I borrowed $1500 in 1992 with a Perkins Loan.

The loan has been transferred to several different collection agencies throughout the years.

My balance in now at $3400.

Any suggestions on how to get this down?

Thanks!

(Get forum!)

What is the breakdown of this loan? Generally they will not compromise on principal and interest. If you are able to settle on it, they will probably settle off on some of the collection fees.

They didn't give me a breakdown. The collection agency (Willaims and Fudge) wants the full amount. No Less!

Isn't there a limit on the amount of collection fees they can tack on? Some federal law? If so- could I take somebody to court?

I called the Dept of Education. They said talk to the "loan holder". It turns out the loan holder is still the college. The college says they can't do anything and its in the hand of the collection agency.

When I collected Perkins for Loyola University, collection fees were 33%. If you go to http://www.ecsi.net/PerkinsMPN.pdf you will see a copy of a Perkins prom note and disclosure statement. You are responsible for all collection costs and late fees. If the agency charges 33% (which is a pretty average amount)legally you are bound to it. There is no such thing as "maximum" when it comes to collection costs. We would at times make arrangements with the lender to settle off on some of the collection costs for a one time payment.

Request a breakdown from the collection agency. Or call the school and ask for one. If the school is near you, drop in and get a copy.

I feel like I'm reading my own story, except that mine were $2,100 in 1990, and Williams & Fudge is demanding $5400. I've gone around with them for 6+ months and just this week, finally got the school to recall the Perkins loans from collections.

Wms&Fudge has been very difficult to deal with. They sent just a fraction of the validation I was requesting, have violated the FDCPA (things such as not showing my tradeline as being in dispute, numerous calls (even after the limited CD letter--the last being at 7 a.m.), have outright lied to the school (saying they haven't had any contact with me, when in fact, I have several CMRR letters requesting rehab, etc. Even when I sent a written request for rehab stating the proposed terms, Wms&Fudge sent a letter saying "we've completed the documents you requested to take care of the status of your loan. Please provide 3 references, sign and date, and the situation will be taken care of..." It was a consolidation application--not anything about rehab at all!

Finally, the director of the school's fiscal department is pulling back the collection (I provided 19 pages of evidence of Wms.&Fudge violations). They've agreed to 1/2 the monthly payment that they'd been asking for a year ago and are even doing a pre-qualification for partial cancellation in advance. Better yet, they've been putting everything in writing and faxing it to me immediately after my requests. On top of everything else, the school's agreement with the CA is that they only owe Wms&Fudge $50, since they haven't collected anything from me. Right now, I'm awaiting the documents that say they loan is back to the $3700 range, plus an agreement that I reimburse the school the $50.

Make sure Wms&Fudge isn't violating. Keep pushing at the school. If their AP/AR office isn't helpful, try the treasurer's office, college dean, president. I couldn't seem to get anyone's attention in the appropriate dept., but when I wrote the director and cc'd in the president, suddenly, they're willing to work things out after all these years! Keep us updated and good luck.