College loan headache.

[jerrod76]

  Back in 2005, i failed to go to all my classes, and the loans were deemed unearned.  My fault, i was an idiot.  Anyway,  the school then paid off the loans to the feds and billed my student account.  All of my loans were dismissed due to permanent and total disability through the VA in 2008 .  Until recently i thought that the dismissal would apply to this debt as well and didnt think much about it.   Then it went to the state of Oregon for collections, then the school took it back and sent it to a collection agency, then it went back to the school,  then the state,  then the school again,  now in 2013 it is listed with a collection agency I just got the letter yesterday.   The original debt was 5k, now with interest and fees its gone to 15k.    Is there anything I can do? Anyone,?  

[FocusedAndDetermined]

Accept in rare cases, student loans cannot be included in BK, so I d0n't see how you could have them dismissed via VA.  Having said that you should probably seek legal advice, and verify exactly what was and wasn't included in the loan dismal you mentioned.  If your SLs were a part of the forgiveness, then you will be on the hook for the current amount.

Were you receiving any communications from the state or a CA?

[laz98]

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@FocusedAndDetermined wrote:

Accept in rare cases, student loans cannot be included in BK, so I d0n't see how you could have them dismissed via VA.  Having said that you should probably seek legal advice, and verify exactly what was and wasn't included in the loan dismal you mentioned.  If your SLs were a part of the forgiveness, then you will be on the hook for the current amount.

Were you receiving any communications from the state or a CA?

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It wasn't through bankruptcy; OP mentioned permanent & total disability status from the VA.

OP, I would contact the school ASAP & find out what didn't get paid.  That would be the best source of information.

I was a bit confused by your post...you said all of your loans were dismissed, but you thought that it would apply to "this debt" as well.  What is "this debt"?  Is it another federal loan, or a loan directly from your school, or something else?

[jerrod76]

  The debt originated as a federal loan.   When federal loan s are unearned, such as in my case.  The school pays the title iv funds back to the feds, and the school passes the debt into the students personal account.   Originally, i thought a school loan is a school loan regardless,  i have since learned differently.   I had received collection letters from the state, and now it is with a collection agency.   I wasnt stressing the state debt since it wasnt on my credit report.   I hope that on monday i can go into the school, make payment arrangements, and they ll agree to take it back from the collection agency.

[SCF]

I think you've got the right idea.  Take all of your documentation with you, if you can find a friendly ear, you may be able to make a case for reduced payments, or forgiveness of the debt based on your disability and the fact that your loans were dismissed.  If the school won't deal with you, then deal with it like you would any other collection account.