Private Student Loan...Charged Off...

[adjoa]

I have a huge problem:

 

Essentially I consolidated all of my loans with Sallie Mae with the exception of 2 private loans. Company A contacted me and told me that they couldn't consolidate, I've faithfully paid them every month. Company B I don't hear from I assume everything is okay until my state taxes are seized... I call them it is my no interest state loan (that couldn't be consolidated but no one contacted me in the process) and the state wants there $$$.

I call the office and speak to a rep. she tells me that the loan hasn't been paid it is has been sent to collections. I had not received one notice. So I try to negotiate starting payments with them, the rep says the will not accept $$$ from me and I have to go through the collections agency. I contact the CA but they are trying to make me pay about $800 over what is owed. I know that is not the correct amount.

 

I know I owe the $$$ but I am not in the business of giving someone extra $$$. I am now being written letters by a lawyer who saying they are going to take me to court. On my credit report it is charged off... and the amount being report is incorrect.

 

How do I dipute this? and what do I dispute? Do I send letter to the collection agency, the lawyer, and the loan company?

 

Please help, this is the only student loan causing me problems!

 

Thanks!

[Cynic]

Company B I don't hear from I assume everything is okay until my state taxes are seized... I contact the CA but they are trying to make me pay about $800 over what is owed. I know that is not the correct amount.

 

Your post does not make sense for the following reasons:

 

1) If you've lost contact with your lender you don't know what you owe. To know what you owe you would have to have records, and if you had records you would know when payments were due.

 

2) "Private no-interest state loan" is an oxymoron. Private lenders don't lend money for free. "State Loans" are usually Stafford loans that can have 0% interest (and special forgiveness/repayment benefits) if you meet certain qualifications (EX: teach XX subject for XX years in teacher shortage area in XX state) and keep the loan in good standing. If you defaulted you definitely lost the no-interest benefit, and are also responsible for collection costs and fees.

 

Don't even waste your time with the "never contacted" argument. Their inability to track you down does not abrogate your responsibility to pay principle, interest, fees, and collection costs, according to the terms of your promissory note.

 

If you send them a DV letter they will send you a copy of your p-note and account history.

Edited April 12, 2007 by Cynic

[adjoa]

Company B I don't hear from I assume everything is okay until my state taxes are seized... I contact the CA but they are trying to make me pay about $800 over what is owed. I know that is not the correct amount.

 

Your post does not make sense for the following reasons:

 

1) If you've lost contact with your lender you don't know what you owe. To know what you owe you would have to have records, and if you had records you would know when payments were due.

 

2) "Private no-interest state loan" is an oxymoron. Private lenders don't lend money for free. "State Loans" are usually Stafford loans that can have 0% interest (and special forgiveness/repayment benefits) if you meet certain qualifications (EX: teach XX subject for XX years in teacher shortage area in XX state) and keep the loan in good standing. If you defaulted you definitely lost the no-interest benefit, and are also responsible for collection costs and fees.

 

Don't even waste your time with the "never contacted" argument. Their inability to track you down does not abrogate your responsibility to pay principle, interest, fees, and collection costs, according to the terms of your promissory note.

 

If you send them a DV letter they will send you a copy of your p-note and account history.

 

Okay thanks for your response... do you have any suggestions on how I should handle this situation?

Edited April 12, 2007 by adjoa

[LynnInMN]

Sounds like they are going to sue you. Better beg, borrow or find the money somehow...or else you are going to find yourself with a judgement.