Hi, I'm new here and havent seen this question yet.
I'm deeply in debt but digging my way out. I have a 50k student loan (government loan) presently garnishing my wages. I have another loan from sallie mae which I have ignored for 3 years. this is the one that is keeping me up at night.
I can easily start the rehab process with the govt loan, but havent because I am fighting off another wage garnishment from a cc company (more money I owe).
my sallie mae situation is that it was originally for ~ 20k, but I withdrew from the program early. the amount then became 4k, which I was paying, but then got so broke I couldnt pay. now they are reporting it on my credit report as over 35K!!! the CR says "charge off" and nothing more (if I'm reading it right). they were very mean when I was getting calls from them, but I've moved and changed jobs so they dont have my info any more. I have not heard anything from them for 2 years, but I fear I will soon.
first question -- what to do to dispute how my 4K loan turned into 35K -- if I call them or write them, wont they just initiate collection against me instantly? I'm afraid to open a can of worms.
second question -- could this loan be consolidated with the govt loan and thus get rehabbed along with the govt loan (when I begin the process)? if so, that would be great, but then I dont want to pay them 35k if I can avoid it.
in answer the question I know you all will ask, I am looking for a copy of the original sallie mae agreement; but remember that it was 11% interest, that's all I remember about it. I never dreamed they would tack on 25K worth of interest and fees!
please advise. and thanks
Full Version: 2 student loans - 1 being garnished; 1 being ignored
QUOTE(jmo @ Apr 3 2007, 03:43 PM) 
Hi, I'm new here and havent seen this question yet.
I'm deeply in debt but digging my way out. I have a 50k student loan (government loan) presently garnishing my wages. I have another loan from sallie mae which I have ignored for 3 years. this is the one that is keeping me up at night.
Who is holding this loan right now?? It is a government loan or Private loan??
I can easily start the rehab process with the govt loan, but havent because I am fighting off another wage garnishment from a cc company (more money I owe).
You will need to talk to them...you will have to make the qualifying payment over and above the garnishment.
my sallie mae situation is that it was originally for ~ 20k, but I withdrew from the program early. the amount then became 4k, which I was paying, but then got so broke I couldnt pay.
How did it drop down?? Where funds returned to the lender??
now they are reporting it on my credit report as over 35K!!! the CR says "charge off" and nothing more (if I'm reading it right). they were very mean when I was getting calls from them, but I've moved and changed jobs so they dont have my info any more. I have not heard anything from them for 2 years, but I fear I will soon.
first question -- what to do to dispute how my 4K loan turned into 35K -- if I call them or write them, wont they just initiate collection against me instantly? I'm afraid to open a can of worms.
Without details as to how the balance dropped, cannot answer.
second question -- could this loan be consolidated with the govt loan and thus get rehabbed along with the govt loan (when I begin the process)? if so, that would be great, but then I dont want to pay them 35k if I can avoid it.
If it is a private loan, no.
in answer the question I know you all will ask, I am looking for a copy of the original sallie mae agreement; but remember that it was 11% interest, that's all I remember about it. I never dreamed they would tack on 25K worth of interest and fees!
This really sounds like a private loan. When you withdrew from the program, where you actually due a refund??
please advise. and thanks
I'm deeply in debt but digging my way out. I have a 50k student loan (government loan) presently garnishing my wages. I have another loan from sallie mae which I have ignored for 3 years. this is the one that is keeping me up at night.
Who is holding this loan right now?? It is a government loan or Private loan??
I can easily start the rehab process with the govt loan, but havent because I am fighting off another wage garnishment from a cc company (more money I owe).
You will need to talk to them...you will have to make the qualifying payment over and above the garnishment.
my sallie mae situation is that it was originally for ~ 20k, but I withdrew from the program early. the amount then became 4k, which I was paying, but then got so broke I couldnt pay.
How did it drop down?? Where funds returned to the lender??
now they are reporting it on my credit report as over 35K!!! the CR says "charge off" and nothing more (if I'm reading it right). they were very mean when I was getting calls from them, but I've moved and changed jobs so they dont have my info any more. I have not heard anything from them for 2 years, but I fear I will soon.
first question -- what to do to dispute how my 4K loan turned into 35K -- if I call them or write them, wont they just initiate collection against me instantly? I'm afraid to open a can of worms.
Without details as to how the balance dropped, cannot answer.
second question -- could this loan be consolidated with the govt loan and thus get rehabbed along with the govt loan (when I begin the process)? if so, that would be great, but then I dont want to pay them 35k if I can avoid it.
If it is a private loan, no.
in answer the question I know you all will ask, I am looking for a copy of the original sallie mae agreement; but remember that it was 11% interest, that's all I remember about it. I never dreamed they would tack on 25K worth of interest and fees!
This really sounds like a private loan. When you withdrew from the program, where you actually due a refund??
please advise. and thanks
the large SL is being held by NY State Higher Education and I have spoken with them. they are very nice and yes, I have to come up with $2700.00 fee to begin the rehab process. as I said, I havent done this yet, because I am fighting off another garnishment and have a court date next month. if I clear up this garnishment, then the cc company will simply begin garnishment my wages. as it is, I am being garnished the limit.
as for the sallie mae, when I withdrew from the program, I received a new invoice from them in the amount of approx $4,000, which I began paying on. I'm not sure what happened to the rest of the money, but I believe the school got their payment. again, I am looking for the original agreement. sallie mae then began pursuing me in earnest over the phone, but they were only asking for the total amount of approx 4K. my CR doesnt show where the loan is now; I did get a letter from a collector about 2 years ago offering a settlement for 24K if I paid instantly. I did not understand that this loan was actually from a private lender (if it was). not sure that if I contact Salliemae or the credit agency directly this would be a mistake.
as for the sallie mae, when I withdrew from the program, I received a new invoice from them in the amount of approx $4,000, which I began paying on. I'm not sure what happened to the rest of the money, but I believe the school got their payment. again, I am looking for the original agreement. sallie mae then began pursuing me in earnest over the phone, but they were only asking for the total amount of approx 4K. my CR doesnt show where the loan is now; I did get a letter from a collector about 2 years ago offering a settlement for 24K if I paid instantly. I did not understand that this loan was actually from a private lender (if it was). not sure that if I contact Salliemae or the credit agency directly this would be a mistake.
QUOTE(jmo @ Apr 3 2007, 05:21 PM)
the large SL is being held by NY State Higher Education and I have spoken with them. they are very nice and yes, I have to come up with $2700.00 fee to begin the rehab process. as I said, I havent done this yet, because I am fighting off another garnishment and have a court date next month. if I clear up this garnishment, then the cc company will simply begin garnishment my wages. as it is, I am being garnished the limit.
You're not required to make a down payment or fee to rehab. You do have to agree that any unpaid interest or fees/collection costs can be capitalized when rehab is complete.
as for the sallie mae, when I withdrew from the program, I received a new invoice from them in the amount of approx $4,000, which I began paying on. I'm not sure what happened to the rest of the money, but I believe the school got their payment.
If you withdraw early the school may be required to refund disbursements to the lender. That may be why the balance with SLMA lowered so much...they "cancelled out" the portion of the loan the school refunded.
again, I am looking for the original agreement. sallie mae then began pursuing me in earnest over the phone, but they were only asking for the total amount of approx 4K. my CR doesnt show where the loan is now; I did get a letter from a collector about 2 years ago offering a settlement for 24K if I paid instantly. I did not understand that this loan was actually from a private lender (if it was). not sure that if I contact Salliemae or the credit agency directly this would be a mistake.
You're not required to make a down payment or fee to rehab. You do have to agree that any unpaid interest or fees/collection costs can be capitalized when rehab is complete.
as for the sallie mae, when I withdrew from the program, I received a new invoice from them in the amount of approx $4,000, which I began paying on. I'm not sure what happened to the rest of the money, but I believe the school got their payment.
If you withdraw early the school may be required to refund disbursements to the lender. That may be why the balance with SLMA lowered so much...they "cancelled out" the portion of the loan the school refunded.
again, I am looking for the original agreement. sallie mae then began pursuing me in earnest over the phone, but they were only asking for the total amount of approx 4K. my CR doesnt show where the loan is now; I did get a letter from a collector about 2 years ago offering a settlement for 24K if I paid instantly. I did not understand that this loan was actually from a private lender (if it was). not sure that if I contact Salliemae or the credit agency directly this would be a mistake.
so you are saying I should call sallie mae and find out what happened with the loan and why the amount changed so drastically? perhaps they could give me some sort of documented history to work with. this seems like a good start.
Ok, I called Sallie Mae and was told the loan is in charge off. The also told me that they paid the entire amount of the loan (approx 19.5k) to the school -- a trade school in new york. since I defaulted they have sent it to a CA. I did send a debt validation letter to the CA 2 months ago, this is before I knew this was the wrong strategy for student loans. I have heard nothing from the CA.
the thing is, I know for sure the enrollment agreement included a fair provision in case of early withdrawal from the program but I do not have a copy of the enrollment agreement. need to call the school and see if I can get a copy of that. then the school needs to reimburse me, I guess, for the unused portion. by now there is about 9 thousand dollars in charge off fees and interest.
anyone have any experience in dealing with this?
the thing is, I know for sure the enrollment agreement included a fair provision in case of early withdrawal from the program but I do not have a copy of the enrollment agreement. need to call the school and see if I can get a copy of that. then the school needs to reimburse me, I guess, for the unused portion. by now there is about 9 thousand dollars in charge off fees and interest.
anyone have any experience in dealing with this?
QUOTE(jmo @ Apr 5 2007, 06:41 PM)
Ok, I called Sallie Mae and was told the loan is in charge off. The also told me that they paid the entire amount of the loan (approx 19.5k) to the school -- a trade school in new york. since I defaulted they have sent it to a CA. I did send a debt validation letter to the CA 2 months ago, this is before I knew this was the wrong strategy for student loans. I have heard nothing from the CA.
the thing is, I know for sure the enrollment agreement included a fair provision in case of early withdrawal from the program but I do not have a copy of the enrollment agreement. need to call the school and see if I can get a copy of that. then the school needs to reimburse me, I guess, for the unused portion. by now there is about 9 thousand dollars in charge off fees and interest.
anyone have any experience in dealing with this?
the thing is, I know for sure the enrollment agreement included a fair provision in case of early withdrawal from the program but I do not have a copy of the enrollment agreement. need to call the school and see if I can get a copy of that. then the school needs to reimburse me, I guess, for the unused portion. by now there is about 9 thousand dollars in charge off fees and interest.
anyone have any experience in dealing with this?
Have you checked the schools website???
Schools generally have a withdrawal policy. 75% refund after the first week, 50 after the second and so on.
Trade schools, particularly private ones will have a very strict withdrawal policy. They are in the business to make money and will make it as difficult as possible to qualify for little to no refund.
Even if it turns out that you are due a refund, you will be held liable for fees and interest.
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