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Re: unbelievable interest
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Posted by joanne (217.162.249.58) on June 11, 2002 at 01:26:12:
In Reply to: unbelievable interest posted by JC on June 10, 2002 at 23:31:57:
sounds like alot, but its legit, first ACS, is collecting on the behalf of the dept of ed/and CHELA, they dont own it. when the loan went into default in 1998, the principle and outstanding interest was tallied up, then 25% of that amount is was added as collection agent fee to chase you. Interest on that amount has been calculating since 1998, and continues every day,and will cont,, the longer you wait to deal with them the worse it will get, if you havent had your salary garnished yet, you can work out one of three options,, this is what ACS, will offer you:
1) they have the permission to reduce the current balance of principle,CA fees, and interest by 1/3, if have the funds to pay it off immediately, your credit reports will be updated with a zero balance, loan settled for less than owed, all neg info shall remain, a new DOLA activity will be added,,
2)you can establish with them a "reasonable" monthly payment of no less than 50 dollars, after third on time payment, you can consolidate the loan, whereby the all amounts remain, except the CA fees will be reduced to 18.5% and added in new loan,, credit report will be zero balance, loan sold, all neg info remains, new DOLA,
3) you can rehabiliate the loan, whereby you make 12 consecutive on time "reasonable payments" (this reasonable payment will of course be higher, than if you tell them you want future consolidation) after the 12th payment, all negative info shall be deleted, all CA fees will be waived, then you are free to consolidate at a lower rate,
watch though, the CA will try to convince you to pay the loan off now at a 1/3 reduc, or cons, but if your credit report is a concern, bite the bullet, and make the 12 payments and kill the 25% CA fee,,,
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