Just a little background on this. I went to a State School in a state that I dont reside anymore and attended one semester and left. Was in bad financial shape so couldnt pay the fee. Had to leave the country for a year and now when I came around to fixing my Credit, I saw that the amount has gone to CA. I did validation and it seems that they have all the information regarding my attendance.

So, I did a PFD with the usual statement saying that I dont acknowledge the amount or the account and that I'll offer to settle for 50% of the amount if they delete it from the CR. I got a letter today saying that "its unfortunate that I dont recognize the debt" (attached was further proof of my attending the university to which I owe the debt). I hate it when they try sarcasm mad.gif . Anyways, they also said that that they would NOT accept my offer since the whole purpose of that entry was to show my credit history and they cant remove it and that they require the full amount and once they receive it, they will updated the CRA with it (NOT Delete it ).

I am not happy at all with this. Can someone please help? and BTW, SOL doesnt apply here so I cant do a waiting game. My total debt is a little over $2000.

Help Please..

A state school = public debt = government debt. They do not do paid for delete. They are generally dont settle as it is public funds. Your not recognizing the debt could cost you being taken to court and having a judgement being filed.

I get the picture. BUT, what about Rehabilitation? Can I get in touch with the OC (The university) and do a Payment plan? How easily can that be done? Any ideas?

Bump....

If you are assinged to a CA, contact them. They can set it up. If they are difficult, then call the school.

Pay for delete on student loans? DV student loans?

Student loans are a way different issue than dealing with a charged off credit card. As mentioned above, these are public funds. As such, this debt will haunt you until it is PAID. If your loans are currently listing as in default, the only way to remove that default status is through rehab. Keep in mind though, that only the default status will cure itself (credit report wise that is) upon sucessful rehab. Any initial lender negative tradelines will remain.

You're best bet is to contact the CA and inquire about rehab. I'm assuming they'll have a field day when they pull up your file and realize you tried the DV/PFD tactic first. (Sorry, but let's be realistic here). But, rehab would be the best way to go. I know a lot of people mistakenly try consolidation loans and then get angry because the default status remains on their credit reports. The ONLY way to remove that status is through rehab.

On the bright side - you say the amount is only $2000. I only wish that was what I was facing - I've got nearly $10,000 in SL and I'm just going on #5 payment of rehab. I will tell you though, it's nice not to get the constant phone calls and "reminder" notices anymore and these are the last bad credit issues haunting me.

Good luck to you!

Unfortunately, rehab may or may not be an option for you (although, if it is, it's definitely a good way to go). After you have made your payments (12 or 9, depending on whether the new rules - making it only 9 payments - apply to rehabs begun before 7/1/06), you must have either $1,500 or $1,000 remaining (I can never remember which it is -- Lynn always has to correct me on that -- Thanks!!). The general rule for rehab payments is that they must be 1% of the total balance due, but not less than $50. Since you owe around $2,000, you'd be in the $50/month group. Even assuming you'd only have to make 9 payments, that puts you JUST above the $1,500 mark.

Just an FYI. I agree with the previous posters, though, that SLs and government debts and a WHOLE other ball game from other types of credit issues. They can make very bad (and very legal) things happen to you if they think you're trying to get out of paying (garnishment of your wages, of your tax returns, of your bank accounts, etc. -- often without having to go to court first).

Hope this helps -- good luck!!!

Just wanted to throw out as a possibility (the "down side).. You'll need to check is $2000 is the original amount you think you owe. There are collection costs, etc that accrue on these loans.

Thank you much guys. I appreciate your feedback will try my hands at Rehab.