Who in Dept of ED to contact for settlement?

[frankinD]

I wish to bypass the Collection agency & deal with Dept of Ed direct. I want to settle loan for less than total balance. Who do I contact within the Dept of Ed for settlement. I tried the customer service # and got nowhere.

 

Background: Garnished wages in 2000-01. Filed C-7 BK because garnishment bled me dry. Recently got letter for 30 day intent to garnish wages. Filled out hardship papers & faxed them. Takes 4 days just to verify fax. Will see what happens. Loans were taken out in late 70's/early 80's.

 

Who do I deal with in the Dept of Ed? I want to borrow from retirement fund to pay off loan. Principle is 22K & total owed is 58K. What is a reasonable figure to settle with ED?

 

Thank you.

[LynnInMN]

I wish to bypass the Collection agency & deal with Dept of Ed direct. I want to settle loan for less than total balance. Who do I contact within the Dept of Ed for settlement. I tried the customer service # and got nowhere.

 

Background:  Garnished wages in 2000-01. Filed C-7 BK because garnishment bled me dry. Recently got letter for 30 day intent to garnish wages. Filled out hardship papers & faxed them. Takes 4 days just to verify fax. Will see what happens. Loans were taken out in late 70's/early 80's. 

 

Who do I deal with in the Dept of Ed? I want to borrow from retirement fund to pay off loan. Principle is 22K & total owed is 58K. What is a reasonable figure to settle with ED?

 

Thank you. 

<{POST_SNAPBACK}>

 

The Department of Ed does require that you work with the collection agency the loans is assigned to. That is policy. You can work on a settlement with the collection agency.

 

Generally they will settle off on the collection costs. Sometimes, in cases of old loans they will negate some of the interest. $40k would be a good starting point.

[tootie357]

for a loan that old, you still have to pay it?

[LynnInMN]

for a loan that old, you still have to pay it?

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There is no SOL on federally insured student loans. No BK either.