Re: Need student loan advice - how to handle Collection Agency
[ Follow Ups ] [ Post Followup ] [ Credit Forum Index ]
Posted by J (209.145.133.228) on July 01, 2002 at 10:23:53:
In Reply to: Need student loan advice - how to handle Collection Agency posted by Jade on July 01, 2002 at 02:19:28:
Specific advise would depend on the type of loan (direct, FFEL, Stafford, etc), how much it is (If the balance will be less than $500 after twelve payments) and your current situation. It sounds like you are not working, so garnishment is less of a concern today, but if you start a new job, you will chance garnishment. If you know this is yours, they will be able to validate. I advise you to start the rehab procedure in order to take advantage of those benefits as soon as possible. Get the book "Take Control of Your Student Loans" by Robin Leonard Rolo Press. It's out of print, but I found a copy at the Public Library and you can also find it used online. There are some new amendments to the Higher Education Act since it's printing in 1997, but the info is very helpful. One big difference since that printing is that garnishment is much more likely than it was five years ago. Unfortunately, I've had no luck by-passing the CA for rehabbing my student loans. I'll post here if I find a way to do that and would appreciate the info if someone else knows how. If you are forced to go to the CA, keep in contact with the guarantor. Just remember that none of them are on your side. As per the Higher Education Act, the CA or guarantor must accept a "reasonable and affordable" payment, regardless of the status of your defaulted loan. If they try to set the amount higher than you know you can afford, then you need to call the guarantor of the loan. When you contact the holder of your loan, use this exact language: "I want to establish a reasonable and affordable payment so that I can rehabilitate my loans." That get you the answers you need. If you do not get specific answers keep calling. It took me 3 calls to the same number to get some one helpful. One thing to note, they can garnish without judgement for a student loan, it will be 10% of your take home (15% if you work for the gov). If your check is garnished, you can still rehab the loan, but you will have to make your reasonable and affordable payment above and beyond the garnishment.
Follow Ups:
Post a Followup
|
