20 year old student Loan

[LMBEN]

I had a SL 20 years ago, I really don't remember any of the details or even who the loan was through. I thought my ex husband had paid this off years ago. Fast forward to todays mail, I received a letter from a CA addressed to me with my old last name (that I haven't had in over 13 years) stating that the US Dept. of Ed has placed my defaulted SL with them for collection.

This loan is not on any of my CR, but the CA did just do a hard pull last week.

The letter states to notify them within 30 days by mail for verification of the debt.

So my question is, If I do owe this debt and I pay it off in full will they be able to put it on my CR? Or since it is 20 years old will just paying the debt be the end of it? I don't want to do anything that is going to cause them to report. Or has it been way over SOL for reporting and I'm just worried over nothing. If this is my debt I will pay it!

 

Thanks in Advance

[TxQuiltGirl]

They can not put it back on your report, period.

[LMBEN]

Do I have to pay the CA? The amount they say I owe seem a little high or can I just pay the US Dept. of ED?

Should I ask for verification of the debt from the CA? Or should I find out through the Dept. of Ed how much the SL was for?

Thanks

[LynnInMN]

Do I have to pay the CA?

Yes...once assigned to a CA you must deal with them.

 

The amount they say I owe seem a little high or can I just pay the US Dept. of ED?

You can ask the CA for a pay off balance. They will provide a balance that is good for 10 -14 days.

The balance...you have to keep in mind interest is accruing daily plus you have collection fees.

 

Should I ask for verification of the debt from the CA?

You can but if you know you owe it, just pay it. Otherwise they might start a garnishment against you.

 

Or should I find out through the Dept. of Ed how much the SL was for?

 

DOE wont talk to you.

Thanks

 

It is possible that this might reappear on your CR under certain conditions. If this was a FFELP loan that was just recently subrogated by the US DOE, it could pop back up on your report.

[ziggypop]

Do I have to pay the CA? The amount they say I owe seem a little high or can I just pay the US Dept. of ED?

Should I ask for verification of the debt from the CA? Or should I find out through the Dept. of Ed how much the SL was for?

Thanks

 

 

You have to go through the CA. You can ask for verification from the CA -- they'll have all of the promissory notes. You can also try going on to the NSLDS web site (there's a link in one of the stickies above). You'll need a PIN, but you can get it online. I'm not sure how old the loans are that are loged on there, but it could be on there. It could EASILY be for a lot more than what you took out. 20 years of compounded interest, plus when it went into default (18.5% collection fees) and then when it was subrogated by the DOE (I don't remember, but I'm pretty sure that there's another collection fee hit at that point, too).

 

Good luck!!

[BBQ123]

DV them.

[TxQuiltGirl]

DV them.

 

 

 

OMG.

 

NO.

 

 

BBQ, before you start offering advice in THIS forum, I suggest you actually read up on things. You have just suggested that the OP invite the CA to GARNISH THEIR WAGES.

[psp]

DV them.

 

Geez, BBQ. DO NOT DV them.

[coorslight]

This is a 20yr old loan that the OP thought was paid off. It appears that no bills or contact for payment has been made in the last 13yrs at least.

 

Why should the OP just trust that the CA is legit? I would contact the DOE at least I know I can trust their word. Further I would want more than a word, I WOULD want validation of the debt before I sent any payment - specially if it was large.

[LynnInMN]

This is a 20yr old loan that the OP thought was paid off. It appears that no bills or contact for payment has been made in the last 13yrs at least.

 

Why should the OP just trust that the CA is legit? I would contact the DOE at least I know I can trust their word. Further I would want more than a word, I WOULD want validation of the debt before I sent any payment - specially if it was large.

 

 

The key word is "thought" they paid off. With being married, name change and moving, it is not always easy to find borrowers.

 

She can log on to NSLDS. If you knew enough about student loan collections you would realize that DV'ing is an invitation to be garnished. Asking for a payment history from the DOE is a better option, although if the loan has been subrogated, it will simply show the balance transfered from the guarantor.

 

Also keep in mind that payments do not go to the CA. They are sent directly to the DOE payment processing center.

[coorslight]

The key word is "thought" they paid off. With being married, name change and moving, it is not always easy to find borrowers.

 

She can log on to NSLDS. If you knew enough about student loan collections you would realize that DV'ing is an invitation to be garnished. Asking for a payment history from the DOE is a better option, although if the loan has been subrogated, it will simply show the balance transfered from the guarantor.

 

Also keep in mind that payments do not go to the CA. They are sent directly to the DOE payment processing center.

 

I agree I dont know enough and wouldnt want to recommend any course of action regarding a DV to the CA (UNLESS I was 100% sure it was bogus), but I also would make it a requirement to get confirmation of the account from someone somewhere.

 

To me it sounds like the best course of action would be to contact the DOE

[TxQuiltGirl]

 

The key word is "thought" they paid off. With being married, name change and moving, it is not always easy to find borrowers.

 

She can log on to NSLDS. If you knew enough about student loan collections you would realize that DV'ing is an invitation to be garnished. Asking for a payment history from the DOE is a better option, although if the loan has been subrogated, it will simply show the balance transfered from the guarantor.

 

Also keep in mind that payments do not go to the CA. They are sent directly to the DOE payment processing center.

 

I agree I dont know enough and wouldnt want to recommend any course of action regarding a DV to the CA (UNLESS I was 100% sure it was bogus), but I also would make it a requirement to get confirmation of the account from someone somewhere.

 

To me it sounds like the best course of action would be to contact the DOE

 

 

That is what the NSLDS website is for ... you can find out who holds the loans. This is NOT like credit card debt. If someone jacks around, they WILL get bent over - meaning garnishment, etc.

 

Oh, and contacting the DOE will likely get her referred right back to whatever CA is handling it. The DOE doesn't have anything to do with it once it gets to this point.

[LMBEN]

Here is a copy of the letter they sent.

 

Dear Sir/Mme.,

 

The US Department of Education has placed your defaulted student loan account with CA, a collection agency.

 

Unless you notify this office within 30 days after receiving this notice that you dispute the validity of the debt or any portion thereof, this office will assume this debt is valid. If you notify this office in writing within 30 days after receiving this notice, this office will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification. If you request this office in writing within 30 days after receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor.

 

Doesn't this mean I should DV them? Why would I not DV them? Do you suggest that I take a collection agency at there word without proving that I owe the debt? All I want to know is if I really owe this debt and if CA has the legal right to collect, and if the amount is correct. If I do owe the debt, I am immediately going to pay it in full. The 30 days are not up yet. I have my DV letter ready to go. CMRRR

 

Thanks for all the help.

[LynnInMN]

Doesn't this mean I should DV them? Why would I not DV them?

Did you read what we wrote above???

 

Do you suggest that I take a collection agency at there word without proving that I owe the debt?

Again, did you read above??? That is what NSLDS is for. Ignore the beer man.

 

All I want to know is if I really owe this debt and if CA has the legal right to collect, and if the amount is correct. If I do owe the debt, I am immediately going to pay it in full. The 30 days are not up yet. I have my DV letter ready to go. CMRRR

 

All you will get back is a copy of your prom note. In the meantime they will be seeking out your employer.

Go thru NSLDS. Call and ask the CA for your DOE payment history. Unless you have a PAID in FULL notice from your guarantor or the DOE, DV is a total waste of time and energy.

Thanks for all the help.

[TxQuiltGirl]

Here is a copy of the letter they sent.

 

Dear Sir/Mme.,

 

The US Department of Education has placed your defaulted student loan account with CA, a collection agency.

 

Unless you notify this office within 30 days after receiving this notice that you dispute the validity of the debt or any portion thereof, this office will assume this debt is valid. If you notify this office in writing within 30 days after receiving this notice, this office will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification. If you request this office in writing within 30 days after receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor.

 

Doesn't this mean I should DV them? Nope. Why would I not DV them? Because if you read this forum, you will find that is the fast track to garnishment. Do you suggest that I take a collection agency at there word without proving that I owe the debt? Yep. All I want to know is if I really owe this debt Check the nslds.ed.gov. You will need a PIN number but it only takes a day or so to get it and if CA has the legal right to collect, they do; this is not like a cc debt and if the amount is correct it probably isn't what you remember, because fees and interest have accumulated for TWENTY years but the DOE has very good accountants. If I do owe the debt, I am immediately going to pay it in full. The 30 days are not up yet. I have my DV letter ready to go. If you send that, you might as well throw out the red carpet for garnishment. Why would I tell you to pay a CA or not to DV if I didn't feel so strongly about it? CMRRR

 

Thanks for all the help.

 

 

I mean, really. WHY would I do that? If you read any of my posts in the credit forum, you will see that I advocate not paying CA's. But this is not like that kind of debt. Even if you can pay this off, if you DV them, you will open yourself up to the embarassment of having your CHECK garnished. They don't have to go to court to do it. They just DO it. Look it's your decision. The CA may take a while but they WILL produce a piece of paper with YOUR signature on it - the original promissory note is still available.

 

But if you feel strongly about the DV, you can't say you weren't warned of the consequences.

[JackJack]

What do they garnish if you don't have a job, what then would be the immediate repercussion of sending a nice DV letter asking for evidence of proof of a debt. Would not the CA be beholden to the same FDCPA rules and regulations and not be able to continue any type of collection activity (i.e. possible wage garnishment) without providing the verifiable proof of the debt. The OP has stated when the CA verify's the info, the debt will be paid in full for the correct verifiable amount owed (If this is my debt I will pay it!).

 

And can they (CA), or can't they, put it on your credit report, if one pays it in full and it has never been on your credit report.

 

One of you has said no, and the other has said yes, albeit under certain circumstances. And if so, what resource or specific statutes are you citing for the information.

 

Thanks,

 

Jack

[LynnInMN]

What do they garnish if you don't have a job, what then would be the immediate repercussion of sending a nice DV letter asking for evidence of proof of a debt. Would not the CA be beholden to the same FDCPA rules and regulations and not be able to continue any type of collection activity (i.e. possible wage garnishment) without providing the verifiable proof of the debt. The OP has stated when the CA verify's the info, the debt will be paid in full for the correct verifiable amount owed (If this is my debt I will pay it!).

 

Again, these are government accounts. They will validate with a copy of the prom note. However asking for validation is seen by the CA's as a stall tactic. The borrower can self verify the debt thru NSLDS And believe me "saying" you will pay the debt in full to upon validation is about as believable as "the checks in the mail".

And can they (CA), or can't they, put it on your credit report, if one pays it in full and it has never been on your credit report.

 

CA's for government student loans do not report. The guarantors do. And if the loan was recently subrogated, it can and will report again.

 

One of you has said no, and the other has said yes, albeit under certain circumstances. And if so, what resource or specific statutes are you citing for the information.

 

The Higher Education Act

Thanks,

 

Jack

[TxQuiltGirl]

What do they garnish if you don't have a job, what then would be the immediate repercussion of sending a nice DV letter asking for evidence of proof of a debt. Would not the CA be beholden to the same FDCPA rules and regulations and not be able to continue any type of collection activity (i.e. possible wage garnishment) without providing the verifiable proof of the debt. The OP has stated when the CA verify's the info, the debt will be paid in full for the correct verifiable amount owed (If this is my debt I will pay it!).

 

They have other ways of getting to you if you don't have a job. Get hit by a natural disaster and need aid? Forget it. Your spouse dies and you can draw his or her social security? Garnished. Need Medicare? Nope. FHA loan? Forget it. The CA is NOT beholden to provide validation before garnishment. It's something that is agreed to when you sign the promissory. Just because down the road you don't like, that doesn't mean you can stop it.

 

And can they (CA), or can't they, put it on your credit report, if one pays it in full and it has never been on your credit report.

 

One of you has said no, and the other has said yes, albeit under certain circumstances. And if so, what resource or specific statutes are you citing for the information.

 

Thanks,

 

Jack

 

It's the guarantor who reports, as Lynn has already said.

 

HEA

[coorslight]

The key word here is "government" they will get what they want 100% of the time; you as the average citizen have no real rights as your word in the matter is mute!

 

With that said why not try and login to http://www.nslds.ed.gov and look for some information. I personally would also be on the phone to the DOE trying to get as much info as possible from them too.

 

Who is the CA?

[LMBEN]

The key word here is "government" they will get what they want 100% of the time; you as the average citizen have no real rights as your word in the matter is mute!

 

With that said why not try and login to http://www.nslds.ed.gov and look for some information. I personally would also be on the phone to the DOE trying to get as much info as possible from them too.

 

Who is the CA?

 

 

Thanks for your advise,

I'm waiting for my pin # to login to nslds, and I was on the phone today with the DOE.

[Rebuilder2006]

The CA is NOT beholden to provide validation before garnishment. It's something that is agreed to when you sign the promissory. Just because down the road you don't like, that doesn't mean you can stop it.[/color]

HUH?

[TxQuiltGirl]

The CA is NOT beholden to provide validation before garnishment. It's something that is agreed to when you sign the promissory. Just because down the road you don't like, that doesn't mean you can stop it.[/color]

HUH?

 

 

Huh what?

[Rebuilder2006]

The CA is NOT beholden to provide validation before garnishment. It's something that is agreed to when you sign the promissory. Just because down the road you don't like, that doesn't mean you can stop it.[/color]

HUH?

 

 

Huh what?

I read my promissory note thoroughly and nothing like that is stated...

[TxQuiltGirl]

The CA is NOT beholden to provide validation before garnishment. It's something that is agreed to when you sign the promissory. Just because down the road you don't like, that doesn't mean you can stop it.[/color]

HUH?

 

 

Huh what?

I read my promissory note thoroughly and nothing like that is stated...

 

 

Okay. You should use that defense when you get garnished. But if I were you, I'd read about it in this forum before you put all your eggs in that basket.

[Rebuilder2006]

The CA is NOT beholden to provide validation before garnishment. It's something that is agreed to when you sign the promissory. Just because down the road you don't like, that doesn't mean you can stop it.[/color]

HUH?

 

 

Huh what?

I read my promissory note thoroughly and nothing like that is stated...

 

 

Okay. You should use that defense when you get garnished. But if I were you, I'd read about it in this forum before you put all your eggs in that basket.

Rather hard to garnish the self-employed...