I have searched on the board here but there is so much information it was a bit confusing for me, so I am going to explain my situation and see if I can get some help for my defaulted SL.
34 years ago I took out 2 small student loans. Both original loans totaled about $3,200. I dropped out of college and just did not have the money to pay it back. I left NY state and moved to FL in 1985. I was handed over to a collection agency for the loan very early on after I defaulted. I tried to negotiate with them, but all I could pay was $20 a month and they stated that they had to get $50 a month from me as this was mandated by congress( true?). In 1992 they placed a judgement on my defaulted loan. This lasted for 10 years on my credit report. They have never tried to garnish wages as I have not held a steady job over the years. The judgement is now over and my credit is clean.
Many tax refunds were offset but not all since I am married and husband is the injured spouse, which allowed for him to reclaim his portion of any tax refund. I took the loans out before we were married and he is not obligated for these loans.
I have paid about $4500 back on the original amount of the loan to date from the offsets. I have not received a letter from a collection agency in some years now. The last one stated I owed about 14K.
What portion of the original loan is paid by the tax refund offsets? Does it go to the principal ( I was told this by the collection agency some years back) or to the interest portion?
I want to pay back the loan and stop the accumulation of interest but I was told I do not qualify for any of the programs to bring it out of default. I don't want to pay monthly, I just want to negotiate the balance if it is interest only and pay it in full and close this issue. Can this be negotiated with NYSHESC?
Full Version: 34 year old student loan
QUOTE(mindserve @ Jun 2 2008, 08:17 AM) 
I have searched on the board here but there is so much information it was a bit confusing for me, so I am going to explain my situation and see if I can get some help for my defaulted SL.
34 years ago I took out 2 small student loans. Both original loans totaled about $3,200. I dropped out of college and just did not have the money to pay it back. I left NY state and moved to FL in 1985. I was handed over to a collection agency for the loan very early on after I defaulted. I tried to negotiate with them, but all I could pay was $20 a month and they stated that they had to get $50 a month from me as this was mandated by congress( true?). In 1992 they placed a judgement on my defaulted loan. This lasted for 10 years on my credit report. They have never tried to garnish wages as I have not held a steady job over the years. The judgement is now over and my credit is clean.
Many tax refunds were offset but not all since I am married and husband is the injured spouse, which allowed for him to reclaim his portion of any tax refund. I took the loans out before we were married and he is not obligated for these loans.
I have paid about $4500 back on the original amount of the loan to date from the offsets. I have not received a letter from a collection agency in some years now. The last one stated I owed about 14K.
What portion of the original loan is paid by the tax refund offsets? Does it go to the principal ( I was told this by the collection agency some years back) or to the interest portion?
Probably none. Collection fees, interest and court costs would be paid first.
I want to pay back the loan and stop the accumulation of interest but I was told I do not qualify for any of the programs to bring it out of default. I don't want to pay monthly, I just want to negotiate the balance if it is interest only and pay it in full and close this issue. Can this be negotiated with NYSHESC?
Judgement accounts are not eligible for either rehab or consolidation. Are you sure that the judgement was not renewed?
Interest will not stop accuring until the last penny is paid regardless of you making payments thru any program. Any settlements have to go thru the CA currently handling the account. They may or may not be willing to waive collection fees and maybe some of the interest. You have to talk to them. Keep in mind that you will pay taxes via a 1099 on any balance written off over $600.
34 years ago I took out 2 small student loans. Both original loans totaled about $3,200. I dropped out of college and just did not have the money to pay it back. I left NY state and moved to FL in 1985. I was handed over to a collection agency for the loan very early on after I defaulted. I tried to negotiate with them, but all I could pay was $20 a month and they stated that they had to get $50 a month from me as this was mandated by congress( true?). In 1992 they placed a judgement on my defaulted loan. This lasted for 10 years on my credit report. They have never tried to garnish wages as I have not held a steady job over the years. The judgement is now over and my credit is clean.
Many tax refunds were offset but not all since I am married and husband is the injured spouse, which allowed for him to reclaim his portion of any tax refund. I took the loans out before we were married and he is not obligated for these loans.
I have paid about $4500 back on the original amount of the loan to date from the offsets. I have not received a letter from a collection agency in some years now. The last one stated I owed about 14K.
What portion of the original loan is paid by the tax refund offsets? Does it go to the principal ( I was told this by the collection agency some years back) or to the interest portion?
Probably none. Collection fees, interest and court costs would be paid first.
I want to pay back the loan and stop the accumulation of interest but I was told I do not qualify for any of the programs to bring it out of default. I don't want to pay monthly, I just want to negotiate the balance if it is interest only and pay it in full and close this issue. Can this be negotiated with NYSHESC?
Judgement accounts are not eligible for either rehab or consolidation. Are you sure that the judgement was not renewed?
Interest will not stop accuring until the last penny is paid regardless of you making payments thru any program. Any settlements have to go thru the CA currently handling the account. They may or may not be willing to waive collection fees and maybe some of the interest. You have to talk to them. Keep in mind that you will pay taxes via a 1099 on any balance written off over $600.
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