I have a pending agreement with a collector for my old student loan but I'd like to know if I can make a better agreement with the school directly? They may be willing to take a settlement offer. I think a collector won't since they get a piece of what's collected. What do you guys think?
I have two other outstanding loans and I want to try to offer a lump settlement to avoid any unforseen repayment calamities. Also, if I can make an agreement I can pay both off in a year instead of in two years. One loan is with the DOE and to other is with PHEAA (Pennsylvania). Are either of these amenable to negotiation of the debt?
Full Version: Make a deal with collector for FFELP or school?
QUOTE(cocoabean @ May 5 2006, 01:58 PM) 
I have a pending agreement with a collector for my old student loan but I'd like to know if I can make a better agreement with the school directly? They may be willing to take a settlement offer. I think a collector won't since they get a piece of what's collected. What do you guys think?
Probably not. When an account is assigned to CA by a school, generally there is a contract between the school and the CA which usually includes an agreement for the school not to interfer without cause. The CA gets their commision regardless of where or who you send the funds too. When I worked at the University, we refused to work with accounts placed at CA....thats what we paid the collection agency to do. Also keep in mind that anything you settled off on you will be 1099's for.
I have two other outstanding loans and I want to try to offer a lump settlement to avoid any unforseen repayment calamities. Also, if I can make an agreement I can pay both off in a year instead of in two years. One loan is with the DOE and to other is with PHEAA (Pennsylvania). Are either of these amenable to negotiation of the debt?
I am assuming that both of these loans are in default. Lump sum settlements must be paid off in a lump sum....not over a year or two. The lower the balance, the smaller of a settlement you will get. You also will get 1099's for these as well.
Probably not. When an account is assigned to CA by a school, generally there is a contract between the school and the CA which usually includes an agreement for the school not to interfer without cause. The CA gets their commision regardless of where or who you send the funds too. When I worked at the University, we refused to work with accounts placed at CA....thats what we paid the collection agency to do. Also keep in mind that anything you settled off on you will be 1099's for.
I have two other outstanding loans and I want to try to offer a lump settlement to avoid any unforseen repayment calamities. Also, if I can make an agreement I can pay both off in a year instead of in two years. One loan is with the DOE and to other is with PHEAA (Pennsylvania). Are either of these amenable to negotiation of the debt?
I am assuming that both of these loans are in default. Lump sum settlements must be paid off in a lump sum....not over a year or two. The lower the balance, the smaller of a settlement you will get. You also will get 1099's for these as well.
I understand that the lump sum is a one-time payment and that's why it's attractive to me. I have never made payments on these two loans and they have not been reported on my CR. They're in the hands of collection agencies but I have not been sued (yet). I'd rather pay and go! 
My plan is to gather a lump sum for a settlement. Who do I call about a settlement or what do I say in negotiations to get a settlement?
I tried to settle the first loan and offered 60% of the balance (including interest, collection fees) but was rebuffed. Should I have made a counter offer? I gave up and made a short term payment plan.
If I can't get an affordable settlement agreement from those two lenders, I will consolidate so my rate won't jump, then pay double time.
My plan is to gather a lump sum for a settlement. Who do I call about a settlement or what do I say in negotiations to get a settlement?I tried to settle the first loan and offered 60% of the balance (including interest, collection fees) but was rebuffed. Should I have made a counter offer? I gave up and made a short term payment plan.
If I can't get an affordable settlement agreement from those two lenders, I will consolidate so my rate won't jump, then pay double time.
QUOTE(cocoabean @ May 5 2006, 04:20 PM)
I understand that the lump sum is a one-time payment and that's why it's attractive to me. I have never made payments on these two loans and they have not been reported on my CR. They're in the hands of collection agencies but I have not been sued (yet). I'd rather pay and go! My plan is to gather a lump sum for a settlement. Who do I call about a settlement or what do I say in negotiations to get a settlement?
I tried to settle the first loan and offered 60% of the balance (including interest, collection fees) but was rebuffed. Should I have made a counter offer? I gave up and made a short term payment plan.
If I can't get an affordable settlement agreement from those two lenders, I will consolidate so my rate won't jump, then pay double time.
My plan is to gather a lump sum for a settlement. Who do I call about a settlement or what do I say in negotiations to get a settlement?I tried to settle the first loan and offered 60% of the balance (including interest, collection fees) but was rebuffed. Should I have made a counter offer? I gave up and made a short term payment plan.
If I can't get an affordable settlement agreement from those two lenders, I will consolidate so my rate won't jump, then pay double time.
In all reality, all they will drop is the collection fees. These are government insured, which means this is public funds and will never go away. They can garnish you without a court order and seize your state and federal income tax returns. How long have these been in default???
It's been 15 years and I've been off the grid with no accounts and a commonlaw marriage. That's probably why I've never been sued. I have no assets and have been a homemaker until now. I've heard it's a good time to consolidate as I want to be protected if we break up. I won't be able to even rent my own apartment without a good credit history.
Did I negotiate badly or was I OK?
Did I negotiate badly or was I OK?
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