I neglected to pay for my student loan dated back in 1998 so yes, my loan is WAY in default. I never had any wages garnished or anything like that now do I get bombarded with collection calls.
Until recently when I decided that I am tired of this coming back to haunt me everytime I try to apply for something.
I contacted higher education so I can get the information of the collection agency that was handling my loan.
I almost fainted when they told me that I now owe 60k on a loan that started out as only 25k back in 1998. They told me that I had to pay 600.00 per month for 6 months to get out of default and to clear my bad name but there was no way I could do this on my salary. I explained that I had other bills and I could not do this. Then they ask me about my pay on the job and what bills I had to pay and I told them and they said I would have to pay $400.00 monthly, which still was too high. I told them the best I can do is pay $250.00 and they said they cannot accept this. I called the higher educatiuon and they said they could not help cause the account was transfered to a collection agency. The collection agensy told me that they was going to garnish my wages if I did not abid and I told them go ahead cause if they did, they would be getting less then what they wanted and would get about what I wanted to give anyway. They warned me that if they garnish wages that they cannot offer me the deal of clearing credit and I said that I had no choice.
In actuality, I could have paid the 400.00 per month, but that would have left me with only $50.00 per month after paying all my other bills and as you know, things always occur on monthly basis.
Next thing you know, human resources on my job is calling saying that a collection agency is requesting information about me and if I wanted them to give the information. I told them no. They said ok but if they get a court order then they would have no choice but to give the information. Then about a week after that, human resources called me gain saying they have been calling every day sometimes 2-3 times a day looking to gather my information about how much i get paid and how long have I been working there and stuff and they told me to tell them to stop calling.
I called the collection agency and they told me they would not stop unitl my debt is satisfied.
They continued calling human resources and the next thing you know I start having trouble on my job that eventually led to me leaving my job.
I have secured a new job now and I really want to work to get this loan paid but am too scared to call the collection agency cause they are too agressive and higher education offers no help.
I still won't be able to make the $400.00 monthly payment cause the job I have pays even less then what I was getting before.
Can anybody offer me a solution to this?
The first thing I want to know is if there is anyway I can work down the price if this loan cause a majority of it is interest and things tagged onto it, the second thing I want to know is if there a way I can pay on this loan at prices comfortable for me and still result in me getting positive credit reports?
I have been looking into consolidation and freedom4life.com was one of the people I have been looking into. I have read to many bad things about lexington so any help would be appreciated.
thanks in advance.
Full Version: can interest get this outstanding?
QUOTE(just_me2008 @ Jun 1 2008, 12:02 PM) 
I neglected to pay for my student loan dated back in 1998 so yes, my loan is WAY in default. I never had any wages garnished or anything like that now do I get bombarded with collection calls.
Until recently when I decided that I am tired of this coming back to haunt me everytime I try to apply for something.
I contacted higher education so I can get the information of the collection agency that was handling my loan.
I almost fainted when they told me that I now owe 60k on a loan that started out as only 25k back in 1998.
10 years of interest, including some of it capitizalized, plus up to 25% in collection fees. Yup, it adds up fast.
They told me that I had to pay 600.00 per month for 6 months actually it is 9 months to get out of default via rehab to get out of default and to clear my bad name but there was no way I could do this on my salary. I explained that I had other bills and I could not do this. Then they ask me about my pay on the job and what bills I had to pay and I told them and they said I would have to pay $400.00 monthly, which still was too high. I told them the best I can do is pay $250.00 and they said they cannot accept this. I called the higher educatiuon and they said they could not help cause the account was transfered to a collection agency. The collection agensy told me that they was going to garnish my wages if I did not abid and I told them go ahead cause if they did, they would be getting less then what they wanted and would get about what I wanted to give anyway. They warned me that if they garnish wages that they cannot offer me the deal of clearing credit and I said that I had no choice.
In actuality, I could have paid the 400.00 per month, but that would have left me with only $50.00 per month after paying all my other bills and as you know, things always occur on monthly basis.
Next thing you know, human resources on my job is calling saying that a collection agency is requesting information about me and if I wanted them to give the information. I told them no. They said ok but if they get a court order then they would have no choice but to give the information. Then about a week after that, human resources called me gain saying they have been calling every day sometimes 2-3 times a day looking to gather my information about how much i get paid and how long have I been working there and stuff and they told me to tell them to stop calling.
They do not need a court order to garnish your wages for federal student loans...it is federally mandated.
I called the collection agency and they told me they would not stop unitl my debt is satisfied.
They continued calling human resources and the next thing you know I start having trouble on my job that eventually led to me leaving my job.
I have secured a new job now and I really want to work to get this loan paid but am too scared to call the collection agency cause they are too agressive and higher education offers no help.
I still won't be able to make the $400.00 monthly payment cause the job I have pays even less then what I was getting before.
Can anybody offer me a solution to this?
The first thing I want to know is if there is anyway I can work down the price if this loan cause a majority of it is interest and things tagged onto it, the second thing I want to know is if there a way I can pay on this loan at prices comfortable for me and still result in me getting positive credit reports?
The overall total will not come down unless you can settle on the account in a lump sum payment. Then they will more than likely waive some to all of the collection fees.
As long as you are in default, the account stays negative. They were offering an opportunity to rehab which would have cleared the guarantors negative tradeline. Rehabbing is the only option for the guarantors tradeline.
Right now with current interest rates, your monthly interest is running about $340 per month. So obviously you would need to pay more than that just to make any dent in the principal.
I have been looking into consolidation and freedom4life.com was one of the people I have been looking into. I have read to many bad things about lexington so any help would be appreciated.
Dont bother with freedom4life. They cannot do anything that you cannot do yourself plus most collection agencies will not work with such companies.
thanks in advance.
Until recently when I decided that I am tired of this coming back to haunt me everytime I try to apply for something.
I contacted higher education so I can get the information of the collection agency that was handling my loan.
I almost fainted when they told me that I now owe 60k on a loan that started out as only 25k back in 1998.
10 years of interest, including some of it capitizalized, plus up to 25% in collection fees. Yup, it adds up fast.
They told me that I had to pay 600.00 per month for 6 months actually it is 9 months to get out of default via rehab to get out of default and to clear my bad name but there was no way I could do this on my salary. I explained that I had other bills and I could not do this. Then they ask me about my pay on the job and what bills I had to pay and I told them and they said I would have to pay $400.00 monthly, which still was too high. I told them the best I can do is pay $250.00 and they said they cannot accept this. I called the higher educatiuon and they said they could not help cause the account was transfered to a collection agency. The collection agensy told me that they was going to garnish my wages if I did not abid and I told them go ahead cause if they did, they would be getting less then what they wanted and would get about what I wanted to give anyway. They warned me that if they garnish wages that they cannot offer me the deal of clearing credit and I said that I had no choice.
In actuality, I could have paid the 400.00 per month, but that would have left me with only $50.00 per month after paying all my other bills and as you know, things always occur on monthly basis.
Next thing you know, human resources on my job is calling saying that a collection agency is requesting information about me and if I wanted them to give the information. I told them no. They said ok but if they get a court order then they would have no choice but to give the information. Then about a week after that, human resources called me gain saying they have been calling every day sometimes 2-3 times a day looking to gather my information about how much i get paid and how long have I been working there and stuff and they told me to tell them to stop calling.
They do not need a court order to garnish your wages for federal student loans...it is federally mandated.
I called the collection agency and they told me they would not stop unitl my debt is satisfied.
They continued calling human resources and the next thing you know I start having trouble on my job that eventually led to me leaving my job.
I have secured a new job now and I really want to work to get this loan paid but am too scared to call the collection agency cause they are too agressive and higher education offers no help.
I still won't be able to make the $400.00 monthly payment cause the job I have pays even less then what I was getting before.
Can anybody offer me a solution to this?
The first thing I want to know is if there is anyway I can work down the price if this loan cause a majority of it is interest and things tagged onto it, the second thing I want to know is if there a way I can pay on this loan at prices comfortable for me and still result in me getting positive credit reports?
The overall total will not come down unless you can settle on the account in a lump sum payment. Then they will more than likely waive some to all of the collection fees.
As long as you are in default, the account stays negative. They were offering an opportunity to rehab which would have cleared the guarantors negative tradeline. Rehabbing is the only option for the guarantors tradeline.
Right now with current interest rates, your monthly interest is running about $340 per month. So obviously you would need to pay more than that just to make any dent in the principal.
I have been looking into consolidation and freedom4life.com was one of the people I have been looking into. I have read to many bad things about lexington so any help would be appreciated.
Dont bother with freedom4life. They cannot do anything that you cannot do yourself plus most collection agencies will not work with such companies.
thanks in advance.
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