Defaulted on my student loan

[Sugarcoated]

A collection agency sent a questionaire to "evaluate" my financial position and calculate repayment terms, and they want it in 5 days. They're asking for copies of bills, pay stubs and all "open accounts". Aside from the fact I can't pay them back, at least the monthly amount they'll probably want, I don't feel comfortable giving them all this information. Has anyone been through this, or, are there any legal people who know what I should do, or what I'm in for? What they can or can't do to me if I don't pay at this time?

[bicentennial_baby]

1. Did you try to negotiate with your lender before defaulting?

Rule #1) Always talk to them first. Always.

[Sugarcoated]

2. I did

last year, but they wanted my account number or pre-written checks or something. I don't know if you'd call it a true negotiation, but I did contact them. I also filled out a deferment request, which was denied.

[Sugarcoated]

3. I'm worried

:-(

[LostinVA]

5. Is it Federal or Private?

The latter? They can and will sue you in Court. The former? They can sue you, stop you from getting any gov't $$$ (FHA loans, Government jobs, etc.), garnish your income tax, etc. You often can't get professional licensure. Both will go on your credit report. Both will stop transcripts from being released and even acceptance to grad school, etc.

I wouldn't mess with the credit people -- don't give them any info. I'd deal with the student loan place directly -- from what you wrote, you really didn't talk to them. If it's Federal or State money, call your Congresscritter for help.

They make you pay your student loans.

[bicentennial_baby]

8. +1

[Sugarcoated]

14. How do they make you if you don't have the money in the first place?

I posted below all is in my husband's name and I don't work. FHA loans, grad school not an issue. What do you mean by "transcripts being released"?

[LostinVA]

17. If you ever need a transcript for a job or something -- your school won't release them

I don't know how the property law works if you're in a community property state, and I'm not sure how the IRS can do it. I guess they could still take your refund or put a lien on the house. Your credit and your husband's will get a black mark, so that'll mess you up.

Look, I'll be honest: you owe the money. I owed it and paid it. I couldn't even go to law school like I wanted because I didn't want more loans to repay. I ate Ramen and eggs for weeks at a time, I didn't pay for health insurance, and didn't go on a real vacation for ten years. I didn't even own a car for many years. I scrimped and paid it. Why don't you just pay the money back or try to make a deal? If you own a home, they'll get the money somehow. If teh sue you, you HAVE to pay -- you can't ignore a court judgement.

I have been very poor in my life, and I still don't ahve much money, but I think you should try to see what you can do to fix this, instead of how to avoid it, because they'll get you sooner or later, and you will have HUGE penalties.

[Sugarcoated]

19. I asked for info not advice or lectures

They were opposed to the amount I could pay. They were extremely rude and harassed my Mother in law. It seems to me your saying things you don't really know in order to shame me into "just paying". You don't know me or the details of my life.

[bicentennial_baby]

20. But she is correct

They will never let you go. Ever. That's the contract you signed when you got the loans.

[Sugarcoated]

21. How do you get that I'm not going to ever pay it back?

I can't pay it right now, or the amount they want every month. Again, I'm not asking for your advice or moralizing.

[bicentennial_baby]

22. You're asking for advice, but you don't want advice? Ooookay

Every day you don't pay, the interest goes UP UP UP. Think about it.

I'm done with this thread. Good luck, I guess.

[Sugarcoated]

24. Where did I ask for advice?

I didn't. I asked for information. Why do people like you feel the need to wag the finger at others and shame them?

[LostinVA]

29. Advice and info are the same thing in this context -- you are being ridiculous now

:eyes:

[Sugarcoated]

37. You really get into that "shame on you" thing

Info and advice are not the same thing "in this context".

[LostinVA]

39. No actually, I haven't been doing that at all -- but you know that

Interesting you're reading that into what I wrote.

Hmmmm......

[Sugarcoated]

45. How bout them Phillies?

[Tangerine LaBamba]

74. I was wondering

how long it would take you to quit on this whiner.

Advice, but NO LECTURES, dammit!

What's the difference? I guess advice is what you like and lectures are what you don't like, right?

Hiya, sugarpants.................. :hi:

[LostinVA]

27. You got loads of good advice -- get off the computer and make calls

I couldn't pay my amount either, so I went without and I got a second job. I lived like a pauper FOR TEN YEARS.

No one on here is moralizing -- we are giving you the advice you don't want.

And, everyone giving you advice had or have huge student loans.

[bicentennial_baby]

30. I have $30,000, starting in October!

Yaaaaay!

And that's before Grad School...kill me now. But, I'll pay them, one way or another. :)

[LostinVA]

33. That's why I didn't go to law school, and I REALLY wanted to go

I had 30k already (this was 1987), and would ahve added on about another 100k. I just couldn't do it.

[bicentennial_baby]

35. Yeah, I'm going straight to PhD, b/c

at least then I'll get a stipend and TA $, and it will be less painful than a Master's, overall. But yeah, I'll be paying till I die, I imagine. That's why I joined the FB group "I picked a major I liked and will one day be living in a box" :D

[LostinVA]

38. No $$$ for law school

:sigh:

[bicentennial_baby]

41. Yep

I considered that, but nooooo. I'm considering this program, actually: http://www.simmons.edu/gslis/academics/programs/phd-lis.php

[Debi]

43. Geez, I was going bonkers w/$10,000

I would be a monster stress-ball w/$30,000!

My defaulting on my loans screwed my credit score - my ability to get a credit card or to open a checking account w/over-draft protection - even get a cell phone! Everywhere I turned not paying that stupid loan was messing me up!!

SO glad it's over!!

Good luck :hi:

[LostinVA]

48. Gawd, the feeling when I sent off that last check!

[Sugarcoated]

40. There you go again.

Manage your own life, don't try to manage mine.

[Debi]

47. You did not just pull a Ronald Reagan on this board

:rofl:

If you didn't want to know what people thought you should not have posted about your situation on a public site.

The advice you received is sound.

Thank you is a more appropriate answer.

[LostinVA]

51. We are almost jinxed!

Look what I wrote!

[LostinVA]

49. Then don't post an OP asking us for help -- and, I didn't go do anything

:wtf:

[GReedDiamond]

90. As I have recently posted on other similar threads, within the last few days here...

...I was in default on a student loan for 15+ years. I had refused to pay back the loan because the owner of the "trade school," a foreign national, non-U.S. citizen, had stolen a vast amount of the loan payments and moved the money to India. The school subsequently closed before I "graduated."

Here's what I went through:

1) I was initially harassed by people from the "California Student Aid Commission," who acknowledged the fraud, but refused to dismiss the loan.

2) After a couple of years of that, they sold the "loan" to a private, third-party collection agency. They commenced harassment proceedings, to no avail. They sent me many letters and made many phone calls to me promising to sue me and garnish my wages, and so on.

3) After a year or two of that, the loan would be sold to another collection agency. Wash, rinse, repeat, for fifteen plus years.

4) There were ultimately ten or more collection agencies on the attack (one at a time).

5) During all of this time, enough money was garnished from tax refunds I should have received, to more than pay back in full, the original amount of the loan. But with penalties and interest, raised ultimately to 23%, they still wanted over four times the principle, 15+ years later.

6) Since I was self-employed, they could not garnish my wages. Tax refund garnishments were, year-to-year, deductible on my tax returns, according to my tax guy. Consult your tax professional for advice in your case.

7) Because I faced, literally, within a ten-or-so years' span of time, a $100,000.00+ penalty on default, on what was originally a $4000.00 loan in 1989 (at the current 23% penalty interest rate), I almost settled for a reduced amount from the last (and only) collection agency I negotiated with, but when they failed to put the agreement in writing, I refused to pay.

8) Very shortly after that, I finally found a Federal level (EdFund) bureaucrat, who helped find the absolute proof that the loan should be dismissed. It was, and I was also refunded all tax garnishments - without, of course, any interest.

Good Luck, because there is no statute of limitations on student loans. If you cannot prove school closure and/or fraud, or otherwise have a documented legitimate excuse for non-payment, you are most likely screwed. Sorry.

There are also no lawyers willing to represent such a case, as far as I know. Every lawyer I ever spoke to (cold-called out of the phone book, so there may be specialists if you can afford them), about my case, reacted with stunned silence...and offered zero help or advice. Like I said, sorry.

Lastly, I think that the "I can't pay it now" argument will not work. They will just keep adding usurious amounts of penalties and interest to where, you will never be able to pay them. So the only alternative is to make a good faith offer of a minimum amount you can pay, no matter how small. Document everything you do, and NEVER BELIEVE ANYTHING a collection agency goon tells you, whether in a letter received, or over the telephone.

ON EDIT: Did you apply for/go through "forebearance"? If not, look into it. It buys you some time, where the penalties are turned off, and you don't have to pay for a while.

[Debi]

23. But you borrowed money and agreed to pay it back

and now you can't/won't.

I've been where you are - I too defaulted on my student loans. I lucked out and was able to negotiate a lump sum settlement (lucky b/c I came into a lump sum).

Just because you don't work outside the home and put all your property into your husband's name shouldn't stop you from being responsible for fulfilling your obligation.

Being rude to other posters b/c they did what they promised to do doesn't change your situation. I hope you can find the money to pay your loans back. That's what you guaranteed you'd do when the lending institution gave you the money.

[Sugarcoated]

26. Okay, let's get a few things straight

I asked for information, not moralizing and advice, with a bit of shaming thrown in. My calling people that isn't rude.

And, again, I never said I wasn't going to pay back the loan.

[LostinVA]

31. You got the info and advice -- tehre is NO moralizing in this thread

You don't get it, even though we keep telling you: THEY WILL NEVER LET YOU GO.

[Debi]

34. You've also made it clear that you've done everything in your power to ensure

that none of the money can be collected from you.

Putting all your property into your husband's name, filing separate tax returns, not bringing in any income.

I don't know why you think I'm shaming you, I went four years w/out paying my loans, however I wasn't as creative w/ my non-payment as you have been.

Glad to hear that you eventually intend to pay what you owe.

[bicentennial_baby]

36. Bingo

Glad you noticed that as well. Clever.

[sniffa]

50. Well he married his dream girl, he married his dream girl

but she didn't tell him she was planning on not paying her student loans.
Now instead of working and being responsible
the government has gone and placed a lien on their home.

[LostinVA]

52. I hate those commercials

[bicentennial_baby]

53. But Sniffa's new version is teh funny

[Debi]

57. EARWORM!!

:nuke:

[madeline_con]

92. That's too funny!

Put yer pirate hat on! :rofl:

[Debi]

54. Won't change the debt owed. n/t

[LostinVA]

44. Yeah, I noticed that, too

I'm not shaming anyone, either. I'm just saying you gotta pay, because they will make you, and if you wait, you'll just ahve to pay more.

Projection? I dunno.

[Debi]

56. Offers of help from people who have been in the same situation should be welcomed

wouldn't you think?

[LostinVA]

76. Yup -- there's some good, solid advice in this thread -- all the same

We've been through the suckiness of SL lenders.

[Sugarcoated]

55. That's right

They're not going to get my tax returns or my house. Staying home has to do with a son with a learning disorder and a daughter who moved back home with her two kids, I babysit so she can work part time so she and the kids can have health insurance. Among other complexities that are none of anyone's business. But none of this is relevant, really, because I really did not ask for you or anyone else to judge me. Life is not black and white.

And it's nice that you're glad of what I intend to do.

[Debi]

59. You got their money but they are not going to get yours...got it.

As for providing for children w/disabilities you are not alone in this world and many people (me included) have done so AND paid back their student loans.

If your life challenges are no one's business PLEASE quit spelling them out in detail on a public site for all to see. Nobody asked about your home situation, you have volunteered everything here.

[Debi]

61. dupe

[Debi]

62. double dupe

ish

[Sugarcoated]

64. You guys really light to fight, don't you. Jeebus

Meannies

[LostinVA]

75. YOU are the one being combative, which is really, really weird

My first posts to you gave you solid legal advice, then you started attacking me for NO REASON. Then, you broke DU rules by making personal attacks against me.

To quote my father: You are a real piece of work.

And Sallie Mae is known as THE worst of the lenders. They will make your life a living hell. Call your Senator and tell them to help you get into the PA rehab program. Like I told you two hours ago.

[Tangerine LaBamba]

78. Wait .........

You're a GRANDMOTHER with unpaid student loans?

How old are these loans and why haven't you paid them before?

By the way, putting everything in your husband's name is of no help to you - courts see right through that ruse and routinely disregard it, so, no, you're not immune from garnishment....................

[bicentennial_baby]

79. THANK YOU!

:applause:

And, :hi:

[Tangerine LaBamba]

81. Unbelievable, this whole thread -

I read the whole thing - and I still don't believe it.

Well, good people tried, and that's what DU does best.

Sometimes you're the windshield, sometimes you're the bug..........


heh heh heh

:hug:

[madeline_con]

94. Actually, it's his wages that will be garnished.

Man, just wait till...

[Tangerine LaBamba]

95. And a lien placed on the house,

or any real property "he" owns.

(And that .gif of yours is hysterically funny!)

People have been doing this forever, thinking they're so smart, they're outsmarting the law, but what they don't realize is that extra-judicial notice is taken of this kind of stuff, and the law just hammers them.

Like everyone who's ever been pulled over for speeding thinks that telling the cop that they have diarrhea is an original line.

But, what's troubling about this thread is that the OP has gone to all the trouble of re-titling property, filing individual tax returns, and the law is going to see that for what it is - bad faith - and really, really nail them. Clearly, there was a plan not to pay back the money.

Those people ALWAYS get their money or else they get everything the borrower owns. With attachments on all future earnings until the debt is paid off...........................

[madeline_con]

96. The loans must be huge, then add interest.

This might not be pretty, they could seriously all land on their butts in the street. :(

[Tangerine LaBamba]

97. The OP talked about her family,

that her daughter had moved back in, with her children. So the borrower is a grandmother, which suggests to me - and I may be wrong - that these loans are long-standing and I can't even imagine the interest, compounded and compounded.

Student loans are a necessary evil, but they're like herpes - you can never get rid of them. Even if you go into bankruptcy, student loans are exempt. They're still there.

And I just read that Norm Coleman - yes, THAT Norm Coleman - still has approximately $40,000 in outstanding student loans! Can you believe that?

[madeline_con]

98. We can't assume she borrowed when she was young.

I just finished my bachelor's at 50. But I only owe $4000.00 THIS TIME.

I had previously defaulted, and had my wages garnished for a couple years before I could borrow or apply for grants. I learned the hard way. :(

[Tangerine LaBamba]

99. That's why I said "I may be wrong about this,"

so I hope it's a small sum and that she can take care of it.

Congratulations!! That's quite the accomplishment. Take a bow.

Sorry about the previous experience, but, yeah, some learning comes hard. I was so lucky to have parents who had saved for my education, plus I always got jobs while in school.

But, today, with the costs what they are, I can't imagine how ANYONE can put a kid through school.

Anyway, again, congrats!!!

:toast:

[madeline_con]

100. Thanks. I'm hoping for a Bright Futures scholarship for my son.

He has to maintain his grades, tho.

[Starry Messenger]

106. Oh, wow.

Good catch. o.O

[LostinVA]

25. I gave you info and only info -- you just want it sugarcoated

And, that isn't a pun.

I know the details of MY life, and I had nothing, and didn't have anything for ten years so I could pay -- they will hunt you down and they will stick your ass with a HUGE judgment. They are not legally allowed to bother your MIL, but debt collectors do that, that is why, LIKE I AND MANY OTHERS SAID, deal with the loan people. You should be calling your Congress wo/man or State leg right now, instead of getting upset that the truth was told you: THEY MAKE YOU PAY LOANS BACK. They don't even get discharged in bankruptcies. You HAVE to pay them, so why pay twice as much as what you have to?

[Sugarcoated]

32. I know I HAVE to pay them

I never said I WASN'T going to PAY THEM. I don't know why you feel the need to keep insinuating that or somehow judging what will or won't do in the future. You're really assuming a lot. I appreciate you responding to the thread, but I don't appreciate the assuming and judging of me.

[LostinVA]

46. Well, you heavily implied it

With all the separate filing of tax info and putting property in your husband's name. Fine. And, I haven't judged you or shamed you at all. You are projecting a hell of a lot. I gave you good, solid advice on what to do.

[Name removed]

58. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Debi]

63. She gave you info/advice

you just didn't like what it was.

That's no reason to break DU rules.

[LostinVA]

73. I just saw this -- you are a piece of work, aren't you?

:eyes:

[Th1onein]

93. Write me privately. I worked for a collection agency.

I know the law and I know what you can do and what you can expect. I'll be glad to give you info and no lectures.

[Sugarcoated]

104. Sincere thanks

:)

[Debi]

28. After paying to the collection agency for a year I was actually FURTHER behind on my defaulted loan!

b/c they were charging incredible 'processing' and 'contact' fees!

Finally was able to negotiate directly w/the original lender and they tossed out all the b/s fees from the collectioin agency.

Still had to pay every last dime of the loan off - but got rid of about 6 years of interest/fees!!

[hobbit709]

4. Never give a collection agency any info.

If they get your bank account info the bastards will clean you out.

[Sugarcoated]

15. I didn't know they could legally do that

bastards are giving it a shot.

[hobbit709]

16. 90% of what collection agencies try to do isn't legal

They try to intimidate you into doing something that they can't make you do but if you voluntarily give them anything then you're screwed.

Check this site out
http://www.budhibbs.com/

[nini]

6. don't give them any info and go find Legal Aid somewhere

Did you try to get a forbearance with the lender?

Get the legal help though

[mcctatas]

7. I see that you were denied a deferment, I was also denied a

deferment once but I appealed that decision and was granted a deferment for 12 months on my second try (of course since I still won't be in a position to pay them back, I am going back to school and took out more loans). In any case, I would appeal the decision ASAP, best of luck to you :hug:

[LostinVA]

9. Yeah, you ahev to pester them about anything -- they don't want to budge an inch

They will, if you pester, or get your Congresswo/man involved.

[Sugarcoated]

10. What I don't know is if I'll be able to do anything like that

once the loan is in default.

The thought of paying on a percentage of the interest kills me.

[mcctatas]

12. I was able to after it was in default but before there had been an

attempt to collect by an outside agency which is why I suggest that you do it in the next 5 days, worked with Great Lakes Higher Education Corp.

[Sugarcoated]

11. Some worries I have

I know they can take your tax return money, but I don't work, and besides, my husband and I file separately. He insists they can't take his if he files separately, but I wonder.

Our house is in my husbands name, so they can't take our house, right?

I'm a stay at home mom, so I have no wages to garnish, but can they go after my husbands?

They were calling my mother-in-law thinking I lived there or something, until finally, something she said made them stop. I'm afraid they may start calling other family.

[haele]

110. You have to watch that, he may have to file an "injured spouse" return -

The IRS went after me for my husband's student loan that his ex ran off with; he had been paying back the minimum automatically through an old account out of state before he got disabled and forgot that he still had about 1K of loan outstanding when he closed out that account to pay medical bills. With no income on his side while he was going through the SSDI process, they eventually went after us after tracking down his "new" bank account - our joint account. I had to file an "injured spouse" form to keep them from pulling out any money. If you live in a joint assets state, even if you file separately as a dependant, they can potentially go after the spouse through taxes or they can take legal action against you if they think it would be profitable enough for them.

This is the most important thing I can think of to help you from what my husband went through - make sure everything is in writing. If the loan "owner" does everything online, make screenshots and printouts of everything. Don't agree to anything over the phone, make them send it to you. And if you possibly can, make the minimum payments (usually around $45 a month or so for the smaller loans) just to keep the IRS from garnishing your wages - you can be out of default if you make at least 4 payments, and that will help your credit almost immediately.

Depending on how much of the loan has already been paid off, once you're out of default, you might be able to work with your loan servicer about some of adjustments or write-downs due to hardship, but try to make sure you can at least get them something to keep you out of default until you have enough to pay it off. Stick to your guns, they can accept a minimum payment if you're firm (I can't say they have to, since they are federal gumm'nt loans) and you have made some effort in the past to keep a payment up.
Also, have you checked into government grant money - if your husband is self-employed and you're caring for your daughter's kid so she can work, you might be eligible for a grant (not a loan) that might be enough to help you get out of default, even if it won't pay off the loan. There will probably be some tax implication because it's "free money", but it might not be too bad if you plan ahead for the tax burp. It would be easier than having to try to recover taxes pulled from your husband when they finially decide to get you out of default the hard way.

Here's hoping you and your husband come into enough money to be able to get clear - student loans might as well be Mafia loans.

Haele

[Sugarcoated]

111. I took out the loan before we were married

so they can't garnish his wages. Thanks to some knowledgeable people here I've learned they can't put a lien on our house or take a percentage of his taxes. If I had taken out the loan while married, it might be different. It's a great weight off my mind to know that in the interim, while I'm deciding how I'm going to proceed, they can't take our home or something. I'm from PA, btw.

My husband isn't self-employed, but I'll look into the grant money you speak of. I had no idea that was even an option. I've found, for the most part, it's hard to get some of this information, and I did some major searching a year back when our deferment ended and they wanted this huge monthly payment, something in the $800 range. In the past, the payment plan was less than half that. Until I'm free to work, it's just not doable. It's most relieving to know that they can, and will, accept whatever I can afford, and it will not only take it out of default, but keep it out. The principle is not too outrageously high, thank God. And that Obama community service plan, how wonderful is that if it gets passed? I, and I'm sure many others, would gladly do community service to pay some of this off. It was one of the many, many reasons I voted for him.

Sincere thanks for the compassionate response Haele.

[ceile]

13. Oh boy.

First, do NOT give a collection agency any financial info-deal ONLY with the loan people. Second, find a legal aid agency as suggested up thread. Third, if you have a state loan-send them what you can afford-even if it's only $5. Don't know PA's laws, but here in TX if you're making an effort to pay (I can't afford to send them the monthly amount they want so I send them what I can afford) that should keep them at bay.
Good luck!

[LostinVA]

18. If it's a State loan, she can probably call her State leg person for help

[mainegreen]

42. May any payment you can.

Seriously, even three dollar payment placates them a lot.

[Sugarcoated]

60. Well

this turned into the Spanish Inquisition.

[Debi]

65. Seriously?

:nopity:

[Sugarcoated]

66. I be so serious

seriously

:hi:

[Sugarcoated]

67. dupe

[flvegan]

68. Dammit!

I got to this one late.

x(

[Debi]

69. I thought you were dead, Flazarus.

Dead men owe not debts. Or is it dead men pay no bills. Whatever - :crazy:

[rateyes]

70. Nooooo. DO NOT. I repeat, DO NOT

give a collection agency one damned scintilla of information. Deal directly with the lender. Your contract is with the lender. The collection agencies' contract is with the lender. But, you have no contract with the collection agency. Fuck 'em.

But, DO keep on trying to work out something with the lender. As I understand it, and I'm no lawyer, a student loan is an unsecured loan, meaning that there is no property on which to foreclose or against which to put a lien. The lender would have to go to court to try and collect. I would think that the lender would much rather save the cost of having to do that if you show that you are willing to work something out with them.

If I were you, I would call a lawyer familiar with this kind of litigation and explain to him/her the situation, and see what advice he/she gives you. But, I wouldn't give out ANY bit of the info the collection agency is asking for to ANYONE...including your lender, without first of all talking to an attorney.

If the collection agency doesn't have that info, then neither does your lender, or the agency would already have it in their possession. Don't give anything to anyone that they are not legally entitled to have.

That's my advice. But, it's only advice.

[Sugarcoated]

71. That's what I was thinking

It didn't seem right that they wanted such personal info. I just don't know if it's too late to deal with the lender, which is Sallie Mae, so it must be Federal, but I'm going to talk to a lawyer I think. I appreciate the kind attitude . . . and thanks for not judging me.

[LostinVA]

77. Not ONE person in this thread judged you, although you judged and insulted us

What a weird attitude.

[quakerboy]

87. Sallie mae can be federal

or private. I know this as fact, and much to my own dismay.

[Inchworm]

82. Bingo

I don't understand all the commotion upthread. I probably missed some skimming over it. :eyes:

Appeal the deferment if you can. Try all you can NOT to let the loan default. It truly makes paying it back very difficult.

I had a loan from my Associates college default during my divorce. When I tried to continue for my bachelors, I found that the defaulted loan enabled my first school to hold all transcripts hostage. In order for me to get a degree and be hirable I'd have to start at the very beginning again. (or... pay $275/month for 9 months to get loan out of default).

If I could get loan out of default long enough to simply enroll in college, I'd have my Master's and start paying it back. As it is now, I'm basically stuck on the bottom rung. I've been "negotiating" for about 5 years. It sucks.

Surviving off about $8k a year is quite the challenge. I still haven't given up.

Right now an admissions person is corresponding with Virginia Foxx ( :puke: ) to see if there is anything that can be done to help. I went through state officials and she in my last hope. Well, that or the freakin lotto.

Bottom line. Stay on top of it and keep it from defaulting. If it is several loans consider consolidating through http://loanconsolidation.ed.gov/ . It may or may not buy you some time. Hell, had I had enough sense through divorce I'd have quickly become a student to avoid all this crap. I'd be 3-4 years into a career.

Good luck, Rateyes.

:hug:

[BuelahWitch]

84. I was going to give her the same info about loan consolidation

:hi: Definitely look into that. The Direct Loan people have many more programs than companies like Sallie Mae. They will let you defer your loan due to hardship, or you can do a full forbearance or partial payment forbearance. Difference is that your interest on the subsidized loans stops with a deferment, but not a forbearance (unsubsidized loans accrue interest no matter what).

[quakerboy]

88. They are supposedly denying consolidations like crazy

right now. I looked into it myself, and spoke to the aid dept at my old school. Apparently the whole structure of private loans has changed in the last year. You have to pay while still in school. And, at least according to them, it has become damn near impossible to consolidate this year.

[BuelahWitch]

89. Not federal loans

If that's what she's got. If she's got private ones, they won't let her consolidate those at Direct Loans, but any Federally backed loans they will.

[Zavulon]

108. I've read the entire thread, and this is the best advice I've seen. (NT)

[philosophie_en_rose]

72. Some suggestions.

1. Contact a legal aid program in your state.
2. Find the forbearance/deferrment requests online and fill them out. It's worth it, even if you've defaulted.
3. Document every time they contact you, because third parties have to follow certain procedures. (If they don't, you still owe, but you may be able to go after them under the FDCPA.)
4. Get everything in writing.
5. They are probably trying to get information for garnishment purposes. It's up to you to decide what to share.
6. Figure out how much you can pay and contact the lender directly. Some is better than nothing.
7. Request that they prove that you owe this debt and they're entitled to collect it. They should give you information, before you trust your information to them.
8. Do everything possible to pay the debt. (obviously)

If you ignore them, they can go to court to get a judgment against you or possibly prevent you from getting certain jobs or otherwise make your life hell. They will never leave you alone.

[MorningGlow]

80. Collection agencies = teh evil undead

They cannot be killed. I support others' advice on the thread to go directly to the original lenders and work out some sort of deal, and if they refuse, try again. The goal here is to get it away from the collection agencies at all costs.

I didn't default on my student loans, but I've been an unwilling witness to another person's tussle, and it hasn't been pretty. We bought our present house 3 1/2 years ago. The people who lived here before were renting; they moved just down the road, to the next village. However, the collection agencies didn't get the change of address--they have come to our door, have peered in our windows when we weren't home (our neighbor saw them), called incessantly, and always refuse to believe us when we tell them we are NOT the person they're looking for, nor do we know her. It's been a nightmare, and they're not even looking for us! All the letters we have to "return to sender" weren't half as bad as getting calls nonstop. Because if one collection agency fails to find the defaulter, it moves on to another agency. And another. And another.

In fact, after a couple of months of relative quiet, I got ANOTHER call from ANOTHER collection agency just a couple of days ago, and I know this means that the nonstop calling is going to start again until I threaten them with bodily harm (and give them the defaulter's new address and phone number--because yes, I am able to look it up in our phone book even though they are apparently incapable of same). The other posters are right when they said they'll never let you go. So I'd say negotiate, and do it as soon as possible. Good luck. :hi:

[rateyes]

83. I had the same kind of problem when I moved to GA.

Kept getting calls for a guy named Freddy (I won't use last name). I finally called a judge friend of mine to ask what to do. He said that in the state of GA one could record calls without the other person knowing it--no expectation of privacy if you are one of the parties to the conversation.

He said to buy an inexpensive device to hook up to the phone with a tape recorder. The next time I got a call from a collection agency, he said to start the taping machine and tell them that I was taping the call, and that they were never to call again, and that if they did I would use the recording as evidence in a lawsuit against them. He said that if they replied, "You can't do that," say back to them, "then sue me."

I did what he said. In the 8 years since, I've gotten one other call, about 4 years later. The bastard "Freddy" gave my telephone number as his own on a loan application. Needless to say, I doubt very much Freddy got his loan. :evilgrin:

[handmade34]

85. many different stories about student loans

it is easy to be frustrated and feel helplessness. For all that have been able to pay off student loans and/or are able to keep up; that is good news for you. Not everyone is so fortunate, and often, trying to protect oneself, does not mean being irresponsible or not wanting to pay off a debt. My information to you, Sugarcoated: Do not talk to the collection agency, talk to the lender or representative directly.
Read to be as informed of your rights as possible.
http://www.ed.gov/offices/OSFAP/DCS/index.html
http://www.studentloanjustice.org/
You should be able to work with your lender to rehabilitate your loan by paying as little as $5-$10 per month for approx. 9-12 months. Insist on this. ...absolutely protect yourself and defend yourself by knowing the rules. After your loan is rehabilitated, you should be able to get a deferment if you need that. The information is out there; talk to as mnay people you can so that you can manage the debt. Good Luck

[handmade34]

86. beast that swallows its young

http://www.youtube.com/watch?v=xtIM_TEQxwA

[Th1onein]

91. DO NOT GIVE THEM ANY INFORMATION

I used to be a bill collector. I know whereof I speak. Do NOT give them any information. None. Zero. Zip.

[GReedDiamond]

102. ABSOLUTELY, 100%!

NEVER tell them ANYTHING they do not already know, and don't admit to anything they say. But, most importantly, know that they are PAID PROFESSIONAL LIARS!! (No offense meant to Th1onein!)

Get an unpublished telephone number.

Be self-employed, if you can.

Take advantage of every tax loophole possible, after seeking qualified professional advice.

Good luck.

[Th1onein]

105. No offense taken.

But, you know, if they are a collection agency, they should abide by the FDCPA, which forbids deception. And, therefore, if they are following the law, they should not be lying, and they are not paid professional liars. I was not, when I was a debt collector, although I heard a lot of idiots around me lying to people. I TRAINED debt collectors, for my company. We knew how to scare the holy crap out of people without lying about what we were capable of (for instance, third parties to the contract cannot threaten to garnishee, because they have no standing in the original contract and only a party to that contract can garnishee). But, no doubt, there were a lot of assholes who skirted the law. I even heard one collector tell this kid that the police were coming to take her mother to jail. I heard collectors tell people that their check bounced and they were going to file charges against them for a hot check (an NSF check in payment of a debt is NOT actionable criminally). I never found it necessary to do the dirty shit. Most people DO want to do the right thing and pay their bills. You just have to help them find a way to do it.

[GReedDiamond]

107. Yes, I am painting with the broad brush...

...but that is not to say that there are some honest and righteous debt collectors in the world, yourself included.

However, your reply pretty much validates my general point. There are more than enough abusive debt collectors doing their thing. I know because I have personally dealt with them.

I suppose being a "debt collector" is not a popular/enviable profession...

[Th1onein]

109. You're absolutely right.

It gives you one hell of a sense of power, though, that's for sure. And that power goes to people's heads.

I always felt, as a debt collector, that I could do good for the people I came into contact with, or bad. I chose to do good. I helped a lot of people, especially the elderly, with their debts, and with filing for bankruptcy. When I ran across a particularly sad situation, I hid that file in my computer so that no one could see it but me, and I educated those debtors on how to deal with other asshole debt collectors who might contact them, after the file was purged from our company, and went to another agency. I collected a LOT of money, and was the top collector at my company when I left, but there's no sense in being shitty to people. I ran across some people, of course, who had stolen their grandmother's credit cards and charged them up, or people who just ran up debts right before filing banko. I dealt harshly with them, of course. But most people want to pay their bills. Less than 3% are professional debtors.

[DS1]

101. Thank God for the GI Bill, and some wicked cool parents

Dodged THAT bullet, also worked all the way through college, but no loans!

[Quantess]

103. Yeah. I've been there.

If you can't pay, you can't pay. If you aren't making any money, they can't exactly take what you don't have, now can they?

That said, if you are making money but you have expenses that eat up most of your paycheck, if you can pay $15 a month, then it is probably in your best interest to set up a $15 monthly payment plan. If you can pay $10 per month, then set up a $10 monthly payment plan.

Try to work with them. If a particular collection agent is rude to you, just get them off the phone and contact someone who isn't a jerk, or wait until someone more reasonable contacts you. The debts change hands (are bought and sold) frequently, so the collection agents change, as well.

[Witchy_Dem]

112. I don't know what the DU policy is on pointing to other sites but...

My friends run Credit Boards and they have an entire section devoted to student loans.

CreditBoards.com

I doubt that DU is really the place for this, though you'll get a lot of the same feedback from posters there.