What happens when a defaulted student loan
is transferred over to a collection agency?
Can we do debt validation?
Full Version: What Happens When A....
You can ... but if this is a federal loan, you might be inviting wage garnishment. And they don't need a judgment to garnish wages.
You should do a search here for "rehab" ... that's really the path you want to take, and you have to ask for it by name. Letters are not a good idea - this is the one time in credit repair you should definitely use the phone.
Read about rehab and wage garnishment, then if you have any questions, please feel free to post them.
You should do a search here for "rehab" ... that's really the path you want to take, and you have to ask for it by name. Letters are not a good idea - this is the one time in credit repair you should definitely use the phone.
Read about rehab and wage garnishment, then if you have any questions, please feel free to post them.
QUOTE(TxQuiltGirl @ Sep 14 2006, 08:53 AM) 
You can ... but if this is a federal loan, you might be inviting wage garnishment. And they don't need a judgment to garnish wages.
You should do a search here for "rehab" ... that's really the path you want to take, and you have to ask for it by name. Letters are not a good idea - this is the one time in credit repair you should definitely use the phone.
Read about rehab and wage garnishment, then if you have any questions, please feel free to post them.
You should do a search here for "rehab" ... that's really the path you want to take, and you have to ask for it by name. Letters are not a good idea - this is the one time in credit repair you should definitely use the phone.
Read about rehab and wage garnishment, then if you have any questions, please feel free to post them.
take a look at this thread. http://creditboards.com/forums/index.php?showtopic=198258
Someone should write up a stickied FAQ stating how to handle defaulted student loan collection efforts. The methodolgy used in handling defaulted consumer credit is vastly different with dealing with federal student loans.
QUOTE(ignoranceIsn'tBliss @ Sep 14 2006, 10:08 AM)
take a look at this thread. http://creditboards.com/forums/index.php?showtopic=198258
Someone should write up a stickied FAQ stating how to handle defaulted student loan collection efforts. The methodolgy used in handling defaulted consumer credit is vastly different with dealing with federal student loans.
Someone should write up a stickied FAQ stating how to handle defaulted student loan collection efforts. The methodolgy used in handling defaulted consumer credit is vastly different with dealing with federal student loans.
ITA, it would be very helpful to the entire forum.
Feel free to add any input you have for the FAQ
thanks for the info! i will read them and if i have any questions, i will be sure to post
them here!
them here!
QUOTE(ignoranceIsn'tBliss @ Sep 14 2006, 09:08 AM)
QUOTE(TxQuiltGirl @ Sep 14 2006, 08:53 AM)
You can ... but if this is a federal loan, you might be inviting wage garnishment. And they don't need a judgment to garnish wages.
You should do a search here for "rehab" ... that's really the path you want to take, and you have to ask for it by name. Letters are not a good idea - this is the one time in credit repair you should definitely use the phone.
Read about rehab and wage garnishment, then if you have any questions, please feel free to post them.
take a look at this thread. http://creditboards.com/forums/index.php?showtopic=198258
Someone should write up a stickied FAQ stating how to handle defaulted student loan collection efforts. The methodolgy used in handling defaulted consumer credit is vastly different with dealing with federal student loans.
I am working on it. Right now I'm distracted by many things - namely finishing school and trying to buy a house. I welcome suggestions on FAQs, as does Pam.
I will be finished with school in eight weeks and will be able to devote more time to pulling this together.
does the 3 month voluntary payment apply as well when the defaulted SL
has already been subrogated to the CA? or do we have no choice but rehab
then consolidate?
i'm trying to weigh our best options...
thanks for your advices!
has already been subrogated to the CA? or do we have no choice but rehab
then consolidate?
i'm trying to weigh our best options...
thanks for your advices!
also, these SL TLs are due to fall off on November 2006...
i know that even though it falls off, the wages can still be garnished...
and it still has to be paid off...
i was thinking if consolidation would work better than
rehab although it's now already being handled by a CA.
any thoughts on this?
i know that even though it falls off, the wages can still be garnished...
and it still has to be paid off...
i was thinking if consolidation would work better than
rehab although it's now already being handled by a CA.
any thoughts on this?
My personal feeling is that if you will gain NOTHING by rehabbing - meaning, no change to the TL on your CR - then you should consolidate rather than rehab. This is most common when something is due to fall off before the rehab ends, or when the TL doesn't show up.
As long as you are positive it will fall off in two months, I would attempt consolidation.
As long as you are positive it will fall off in two months, I would attempt consolidation.
pls. let me know if i'm understanding the steps to take correctly according
to what I've read somewhat:
situation: SLs transferred from DOE to CA
1. Call CA and ask for DOE payment history
2. Since the items are due to fall off from credit report on November this year,
INSTEAD of rehabbing, CONSOLIDATE.
3. To consolidate call, Direct Loans/William D. Ford.
my questions:
1. When calling CA, what exactly are the questions that we need to ask?
2. What are the things that they can possibly tell us to intimidate us but not necessarily
applicable or legal? (Just so we know where to stand)
3. Do we tell the CA that we are consolidating?
4. When we consolidate, will this stop them from garnishing wages?
to what I've read somewhat:
situation: SLs transferred from DOE to CA
1. Call CA and ask for DOE payment history
2. Since the items are due to fall off from credit report on November this year,
INSTEAD of rehabbing, CONSOLIDATE.
3. To consolidate call, Direct Loans/William D. Ford.
my questions:
1. When calling CA, what exactly are the questions that we need to ask?
2. What are the things that they can possibly tell us to intimidate us but not necessarily
applicable or legal? (Just so we know where to stand)
3. Do we tell the CA that we are consolidating?
4. When we consolidate, will this stop them from garnishing wages?
QUOTE(onmyway06 @ Sep 15 2006, 08:44 AM)
pls. let me know if i'm understanding the steps to take correctly according
to what I've read somewhat:
situation: SLs transferred from DOE to CA
1. Call CA and ask for DOE payment history You can do this, and you should if you really don't know where you stand. But if you are reasonably certain that it's correct (remember they add collection fees and capitalize them) then I would skip this step.
2. Since the items are due to fall off from credit report on November this year,
INSTEAD of rehabbing, CONSOLIDATE. Yes, if you are CERTAIN the items will fall off in November.
3. To consolidate call, Direct Loans/William D. Ford. Yes.
my questions:
1. When calling CA, what exactly are the questions that we need to ask? Tell them that you want to cure the situation and you would like to consolidate them.
2. What are the things that they can possibly tell us to intimidate us but not necessarily
applicable or legal? (Just so we know where to stand) If you call and right up front tell them you want to consolidate, they won't try to intimidate you. If you try to play ball, they will threaten wage garnishment of 15%. They will probably tell you that you have to make a big payment today to avoid that.
3. Do we tell the CA that we are consolidating? Yes, they will actually need to know that, to avoid garnishment
4. When we consolidate, will this stop them from garnishing wages? Yes. It should stop them. Have you received a letter stating that garnishment will be starting in 30 days? (I can't remember, sorry).
to what I've read somewhat:
situation: SLs transferred from DOE to CA
1. Call CA and ask for DOE payment history You can do this, and you should if you really don't know where you stand. But if you are reasonably certain that it's correct (remember they add collection fees and capitalize them) then I would skip this step.
2. Since the items are due to fall off from credit report on November this year,
INSTEAD of rehabbing, CONSOLIDATE. Yes, if you are CERTAIN the items will fall off in November.
3. To consolidate call, Direct Loans/William D. Ford. Yes.
my questions:
1. When calling CA, what exactly are the questions that we need to ask? Tell them that you want to cure the situation and you would like to consolidate them.
2. What are the things that they can possibly tell us to intimidate us but not necessarily
applicable or legal? (Just so we know where to stand) If you call and right up front tell them you want to consolidate, they won't try to intimidate you. If you try to play ball, they will threaten wage garnishment of 15%. They will probably tell you that you have to make a big payment today to avoid that.
3. Do we tell the CA that we are consolidating? Yes, they will actually need to know that, to avoid garnishment
4. When we consolidate, will this stop them from garnishing wages? Yes. It should stop them. Have you received a letter stating that garnishment will be starting in 30 days? (I can't remember, sorry).
i just re-read the letter from NCO...
the total charges is $16K+
original loan is only at $10K+
they added $3K+ in interest
and $3K in penalties/charges...
and yes wage garnisment was mentioned...
so now...
1. call CA and ask for payment history
2. tell them that we are consolidating...
***what are the chances of being denied by William Ford for consolidation?**
the total charges is $16K+
original loan is only at $10K+
they added $3K+ in interest
and $3K in penalties/charges...
and yes wage garnisment was mentioned...
so now...
1. call CA and ask for payment history
2. tell them that we are consolidating...
***what are the chances of being denied by William Ford for consolidation?**
Well, if there isn't a judgment, it should go okay ... but remember that NCO COULD still try to get a wage garnishment - it's taking about 45-60 days to get a consolidation done right now.
You really should call them and tell them that you are going to consolidate. At least that way there is no question what your intentions are on the account.
You really should call them and tell them that you are going to consolidate. At least that way there is no question what your intentions are on the account.
i don't believe he has a judgment...but how do we find out for sure?
QUOTE(onmyway06 @ Sep 17 2006, 12:49 AM)
i don't believe he has a judgment...but how do we find out for sure?
It would be on his credit report under Public Records.
oh (lol!) no he doesn't have a judgment, thank God!
so just call NCO, tell them we will consolidate.
and then call William D. Ford.
thanks a lot for your help TxQuiltGrl!
so just call NCO, tell them we will consolidate.
and then call William D. Ford.
thanks a lot for your help TxQuiltGrl!
HELP!
fiancee called NCO and was answered by a very rude agent. he was threatened with
wage garnishment (which was kind of expected already) and was told to give him a
call tonight before 9PM or he will process a wage garnishment for fiancee's next paycheck...
we checked on William D Ford/Direct Loans...seems that he's not eligible cuz he's already
in default and no longer in grace period for repayment...
what other options do we have????
fiancee called NCO and was answered by a very rude agent. he was threatened with
wage garnishment (which was kind of expected already) and was told to give him a
call tonight before 9PM or he will process a wage garnishment for fiancee's next paycheck...
we checked on William D Ford/Direct Loans...seems that he's not eligible cuz he's already
in default and no longer in grace period for repayment...
what other options do we have????
QUOTE(onmyway06 @ Sep 18 2006, 01:27 PM)
HELP!
fiancee called NCO and was answered by a very rude agent. he was threatened with
wage garnishment (which was kind of expected already) and was told to give him a
call tonight before 9PM or he will process a wage garnishment for fiancee's next paycheck...
For starters, collectors don't process AWG. It goes to a garnishment unit. He can "recommend" garnishment but he CANNOT say HE will garnish. FDCPA violations!! Secondly, your fiancee next paycheck will NOT be garnished. A 30 notice must be sent out first giving him a chance to get set up on payments. Call back thru NCO's main switchboard. Ask for a QUALIFIED MANAGER. Take names every step of the way, including switchboard operator. Talk to manager explaining threats which are in violation of the FDCPA and the HEA. If manager is uncooperative, it will be time for the ombudsman.
we checked on William D Ford/Direct Loans...seems that he's not eligible cuz he's already
in default and no longer in grace period for repayment...
yes he is eligible. http://www.ed.gov/offices/OSFAP/DCS/repaying.html
"My credit record is tarnished because of my defaulted student loan. Is there anything that I can do to improve my credit record?"
Failure to repay your defaulted student loan can be damaging to your credit record. In fact, consumer reporting agencies may continue to report an account for 7 years from the opening date. However, there are several things that you can do to at least partially, and in some cases, fully restore your credit record. Your options for bettering your credit report include: repay or satisfy the loan in full; consolidate your loan through the FFEL loan consolidation program or the William D. Ford Direct Loan Program; or rehabilitate your loan through our loan rehabilitation program.
what other options do we have????
fiancee called NCO and was answered by a very rude agent. he was threatened with
wage garnishment (which was kind of expected already) and was told to give him a
call tonight before 9PM or he will process a wage garnishment for fiancee's next paycheck...
For starters, collectors don't process AWG. It goes to a garnishment unit. He can "recommend" garnishment but he CANNOT say HE will garnish. FDCPA violations!! Secondly, your fiancee next paycheck will NOT be garnished. A 30 notice must be sent out first giving him a chance to get set up on payments. Call back thru NCO's main switchboard. Ask for a QUALIFIED MANAGER. Take names every step of the way, including switchboard operator. Talk to manager explaining threats which are in violation of the FDCPA and the HEA. If manager is uncooperative, it will be time for the ombudsman.
we checked on William D Ford/Direct Loans...seems that he's not eligible cuz he's already
in default and no longer in grace period for repayment...
yes he is eligible. http://www.ed.gov/offices/OSFAP/DCS/repaying.html
"My credit record is tarnished because of my defaulted student loan. Is there anything that I can do to improve my credit record?"
Failure to repay your defaulted student loan can be damaging to your credit record. In fact, consumer reporting agencies may continue to report an account for 7 years from the opening date. However, there are several things that you can do to at least partially, and in some cases, fully restore your credit record. Your options for bettering your credit report include: repay or satisfy the loan in full; consolidate your loan through the FFEL loan consolidation program or the William D. Ford Direct Loan Program; or rehabilitate your loan through our loan rehabilitation program.
what other options do we have????
lynn thanks. would you suggest consolidation or rehabilitation?
HELP!
fiancee called NCO and was answered by a very rude agent. he was threatened with
wage garnishment (which was kind of expected already) and was told to give him a
call tonight before 9PM or he will process a wage garnishment for fiancee's next paycheck...
For starters, collectors don't process AWG. It goes to a garnishment unit. He can "recommend" garnishment but he CANNOT say HE will garnish. FDCPA violations!! Secondly, your fiancee next paycheck will NOT be garnished. A 30 notice must be sent out first giving him a chance to get set up on payments. Call back thru NCO's main switchboard. Ask for a QUALIFIED MANAGER. Take names every step of the way, including switchboard operator. Talk to manager explaining threats which are in violation of the FDCPA and the HEA. If manager is uncooperative, it will be time for the ombudsman.
we checked on William D Ford/Direct Loans...seems that he's not eligible cuz he's already
in default and no longer in grace period for repayment...
yes he is eligible. http://www.ed.gov/offices/OSFAP/DCS/repaying.html
"My credit record is tarnished because of my defaulted student loan. Is there anything that I can do to improve my credit record?"
Failure to repay your defaulted student loan can be damaging to your credit record. In fact, consumer reporting agencies may continue to report an account for 7 years from the opening date. However, there are several things that you can do to at least partially, and in some cases, fully restore your credit record. Your options for bettering your credit report include: repay or satisfy the loan in full; consolidate your loan through the FFEL loan consolidation program or the William D. Ford Direct Loan Program; or rehabilitate your loan through our loan rehabilitation program.
what other options do we have????
QUOTE(LynnInMN @ Sep 18 2006, 02:51 PM)
QUOTE(onmyway06 @ Sep 18 2006, 01:27 PM)
HELP!
fiancee called NCO and was answered by a very rude agent. he was threatened with
wage garnishment (which was kind of expected already) and was told to give him a
call tonight before 9PM or he will process a wage garnishment for fiancee's next paycheck...
For starters, collectors don't process AWG. It goes to a garnishment unit. He can "recommend" garnishment but he CANNOT say HE will garnish. FDCPA violations!! Secondly, your fiancee next paycheck will NOT be garnished. A 30 notice must be sent out first giving him a chance to get set up on payments. Call back thru NCO's main switchboard. Ask for a QUALIFIED MANAGER. Take names every step of the way, including switchboard operator. Talk to manager explaining threats which are in violation of the FDCPA and the HEA. If manager is uncooperative, it will be time for the ombudsman.
we checked on William D Ford/Direct Loans...seems that he's not eligible cuz he's already
in default and no longer in grace period for repayment...
yes he is eligible. http://www.ed.gov/offices/OSFAP/DCS/repaying.html
"My credit record is tarnished because of my defaulted student loan. Is there anything that I can do to improve my credit record?"
Failure to repay your defaulted student loan can be damaging to your credit record. In fact, consumer reporting agencies may continue to report an account for 7 years from the opening date. However, there are several things that you can do to at least partially, and in some cases, fully restore your credit record. Your options for bettering your credit report include: repay or satisfy the loan in full; consolidate your loan through the FFEL loan consolidation program or the William D. Ford Direct Loan Program; or rehabilitate your loan through our loan rehabilitation program.
what other options do we have????
if we consolidate...does it take the "default" status from the credit reports?
i'm confused...this is what i read at the direct loans website...
who is the current holder right now? NCO - the CA
that means we have to make a payment arrangement with them first
and then consolidate?
please help! my head is spinning 100mph! can't think straight.
Borrowers can consolidate most defaulted FFEL and Direct Loan Program loans, if they make satisfactory repayment arrangements with the current loan holders or agree to repay their new Direct Consolidation Loan under the Income Contingent Repayment Plan.
who is the current holder right now? NCO - the CA
that means we have to make a payment arrangement with them first
and then consolidate?
please help! my head is spinning 100mph! can't think straight.
Borrowers can consolidate most defaulted FFEL and Direct Loan Program loans, if they make satisfactory repayment arrangements with the current loan holders or agree to repay their new Direct Consolidation Loan under the Income Contingent Repayment Plan.
QUOTE(onmyway06 @ Sep 18 2006, 02:25 PM)
if we consolidate...does it take the "default" status from the credit reports?
No. Rehab will though.
QUOTE(TxQuiltGirl @ Sep 18 2006, 03:46 PM)
QUOTE(onmyway06 @ Sep 18 2006, 02:25 PM)
if we consolidate...does it take the "default" status from the credit reports?
No. Rehab will though.
so should we just go for rehab? he's got 3 loans right now in default i believe.
fiancee called him again...said that we can do consolidation or rehabilitation through them?
is this the way to go? or should we go through DoE's rehab program?
is this the way to go? or should we go through DoE's rehab program?
QUOTE(onmyway06 @ Sep 18 2006, 04:17 PM)
fiancee called him again...said that we can do consolidation or rehabilitation through them?
is this the way to go? or should we go through DoE's rehab program?
is this the way to go? or should we go through DoE's rehab program?
This IS the rehab offered by DoE. You have to do it through the CA. You should do a search here and read about rehab.
okay thanks TxQuilt...
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