This is for DH.
He got a letter or something today notifying him that CBE is garnishing his wages for this. They got in touch with him in April of this year regarding this student loan and he told them to send him a letter with all the info. Well, we never got the info, instead he got this.
I have NO idea where to start or what to do. A few years ago I fixed my and his credit and there was nothing on his about this loan. If there had been, we would have addressed it then. So this is coming out of the blue. I would estimate that this loan is over 15 years old. To be honest, he doesn't even know who the original loan was through.
Does CBE have to provide any info, like with CC companies or auto loans? How do we stop the garnishment? Can it be stopped?
Full Version: CBE Group $48K, wage garnish
Okay, some additional info.
He got phone call from them saying that they are reviewing this and will start wage garnishment but it has not been processed as of yet. They want to work out a payment plan so that doesn't happen. DH told them to again send him something in writing. They claimed to have no record of the phone conversation from April where he requested everything to be sent to him via mail.
He got phone call from them saying that they are reviewing this and will start wage garnishment but it has not been processed as of yet. They want to work out a payment plan so that doesn't happen. DH told them to again send him something in writing. They claimed to have no record of the phone conversation from April where he requested everything to be sent to him via mail.
QUOTE(imtrying @ May 14 2008, 03:17 PM) 
Okay, some additional info.
He got phone call from them saying that they are reviewing this and will start wage garnishment but it has not been processed as of yet. They want to work out a payment plan so that doesn't happen. DH told them to again send him something in writing. They claimed to have no record of the phone conversation from April where he requested everything to be sent to him via mail.
He got phone call from them saying that they are reviewing this and will start wage garnishment but it has not been processed as of yet. They want to work out a payment plan so that doesn't happen. DH told them to again send him something in writing. They claimed to have no record of the phone conversation from April where he requested everything to be sent to him via mail.
Your husband needs to become a little bit more proactive in this matter. If these are federal loans, he can log into http://www.nslds.ed.gov/nslds_SA/ and look them up himself. If he knows he has defaulted federal loans, requesting information being sent to him in writing will not stop them for initiating a wage garnishment.....in fact asking could end up speeding it up. They do not need a court order to garnish him either.
Hi Lynn,
Thanks for the information. We are trying to react to this but we want to confirm all the information before we start to randomly hand over money. We aren't denying that he owes, but I don't think that asking for information in writing is a stall tactic. We want everything written out. Original amount, interest rate, etc. Seeing as there has been NOTHING in years about this, I don't think asking for validation is a bad thing?
Do you know how DH would find the PIN # that is asked for on the link you gave?
Thanks for the information. We are trying to react to this but we want to confirm all the information before we start to randomly hand over money. We aren't denying that he owes, but I don't think that asking for information in writing is a stall tactic. We want everything written out. Original amount, interest rate, etc. Seeing as there has been NOTHING in years about this, I don't think asking for validation is a bad thing?
Do you know how DH would find the PIN # that is asked for on the link you gave?
QUOTE(imtrying @ May 15 2008, 06:26 AM)
Hi Lynn,
Thanks for the information. We are trying to react to this but we want to confirm all the information before we start to randomly hand over money. We aren't denying that he owes, but I don't think that asking for information in writing is a stall tactic.
The CA will see this as a stall tactic. It is the students responsiblity to keep their lender or guarantor informed of their current address. If the address was on file, you would have received tons of written information over the years. Dunning notices, tax offset notices, default notices.
We want everything written out. Original amount, interest rate, etc. Seeing as there has been NOTHING in years about this, I don't think asking for validation is a bad thing?
NDLS will give you the original amount and current interest. Keep in mind that he will have a lot of interest, some of it capitalized plus collection fees of up to 25%. CBE group is a vendor for the US department of education and it is quite possible that the Feds have subrogated the loan, adding on additional collection fees.
Do you know how DH would find the PIN # that is asked for on the link you gave?
Under the FAQ's.
https://www.nslds.ed.gov/nslds_SA/SaFaqDeta...aq2#faq2.ques.2
Thanks for the information. We are trying to react to this but we want to confirm all the information before we start to randomly hand over money. We aren't denying that he owes, but I don't think that asking for information in writing is a stall tactic.
The CA will see this as a stall tactic. It is the students responsiblity to keep their lender or guarantor informed of their current address. If the address was on file, you would have received tons of written information over the years. Dunning notices, tax offset notices, default notices.
We want everything written out. Original amount, interest rate, etc. Seeing as there has been NOTHING in years about this, I don't think asking for validation is a bad thing?
NDLS will give you the original amount and current interest. Keep in mind that he will have a lot of interest, some of it capitalized plus collection fees of up to 25%. CBE group is a vendor for the US department of education and it is quite possible that the Feds have subrogated the loan, adding on additional collection fees.
Do you know how DH would find the PIN # that is asked for on the link you gave?
Under the FAQ's.
https://www.nslds.ed.gov/nslds_SA/SaFaqDeta...aq2#faq2.ques.2
Additional information as of today.
Received letter from them and now the total is $49,600.72. They include the standard "dispute the validity 30 days, etc." line.
I will look, but is there a specific DV letter to use when dealing with student loans? Is it different from the ones used for credit cards or auto loans?
Also, went to the nslds site and got the pin. Total amount including interest according to them is "only" $33,149. Can anyone explain where the additional $16K comes from?
Received letter from them and now the total is $49,600.72. They include the standard "dispute the validity 30 days, etc." line.
I will look, but is there a specific DV letter to use when dealing with student loans? Is it different from the ones used for credit cards or auto loans?
Also, went to the nslds site and got the pin. Total amount including interest according to them is "only" $33,149. Can anyone explain where the additional $16K comes from?
QUOTE(imtrying @ May 21 2008, 10:38 AM)
Additional information as of today.
Received letter from them and now the total is $49,600.72. They include the standard "dispute the validity 30 days, etc." line.
I will look, but is there a specific DV letter to use when dealing with student loans? Is it different from the ones used for credit cards or auto loans?
I wouldnt....another stall. You have verified the debt on the NDLS site. You can ask the CA for a "client" breakdown, although if your loan has been subrogated to the DOE, you will only get the information as of the last claim paid date. So if the DOE paid $xxx to his previous guarantor, they will have information from the time they took over the loan.
Also, went to the nslds site and got the pin. Total amount including interest according to them is "only" $33,149. Can anyone explain where the additional $16K comes from?
Federally mandated collection fees are charged ranging from 19-25% plus there are additional fees if the account was subrogated by the Feds.
Received letter from them and now the total is $49,600.72. They include the standard "dispute the validity 30 days, etc." line.
I will look, but is there a specific DV letter to use when dealing with student loans? Is it different from the ones used for credit cards or auto loans?
I wouldnt....another stall. You have verified the debt on the NDLS site. You can ask the CA for a "client" breakdown, although if your loan has been subrogated to the DOE, you will only get the information as of the last claim paid date. So if the DOE paid $xxx to his previous guarantor, they will have information from the time they took over the loan.
Also, went to the nslds site and got the pin. Total amount including interest according to them is "only" $33,149. Can anyone explain where the additional $16K comes from?
Federally mandated collection fees are charged ranging from 19-25% plus there are additional fees if the account was subrogated by the Feds.
Interest is running about $200 per month right now. I would suggest you get him on a payment plan or they will start the garnishment proceedings against him.
Thanks again for the info Lynn.
I have been reading and I'm still confused about a few words. What does subrogated mean? (We really need a sticky of glossary terms in this forum. lol) And how do I find out if that happened?
Again, I am not trying to stall, just trying to figure this all out.
BTW, this is for one non subsidized Stafford loan and one Perkins loan.
I have been reading and I'm still confused about a few words. What does subrogated mean? (We really need a sticky of glossary terms in this forum. lol) And how do I find out if that happened?
Again, I am not trying to stall, just trying to figure this all out.
BTW, this is for one non subsidized Stafford loan and one Perkins loan.
QUOTE(imtrying @ May 21 2008, 11:03 AM)
Thanks again for the info Lynn.
I have been reading and I'm still confused about a few words. What does subrogated mean? (We really need a sticky of glossary terms in this forum. lol) And how do I find out if that happened?
Again, I am not trying to stall, just trying to figure this all out.
BTW, this is for one non subsidized Stafford loan and one Perkins loan.
I have been reading and I'm still confused about a few words. What does subrogated mean? (We really need a sticky of glossary terms in this forum. lol) And how do I find out if that happened?
Again, I am not trying to stall, just trying to figure this all out.
BTW, this is for one non subsidized Stafford loan and one Perkins loan.
Perkins loan has been subrogated, as the school is the original creditor. The unsub loan was more than likely FFELP loan, which orginated with at state or regional guarantey agency. Subrogation occurs when the guarantor or school, in the case of a Perkins loan, fails to collect. The DOE forces them to give up rights to the loans, paying them off at a penalty rate. DOE then takes over collection activies, tacking on additional fees. When I was collecting subrogation costs were 42.84%.
How do you tell what happened? Wasnt it on NDLS as to who the orginal lender or guarantor was? Really though, at this point in time was has happened is a moot point.
Lynn,
While I do appreciate your help, you seem rather hostile towards people when it comes to Student Loans. This is something I had never encountered when I was doing credit repair for myself and DH a few years ago on different parts of the board.
I'm trying to learn, to figure out what happened and WHY. As in, I am trying to learn the process. Once I understand what has happened, I'll be better able to handle what happens next. I am NOT going to simply accept a phone call from a stranger and hand over personal information. I don't care if they say that they are from the government, I'm not going to randomly hand over banking info, etc.
Look, the point is, I'm trying to learn and you're taking an attitude. Regardless of what my DH did or did not do in the past, he's owning up to it now and is trying to do the right thing.
This is what it says for the Stafford Loan under Servicer/Lender/Guaranty Agency Information
This loan has been transferred to the Debt Collection Service of the Department of Education.
For answers to questions concerning this aid please contact
the service at
Under the Perkins Loan it says:
*I'm not going to put what it says, but it listed the college attended.
Does this mean that the Perkins is not currently with CBE, therefore has not been subrogated? And the Stafford Loan has been subrogated? The phone number listed on the website does not appear anywhere on the letter from CBE. So no, I would say that CBE has not gvalidated their claim just because an outstanding Loan is listed on the nslds website. You said Perkins had been subrogated, and according the the nslds website it's still with the college DH attended. So has it been or hasn't it? This is why I would like CBE to validate, because I have no idea WHICH loan they are trying to collect on!! But you keep saying it's a stall tactic, and I keep telling you that I am NOT using it as a stall tactic.
This is all new to me with Student Loans and confusing.
While I do appreciate your help, you seem rather hostile towards people when it comes to Student Loans. This is something I had never encountered when I was doing credit repair for myself and DH a few years ago on different parts of the board.
I'm trying to learn, to figure out what happened and WHY. As in, I am trying to learn the process. Once I understand what has happened, I'll be better able to handle what happens next. I am NOT going to simply accept a phone call from a stranger and hand over personal information. I don't care if they say that they are from the government, I'm not going to randomly hand over banking info, etc.
Look, the point is, I'm trying to learn and you're taking an attitude. Regardless of what my DH did or did not do in the past, he's owning up to it now and is trying to do the right thing.
This is what it says for the Stafford Loan under Servicer/Lender/Guaranty Agency Information
This loan has been transferred to the Debt Collection Service of the Department of Education.
For answers to questions concerning this aid please contact
the service at
Under the Perkins Loan it says:
*I'm not going to put what it says, but it listed the college attended.
Does this mean that the Perkins is not currently with CBE, therefore has not been subrogated? And the Stafford Loan has been subrogated? The phone number listed on the website does not appear anywhere on the letter from CBE. So no, I would say that CBE has not gvalidated their claim just because an outstanding Loan is listed on the nslds website. You said Perkins had been subrogated, and according the the nslds website it's still with the college DH attended. So has it been or hasn't it? This is why I would like CBE to validate, because I have no idea WHICH loan they are trying to collect on!! But you keep saying it's a stall tactic, and I keep telling you that I am NOT using it as a stall tactic.
This is all new to me with Student Loans and confusing.
QUOTE(imtrying @ May 21 2008, 01:59 PM)
Lynn,
While I do appreciate your help, you seem rather hostile towards people when it comes to Student Loans. This is something I had never encountered when I was doing credit repair for myself and DH a few years ago on different parts of the board.
Nope is not hostility...I just dont believe in sugar coating the facts.
I'm trying to learn, to figure out what happened and WHY. As in, I am trying to learn the process. Once I understand what has happened, I'll be better able to handle what happens next. I am NOT going to simply accept a phone call from a stranger and hand over personal information. I don't care if they say that they are from the government, I'm not going to randomly hand over banking info, etc.
Look, the point is, I'm trying to learn and you're taking an attitude. Regardless of what my DH did or did not do in the past, he's owning up to it now and is trying to do the right thing.
This is what it says for the Stafford Loan under Servicer/Lender/Guaranty Agency Information
This loan has been transferred to the Debt Collection Service of the Department of Education.
For answers to questions concerning this aid please contact
the service at
Under the Perkins Loan it says:
*I'm not going to put what it says, but it listed the college attended.
Does this mean that the Perkins is not currently with CBE, therefore has not been subrogated? And the Stafford Loan has been subrogated? The phone number listed on the website does not appear anywhere on the letter from CBE. So no, I would say that CBE has not gvalidated their claim just because an outstanding Loan is listed on the nslds website. You said Perkins had been subrogated, and according the the nslds website it's still with the college DH attended. So has it been or hasn't it? This is why I would like CBE to validate, because I have no idea WHICH loan they are trying to collect on!! But you keep saying it's a stall tactic, and I keep telling you that I am NOT using it as a stall tactic.
You got a garnishment notice....that letter will say who they are attempting to garnish for. If you dont believe them call the DOE. All I am saying is, forget everything you learned about credit repair, validation, verification, SOL's, and DOLA's.....student loans march to a different drummer. Call the DOE or the CA and ask these questions. Call his school to find out if in fact they have the loan.
This is all new to me with Student Loans and confusing.
While I do appreciate your help, you seem rather hostile towards people when it comes to Student Loans. This is something I had never encountered when I was doing credit repair for myself and DH a few years ago on different parts of the board.
Nope is not hostility...I just dont believe in sugar coating the facts.
I'm trying to learn, to figure out what happened and WHY. As in, I am trying to learn the process. Once I understand what has happened, I'll be better able to handle what happens next. I am NOT going to simply accept a phone call from a stranger and hand over personal information. I don't care if they say that they are from the government, I'm not going to randomly hand over banking info, etc.
Look, the point is, I'm trying to learn and you're taking an attitude. Regardless of what my DH did or did not do in the past, he's owning up to it now and is trying to do the right thing.
This is what it says for the Stafford Loan under Servicer/Lender/Guaranty Agency Information
This loan has been transferred to the Debt Collection Service of the Department of Education.
For answers to questions concerning this aid please contact
the service at
Under the Perkins Loan it says:
*I'm not going to put what it says, but it listed the college attended.
Does this mean that the Perkins is not currently with CBE, therefore has not been subrogated? And the Stafford Loan has been subrogated? The phone number listed on the website does not appear anywhere on the letter from CBE. So no, I would say that CBE has not gvalidated their claim just because an outstanding Loan is listed on the nslds website. You said Perkins had been subrogated, and according the the nslds website it's still with the college DH attended. So has it been or hasn't it? This is why I would like CBE to validate, because I have no idea WHICH loan they are trying to collect on!! But you keep saying it's a stall tactic, and I keep telling you that I am NOT using it as a stall tactic.
You got a garnishment notice....that letter will say who they are attempting to garnish for. If you dont believe them call the DOE. All I am saying is, forget everything you learned about credit repair, validation, verification, SOL's, and DOLA's.....student loans march to a different drummer. Call the DOE or the CA and ask these questions. Call his school to find out if in fact they have the loan.
This is all new to me with Student Loans and confusing.
Call the school to see if they have the Perkins loan.
I was in the same situation (only with Allied Interstate, who, once they got past some of the typical collection agent games and psych outs, were actually very professional and easy to deal with on things like payment terms, due dates, etc. I actually got a christmas card from the woman who was assigned to my loan). The DH should start paying immediately because if he doesn't, within 30-90 days his wages will be garnished. Adjustments can be made to the balance (and my case that actually happened because something was incorrectly calculated) if necessary. Also, once rehab is finished the collection cost goes away. In my case that was about 8K.
Don't mess with this. In some ways its even worse than a tax debt. On the positive side, the DOE ombudsman can help if one of their CAs is violating the rules. And they are pretty responsive.
Don't mess with this. In some ways its even worse than a tax debt. On the positive side, the DOE ombudsman can help if one of their CAs is violating the rules. And they are pretty responsive.
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