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cv91915 has set up a Go Fund Me page to take donations that will be used for flowers for breeze's memorial, and excess will be donated to a cancer charity in breeze's name.  If you'd like to participate, please go here:  https://www.gofundme.com/breeze-memorial .  If you have any questions about donating or the GFM, please reach out to cv91915.  
 
 
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Sunday, unexpectedly, we lost one of our own.  After a sudden diagnosis of liver cancer just two days before, our very own mama Breeze lost her battle with this disease and passed away on Sunday afternoon.   She passed peacefully surrounded by her family.
 
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We started on this journey fifteen years ago - breeze, Pam, LKH, and radi8.  Through everything that has transpired over the past fifteen years, we have always remained family - and Mama breeze was an integral part of that family.  We will be posting additional information here, as much as we can while still respecting her desire for privacy and anonymity.  For now, while we process our grief, we will close this notice with Godspeed, Mama.  We miss you so much already.

 

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KimShea

Letter from Collection Agency on SL

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So my husband has an extremely old defaulted student loan.  It's old enough it's not reporting anymore.  Yesterday he got a letter from a collection agency.  They want a LOT of money.  100K. Something like 3/4 of this amount is "fees" and way beyond the amount of the original debt.  We so don't have this.

 

What exactly can they do at this point? It was a federal backed student loan, so no SOL, per my understanding. 

 

If the worst they can do is garnish or take taxes, so be it.  However if they can place liens on property, then we are going to have to work with them to attempt some type of payment plan.

 

I'm assuming since it's with a collection agency, things like rehabbing and such are off the table?

 

And can they report this on his credit reports? DOFD is well past 7 years ago, but since this is a new collection, does that even matter?

 

I feel like every time we start to do better, some old stupidness of ours comes back to slap us down again.

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Given the claim that this was a federal loan, it would be in his best interest to start the rehab process.  Being placed with a third-party entity does not take rehab off of the table.  They (the loans) are not going to go away.  And rehabbing voluntarily is better than losing a very large chunk of the paycheck and all of the tax return...once the rehab process has started, he could then shift them to another lender and look at some manner of IBR plan. 

Edited by centex

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Who is the collection agency? Are you sure it was a federally backed student loan? To be sure, check the nslds site.
If it's listed on the site, contact the servicer listed on the site, and get into a rehab program. If its not on the site, then it's private, and would probably be past the SOL.
The reason I'm suggesting to check the site, is I've had numerous student loans, both federal and private, default. While they can balloon quickly, those kind of fees seem really high compared to the original balance. Also, the federal gov't is getting away from using collection agencies. At most, you spend a little bit of time making sure a debt that high should be paid.

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Thanks for the info - yes, I'm 100% certain it was a Stafford loan, and the agency is listed.  It is Central Research Associates, and I can see the debt and previous payments on the myeddebt.com website, which is through DOE.  I think attempting to rehab would be ideal, but it would be nice if we could keep it off his credit reports.  Probably least of our concerns though as opposed to a garnishment or tax refund offset.  He hates talking on the phone, and I don't want to do it myself, as I'm not sure they'll talk to me first off, and 2nd off I want to keep this debt on just one of our reports - not trying to stick it to him or anything, but it would be helpful if one of us could have a decent credit report if we both can't.

If I were to write a letter in response to the one we received and offered a payment arrangement we could afford, do you think that would be helpful? I'm certain with the amount of money they are trying to get from us, that they would determine we could afford much much more than we actually can. 

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On ‎9‎/‎14‎/‎2018 at 11:02 AM, centex said:

Given the claim that this was a federal loan, it would be in his best interest to start the rehab process.  Being placed with a third-party entity does not take rehab off of the table.  They (the loans) are not going to go away.  And rehabbing voluntarily is better than losing a very large chunk of the paycheck and all of the tax return...once the rehab process has started, he could then shift them to another lender and look at some manner of IBR plan. 

Thank you centex - I did assume since it was with collections it was beyond rehab.  It's definitely a federal Stafford loan, and the collection agency is Central Research Associates, which Google says is associated with federal loans.  We will see what can be done to enter a payment arrangement ASAP.

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Just call them. Figure out how much you can afford a month and call them to set up rehab. They don't figure out a payment based on what you owe, but what you can afford. If you didn't co-sign the loan, it shouldn't show up on your report, ever. It probably won't show up on his since its been so long. However, it might once the rehab process is done, but it will show up as a new loan.

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22 minutes ago, tralston3838 said:

Just call them. Figure out how much you can afford a month and call them to set up rehab. They don't figure out a payment based on what you owe, but what you can afford. If you didn't co-sign the loan, it shouldn't show up on your report, ever. It probably won't show up on his since its been so long. However, it might once the rehab process is done, but it will show up as a new loan.

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Only want to reply to this in case someone else searches - been looking into this all day, and this isn't really true.  They use what they call the "15% formula" to determine how much they think you can afford.  It's something like 15% of your AGI and they somehow factor in the size of your family and what state you live in. They don't actually look at your income or expenses, to figure out what you can "really" afford.  However, if you don't feel you can afford the 15% there is a form you can complete to appeal this amount, and that's what I'm going to send them.  Not sure they'll allow it as a huge part of our expenses is Butler University for oldest child, who's there as a Freshman.  I suspect they won't allow this as an expense since she's 18, but I plan to argue that since she's still a dependent for tax purposes, we should be able to count her expenses.  I feel it's a long shot.  But it is an accurate representation of our ACTUAL expenses as compared to our income, vs. the 15% deal, which isn't even close.  Anyway, wish me luck.

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Not all of them use that rule. They didn't for me. They would give me a number, and I would tell them I couldn't afford that. I owed around 80k, and my payment was 5 a month. So they do take income and expenses into consideration. YMMV.



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