Salie Mae charge off - collections

[Tim68]

Ok back in November I got behind on a small ($12,000) student loan was told pay xxx amount and your account would be current. Of course I pad and in December I was told I need to make another above normal payment to get current. As times were very tight I got frustrated and stopped paying (I know very foolish). Fast forward 6 months to today, I am now in collections with a company called ARM or Account Receivable Management and was told they were a division of sallie mae and by the end of the conversation he divulged they were a collection agency. I want to try to begin to repair this loan with sallie mae but do not trust this collection agency. I was wondering if anyone has been in this position and if so were you able to get back to working directly with sallie mae? If I make arrangement with the CA is it possible I will screw myself and still end up oweing Sallie Mae? This problem is not going to go away and is going to get out of control with all of the fees & interest already racking up within 6 months I went from oweing them 12,700 to 17,000 and change. Please anyone advise!!!!

[LynnInMN]

Is this a private or government loan?

 

 

Defaulting a private loan is probably one of the worst things you can do. Once you default the entire balance becomes accelerated (due in full immediately). You cannot repair the damage...no rehab and no consolidation loan program to bring it current like the federal loans.

 

If it is a government loan, SM would no longer be party to the loan....the guarantor would have paid the defaualt claim.

[Tim68]

I spoke with the DOE today and they are sending out an application packet, the person I spoke with said should be no problem qualifying and I had told her the loan was in default and that is was with Sallie Mae however nothing was asked with reguard to gov. loan or private. I will call them back tomorrow to clarify but are you saying that they will not assist with consolidation because this is a private student loan. Dont really understand the difference and she never asked and never said anthing would be excluded i.e private.

[Big G]

Have you considered doing the rehabilitation program? This will have a better effect on your credit report as the negative TL will be completely removed and you basically get a brand new start after making 9 consecutive on time payments. (I work for one of SLMA's CA's so I definitely know)

 

Consolidation is good but will not remove the tradeline. Just a thought

 

G

[LynnInMN]

I spoke with the DOE today and they are sending out an application packet, the person I spoke with said should be no problem qualifying and I had told her the loan was in default and that is was with Sallie Mae however nothing was asked with reguard to gov. loan or private. I will call them back tomorrow to clarify but are you saying that they will not assist with consolidation because this is a private student loan. Dont really understand the difference and she never asked and never said anthing would be excluded i.e private.

 

 

If this is a true private student loan, your application will automatically be denied. DOE or the Direct Loan program is only for government guaranteed DL or FFELP loans. Calling the DOE for a private loan is basically a wasted step, as they have no involvement with them.

 

You need to call SM and find out whether it is is a FFELP loan which they handle or a true private SM insured loan.

[yellorose]

SL forum being patrolled by sallie mae collections agents? that's the last I post here.

[LynnInMN]

SL forum being patrolled by sallie mae collections agents? that's the last I post here.

 

And what is the problem with that? If they give you wrong information, there are enough of us here that know the rules, we will definately let you know! Hell I used to be a collector for the DOE in a CA and was a garnishment manager for awhile!!

[Big G]

That's fine I won't post here anymore. I was just offering some advice. I have 6+ years of experience w/ both DOE & SLMA 3rd party collections. I thought people might appreciate the (insider) information from a knowledgeable source.

 

BTW Why do you think I'm on credit boards anyway? I tried to start a small biz & failed & now my credit is completely F'd.

 

I thought while I was on here learning techniques so I could buy a house, that I would try and give honest feedback about SL.

 

I'm pretty sure (last time I checked) that I'm not evil, & I will try and refrain from swallowing your soul.

 

G

[LKH]

SL forum being patrolled by sallie mae collections agents? that's the last I post here.

 

 

Did you even think before you posted this crap? IMO, someone who is in the biz would be able to offer helpful info. If it's the last you post, so be it, but unless and until a reason is given, Big G will be very welcome to participate here.

[yellorose]

you know what, Big G? I'm sorry I said that. there was nothing wrong with what you said and actually you offered good advice. so I hope you accept my apology. post here any time, we need you, truth be told.

 

I get cranky on the SL board because it seems like everything I try leads nowhere, but that's not your fault!

 

My experiences with SL collections agents are very very bad. They have given me a lot of grief and caused me to lose a job. but I'm sure you're not like that!

 

again, sorry I said that.

Edited July 5, 2008 by yellorose

[yellorose]

As to did I think before posting my opinion, oh yes, I thought about a lot of conversations with SL collections agents.

 

to be fair, I didnt ask Big G not to post, I just said I would not. and I wont.

 

Tim, I hope you get your question resolved. sorry to jack your thread with my "crap." Ive seen a lot worse on these boards tho!!