Hi- First off, I'm really sorry this is so long, but the CA we just spoke with was a total JERK!

My husband has a student loan that is currently in default totaling 2437.98. The collection agency called us in Feb, 04, at which time we offered to set up a repayment plan. They said that we had to pay the total amount due, and would not accept a payment plan. Because we didn't have an extra $2500 lying around, we haven't paid anything.

We didn't hear anything from them until today (no written or phone correspondence), when they left another message. My husband called them back, and let them know that he is happy to pay b/c we are trying to resolve our credit issues, but can't pay the whole amount at once. We asked that they send us a letter totaling the amount due, and the CA refused to send us a letter or give us their address.

The CA initially told my husband that they are going to garnish his wages. However, after talking further, the CA agreed not to garnish his wages, and instead set up a repayment plan. They still refuse to send us anything in writing or agree upon any terms or repayment, and instead we are supposed to call them back on Thursday (What?). It seems so shady to me, and we don't want to pay without seeing something in writing, even though we are aware of the debt. We asked about a rehab program, and he said that the loan does not qualify because it was from a private lender.

Can you offer any advice on how we should handle this? We really do want to resolve the debt, but are unsure how to approach because they are so unwilling to work with us.

Thanks!

Id call the original lender...get an answer that way about how much you owe.

Is the CA reporting on your reports? If it is negotiate to get it deleted with payment. Do not make payments over the phone.

Others will chime in on this I hope....my loans are in rehab but I owe alot more than you do and my loans are government loans.

You need to find out who the oc is and that will tell you if it's an alternative or a federally backed student loan and eligible for rehab or consolidation.

Ask dh if he remembers who this loan was with or if he has the original paperwork. You can try the US Dept of Ed website and see if this loan shows up in default status. That will tell you it's a federally backed loan. If the loan is not there, then it is probably an alternative student loan such as a SallieMae or Terri signature loan.

To my knowledge, only federally backed sl's can be garnisheed without a court hearing or be subject to 'offset' which is where they snag your income tax return each year until it is pd in full. If this loan is actually a signature student loan then it is viewed as consumer debt but you still have rights.

www.NSLDS.Ed.gov

Thanks for the feedback on my posting. I found out that the original lender was Wells Fargo, and the loan was obtained via the Student Loan Finance Corporation. Would this indicate that the loan isn't a federally backed loan? I'm still going to have my husband call, but thought I'd throw that out there...

Thanks!