thecollector

I work for GC services. The reason you are confused is because the dept of ed does not contract your loans to the same collection agency unfortunately. they probably only have about 1 or two of your loans. there is no need to cancel your checking acct. Just call them back and tell them you want to stop the rehab program and you want a 30 a letter ( balance in full letter ) and you will send them the balance in full. I see on here that alot of you are confused about how defaulted student loans work. The loans never get "bought" by a collection agency , they are always with the dept of Education at all times. These companies are contracted by the govt to collect for them. They never buy loans ever. Its not like credit cards where they buy other depts. All GC is contracted tp do is get you into a voluntary repayment program before the us govt starts wage garnishment , tax offset or litigation against you. all payments never go to GC services but directly to the dept of ed.GC does not handle any money at all. All payments are made in due to the dept of ed just fyi. but unfortunately when you default on your student loans your now ingovt default and must work with the collection agency as the dept of ed will not work with you any longer directly :-(

I have the answer to the original question. The dept of education is actually the ones taking your tax returns. It is called a tax offset. Here's the thing about tax offset , it is considered a involentary collection activity by the dept of ed. They charge you every time they have to take money from you ( crazy right !) So tax offsets will never pay off your loans. Many of you do not know this but at the 270th day of not paying on your student loan with your lender , you go into federal govt defaut. Your loan then gets contracted with 17 collection agencies contracted by the dept of ed ( yes they do work for the govt ) to try to get you into a voluntary repayment program. Now the answer to your question. You cannot stop tax offsets unless you get your loan out of default with Ed. And the only way to do that is to get into a voluntary repayment program. The collection agencies will generally give you 3 to 4 options ( depending on your balance size ). First is to pay the balance in full , second is a settlement ( generally 3 options they give you for settlement in full ) , or what most of you will get offered is a loan rehabilitation program. its a payment option that you and the collection agency contracted by the govt work out and after 9-12 consecutive on time payments a new private lender will pick back up your loan and you then negotiate new terms with the new private lender. A Full loan rehab will give you up to 9 years after you get out of default to repay the remaining balance after your rehab ( all rehab payments to the dept of ed go towards your balance ) , and their is a option called the balance sensitive rehab for loans with 8000 + dollars left on the loan after rehab payments. The BSR ( balance sensitive reab ) will give you between 25-30 years to repay on the loan but here's the catch , you get consolodated with this option. And here's the REAL bummer with the BSR : If you go into default after you complete a BSR and you get picked back up with the new lender ( redefault ) the new lender will turn right around and charge your balance 25-30 years worth of intrest and then the dept of ed turns around and adds on 25 % of the balance of collection fees! For example , lets say you go through a BSR and you redefault and your loan size is 50k , you get tacked on 25 years worth of intrest up front making your new balance 100k , then the dept of ed charges you 25% collection fees making your new redefaulted loan 125K !!!!! And folks , the loan is not bankruptable and will follow you for the rest of your life. So seriously think about your options... But my friend thats the only way to get your taxes from getting taken. Get out of default because even though the Dept of Ed is taking your money your not out of default untill you get into a voluntary arrangemnet. By the way I work for the govt collecting on defaulted student loans and my training from the Dept of Ed is where I get all my info :-)

Call the dept of ed. (800)-433-3243 the loan tracking # simple as that.