Why should I send collection agency last 3 pay stubs?

[nikkii]

Need advice badly CB!

 

I have a student loan from NYHESC which has been in default for the past few years. I tried to set up payment arrangements, but NYHESC is sending me to the collection agency GC Services, they agreed to take $55 a month, but they want to put me on the William D Ford Program for 4 consecutive months, which I believe is a consolidation loan. GC Services claim they will restore my credit and remove the offset with the IRS. Currently, I am unemployed, so they are also asking for my husband's last 3 pay stubs which I find to be absurd.

 

Should I ask for the rehabilitation program or hardship program and insist I can only pay $55 a month OR just accept what they are offering me, also why should I send my husbands his pay stubs? This is all new to me but I want to clear it up so they do not continue to take my husbands tax returns. Any advice will be appreciated. Thanks!

[LynnInMN]

GC services cannot restore your credit with consolidation. Actually they dont restore your credit at all...that is all done by the guarantor. And the paychecks are not unreasonable...technically you agreed to balance in full on demand in case of default.

 

If you wish to fix your credit, go for rehab. Once you have completed the rehab, then consolidate.

[nikkii]

Thank you for your great advice Lynn! I tried asking for rehab and they offered me consolidation instead, they told me the amount I want to pay monthly is too low. Is that possible? or should I insist to GC Services that's all I can afford monthly?

[LynnInMN]

How much do you owe??

[nikkii]

I owe about $6500. The IRS took half of my husbands return and paid them $1500 which brought the balance down.

[nikkii]

Just an update, I just spoke with GC Services, they are willing to put me in the rehab program but are insisting I pay $96 monthly, they cant go lower. I can only afford about $60 a month. Is there something I can do to make them accept my payment? Thanks for your advice..

[LynnInMN]

Tell them you want "reasonable and affordable" payment plan. $60 with your balance would qualify for both.

[nikkii]

Thanks again Lynn! Just an update they gave me an income contingent expense worksheet to see if I can be approved for the monthly payment I am requesting to pay.

 

 

Here is an interesting article on "Debt Collectors Profiting From Student Loan Woe"

 

http://www.bloomberg.com/news/2012-03-26/obama-relies-on-debt-collectors-profiting-from-student-loan-woe.html

Edited July 30, 2013 by nikkii

[LynnInMN]

Again, another poorly written article. Non of the agencies are "boiler room" operations. Due to contract requirements, the DOE requires a secure building with area being totally secure.The agency I worked at was in an Executive Center on a lake...a gorgeous building. The office was not fancy but we had good computers, headsets and ergonomic keyboards and chairs. My base to start was $1500 per month but commission started in my 3rd month. My lowest commission was $200 and my highest was $26,000....yes you read that correctly. That was one months commssion check. I won trips Florida, Hawaii, London, gift cards and night on the town. I worked my flowers off, consolidating and rehabbing and never in 10 years did I violate the FDCPA. Good student loan collectors can earn good money but it does take a special breed of person to do it. The 1st year turn over was high but our agency had a huge % of over 5 year employees.Our agency had high standards and trained hard....I was a trainer. I know Allied has a similar program...my old boss is now a VP over there. Top collectors went to conferences and we met people from agencies all over the country....most of the negative comments out on the web were from former employees who broke the law and were fired. Why am I not doing it any more?? Well for starters, the commssion structure drastically changed in the late 90's and my agency relocated to Wisconsin. I moved on a University were I became a financial aid officer.

 

So dont believe a lot of the crap you read out there....

[hodap2001]

I don't think people realize that these collectors actually collect for the American Taxpayers. Where do you think you got your Federal Financial Aid Funding from? The American Taxpayers who foot the bill! So, if you borrow from the Federal Government (aka Tax Payers), you should be prepared for the consequences of non-payment, so these collectors are working for the tax payers in recouping Federal Funds and earning a living wage. This article is poorly written in my opnion.

[hodap2001]

I am an American Tax Payer - If you don't pay taxes that's your business.

 

Why do many other Americans and America visitors, invited or not, get a free ride on so many government programs? What government programs? Each citizen (legal or not) has go through extensive eligibility review before they receive any type of assistance. It is important to note that this is a student loan forum; therefore, there're eligibility requirements before receiving Federal Financial Aid - As such those under the DREAM Act are still ineligible for Federal Financial Aid.

 

What about the fraud charged to recent "University(ies)" in the news who helped create such a mess? What fraud? What Universities - it would be helpful to identify these institutions as they're rigorously monitored by the Department of Education - The only institution in the news lately is ACI, a for-profit institution based on the East Coast which abruptly closed without warning.

 

Where did our compassion go? I never lost my compassion for assisting others which is why I am active on this forum in providing advice to folks regarding their Federal Financial Aid or private student loan.

Edited July 30, 2013 by hodap2001

[LoneTexan]

I would answer but it looks as if my post was moderated. So, I will not.

[evapor8ted]

You can play the long game and see if they lower it but the way I see it is an additional $36/m will fix the credit and the sooner you start the sooner you finish. Can you just cut something out for the 9 months?

[nikkii]

Thanks evapor8ted! I was thinking the same thing. I will give them a call today!