I am paying on a commercial student loan in default, but a problem Options

[oneloanissue]

I am paying on a commercial student loan that went into default.

Here's the issue the collection agency through which I am paying keeps sending bills showing no decrease in the debt or indication that I am paying the debt. I am paying 100 per month. The loan is for 3000. Assuming 9 percent interest (my state's right for settlements- that would mean at 1200 for the first year- that should be a decrease in 2 months of the debt to roughly 900 bucks). I have had problems talking to them because they refuse to negotiate.

The agency has already engaged in a couple questionable practices that I let go because I wanted to pay off the debt, but now, that I see they are not decreasing the bill on their record to me- I am concerned.

Here are my questions: a) Are they taking the money, but not crediting it toward the debt? Can they be charging me collection fees rather than crediting the money toward the debt? Is this why they refuse to negotiate? c) Finally, should I take them to court to obtain some sort of settlement arrangment? I have explained to them that I am paying the maximum that I can afford given my other debts for which I am trying to remain in good standing. They still refuse to negotiate, and, indeed, one woman hung up on me. At first, I thought- maybe they want to see that I am acting in good faith. But it's been 10 and half months. They claim their client does not want to come to payment arrangment unless I pay a lot more per month or pay off in full.

[Googie]

[LynnInMN]

I am paying on a commercial student loan that went into default.

What do you mean by a commercial student loan? Never heard of this term. They are either private or federal.
Here's the issue the collection agency through which I am paying keeps sending bills showing no decrease in the debt or indication that I am paying the debt. I am paying 100 per month. The loan is for 3000. Assuming 9 percent interest (my state's right for settlements- that would mean at 1200 for the first year- that should be a decrease in 2 months of the debt to roughly 900 bucks). I have had problems talking to them because they refuse to negotiate.

Collection fees and any past due interest are paid first, and then principal. What are you trying to negotiate? You have a prom note with all the terms outlined...they do not have to negoatiate. Again it would help if you posted what type of loan this is and who the holder/guarantor is

The agency has already engaged in a couple questionable practices that I let go because I wanted to pay off the debt, but now, that I see they are not decreasing the bill on their record to me- I am concerned.

Here are my questions: a) Are they taking the money, but not crediting it toward the debt? Can they be charging me collection fees rather than crediting the money toward the debt? Is this why they refuse to negotiate?

CA's dont charge collection fees...your loan holder/guarantor does

c) Finally, should I take them to court to obtain some sort of settlement arrangment? I have explained to them that I am paying the maximum that I can afford given my other debts for which I am trying to remain in good standing. They still refuse to negotiate, and, indeed, one woman hung up on me. At first, I thought- maybe they want to see that I am acting in good faith. But it's been 10 and half months. They claim their client does not want to come to payment arrangment unless I pay a lot more per month or pay off in full.

You need to do some serious reading on student loans. You are in default and you basically gave up all your rights...you signed a prom note agreeing to balance in full on demand upon default. If you took a private loan to court, they would turn around and file judgement against you and win.

[oneloanissue]

Lynn

This is for other people.

I remember you from two years ago when I was rehabbing my loans and knew nothing about the loan industry (since then I have learned quite a lot about the industry and folks like you). You gave me some poor advice back then about interest rates that I partially followed. I ended up with a higer interest rate on some loans. If I waited like I suspected to consolidate all the loans after the interest rates went down, it would have had an even lower interest rate than I do now. Luckily, it was not many so the overall rate was relatively low.

You will pardon me if I do not trust your word on this one loan that I missed, which occurred because the loan company sold it. I negotiated and addressed all my other private loan creditors (despite your scolding), and am in repayment with them. They do not have to do anything, but it's pretty stupid to keep telling me that they can't come to agreement when I have been paying them 100 per month that they accept.

What I mean is exactly what I said: I am trying to figure out whether they are applying the money I am paying against the debt since they are not showing it in the monthly billing statement. Neither the debt principle or the fees are going down. They remain exactly at the same amount 1100 dollars into a 3000 dollar debt. This is not about "negotiation." This is about accouting and state law. I honestly hoped you were gone and someone who is a consumer advocate was here now.

Again, pretty clear from what I wrote if you were not busy trying to scold me. Back then, when I was just begninging to pay my debts your scolding may have worked, but it's been two years, and I am paying all my debts, including this one.

The only real question is whether this company is trying to charge me more than the debt owed. I have also lucked up this company. They have a bad reputation for these things. but you don't care. I question whether you are here to help or merely to try to attack people who are in bad situations. I do not care. But honestly, I am looking for real advice rather than scolding.

I am glad I came back here. People like you are destructive to people like me. You are not trying to help, and at the time, i really needed real help rather than someone trying to make me feel bad. Again, not going to work this time, because I have been paying my debts and this one creditor is being abusive. The assumption is not that we need to be abused or manipulated. if they are paying against interest and prior fees, fine, but at 1100 bucks, there is now ay, that none of the fees or interst is unpaid. I suspect that they reason they do not want to settle (and your post confirms it) is that they do not want to address the state mandated interest rate of 9 percent without additional fees. Oh, yeah, I have learned how this work. They collection agencies and loan companies make a great deal of profit off of fees.

[ranybabe]

Why don't you deal directly with the people that loaned you the money rather than the collection agency(They probably will negotiate but the agency wouldn't becos of their own fees)
e.g SallieMae......will rather luv you to deal with them directly. Citigroup will work with you...credit union (the best) & Federal loan will either ganish ur check or get you on tax season until you speak with them....so not sure Who you took the loan from.
I think something like this was recently posted by someone else...search & read through.
goodluck.

[LynnInMN]

Why don't you deal directly with the people that loaned you the money rather than the collection agency(They probably will negotiate but the agency wouldn't becos of their own fees)

Because you cant. Student loans are assigned to CA's under contract which means that the CA gets paid no matter what. With the high volume of defaults, the lenders/servicers dont wanna waste time with accounts they are paying other people to collect. Plus the CA's dont add fees....they are assessed by the guarantor upon default.
e.g SallieMae......will rather luv you to deal with them directly. Citigroup will work with you...credit union (the best) & Federal loan will either ganish ur check or get you on tax season until you speak with them....so not sure Who you took the loan from.
I think something like this was recently posted by someone else...search & read through.
goodluck.

You dont know much about student loans do you? Lenders/servicers like salliemae and citibank file default claims upon default....they get their money from the guarantor. They are effectively out of the picture. The guarantor owns the debt and you have to work with who they tell you to work with.

[ranybabe]

Why don't you deal directly with the people that loaned you the money rather than the collection agency(They probably will negotiate but the agency wouldn't becos of their own fees)

Because you cant. Student loans are assigned to CA's under contract which means that the CA gets paid no matter what. With the high volume of defaults, the lenders/servicers dont wanna waste time with accounts they are paying other people to collect. Plus the CA's dont add fees....they are assessed by the guarantor upon default.
e.g SallieMae......will rather luv you to deal with them directly. Citigroup will work with you...credit union (the best) & Federal loan will either ganish ur check or get you on tax season until you speak with them....so not sure Who you took the loan from.
I think something like this was recently posted by someone else...search & read through.
goodluck.

You dont know much about student loans do you? Lenders/servicers like salliemae and citibank file default claims upon default....they get their money from the guarantor. They are effectively out of the picture. The guarantor owns the debt and you have to work with who they tell you to work with.

humm I have never been in default before.
I might have a friend (who has been in 120days default with 2 collection letters & now she is back in repayment with SM) to come share her story & how she did it then. I assume the ""guarantor didn't pay Salliemae & own the debt"""

[LynnInMN]

Why don't you deal directly with the people that loaned you the money rather than the collection agency(They probably will negotiate but the agency wouldn't becos of their own fees)

Because you cant. Student loans are assigned to CA's under contract which means that the CA gets paid no matter what. With the high volume of defaults, the lenders/servicers dont wanna waste time with accounts they are paying other people to collect. Plus the CA's dont add fees....they are assessed by the guarantor upon default.
e.g SallieMae......will rather luv you to deal with them directly. Citigroup will work with you...credit union (the best) & Federal loan will either ganish ur check or get you on tax season until you speak with them....so not sure Who you took the loan from.
I think something like this was recently posted by someone else...search & read through.
goodluck.

You dont know much about student loans do you? Lenders/servicers like salliemae and citibank file default claims upon default....they get their money from the guarantor. They are effectively out of the picture. The guarantor owns the debt and you have to work with who they tell you to work with.

humm I have never been in default before.
I might have a friend (who has been in 120days default with 2 collection letters & now she is back in repayment with SM) to come share her story & how she did it then. I assume the ""guarantor didn't pay Salliemae & own the debt"""

That would be a private salliemae loan....they are handled totally differently from federal.