Student Loans

[raisingmyfico]

Okay I have a student loan that came out of deferrment in 2004. I have not been able to make any payments, no job...it has gone from Texas Guarantee to different collection agencies and back to Texas Guarantee. I really want to get this right but the collection agency told me that I couldn't pay less than $360 a month ("payment must fit the loan size" )

The newest collection agency (General Revenue) that has my loan will not send me anything in writing. I took a call and told her she MUST send me something in writing and she said: "we do everything by phone because information changes daily". I again told her to send me something in writing and she would hear back from me....she said ok. That was over a week ago...nothing in the mail but she has called again numerous times. One time I answered and very quickly said you must send me something in the mail and she said she did and I said great, when I get it you will from me. She's call twice since then and I didn't answer and still nothing in the mail.

I took about $20000 in loans and now with interest and fees she said I owe 56000. There is no way in the world I can pay this. No way. I am married and my husband just recently rehabbed his much smaller student loan and it was bought by a Credit Union. We are trying to get our debts under control and HONESTLY want to pay things but there is just no way I can make payments on 56000!

So my question: is there any chance that the Credit Union that bought my husband's loan would consolidate mine with his? My husbands' fico scores are 512-578. 

Is there anything I can do immediately to get this under control? I will be sending a certified letter to the CA stating not to call me again and to send things in writing. At this rate, I will never get caught up on these loans...the payments are just too high!  I feel completely overwhelmed and deflated about this! We are very actively trying to get stuff cleared up for my husband but this just makes it feel like it is pointless.

ETA: I want to say that I am working in real estate now...but no income in this tight market. However I feel certain that I can succeed, given time, and can eventually pay off my debts but it is during the mean time...what do I do? I also would much rather pay the Dept. of Education or even Texas Guarantee directly than ever give money to a jerky Collection Agency but don't know if it is possible to do that now....again, any help is great appreciated!

Message Edited by raisingmyfico on 05-23-2008 09:18 AM

[raisingmyfico]

Anyone have any thoughts? Thanks!

[heather76]

this is just my opinion but here goes.  First, I wouldn't obsess over the calls versus letters.  There's no hiding from the problem.  Just remind her that she has to-by law- send you verification of your debt.  Maybe ask to talk to supervisor.

My second advice is this.  Get a second job.  I hemmed and hawed over being broke, then finally I bit the bullet and took on a second job.  I've been doing it for two months.  Results?  I have paid off almost $2000 of debt in TWO months.  You have to make more money.  It's not a choice at this point.  You simply must.

I know it probably isn't what you wanted to hear, sorry.

P.S- It's amazing how understanding my 10 year old son has been about my extended work days- especially when I have money for him to attend basketball camp, and other things.... think about it.

[MattH]

---

heather76 wrote:

this is just my opinion but here goes. First, I wouldn't obsess over the calls versus letters. There's no hiding from the problem. Just remind her that she has to-by law- send you verification of your debt. Maybe ask to talk to supervisor.

My second advice is this. Get a second job. I hemmed and hawed over being broke, then finally I bit the bullet and took on a second job. I've been doing it for two months. Results? I have paid off almost $2000 of debt in TWO months. You have to make more money. It's not a choice at this point. You simply must.

I know it probably isn't what you wanted to hear, sorry.

P.S- It's amazing how understanding my 10 year old son has been about my extended work days- especially when I have money for him to attend basketball camp, and other things.... think about it.

---

Sensible advice. OP also needs to realize that Student Loans have an extra-special legal status under Federal law: they cannot be discharged in bankruptcy (except under extremely rare special circumstances), they can and will go after the debtor until paid no matter how long that takes, they can prevent getting jobs or mortgages, they can garnish wages, and just about any money from the government can and will be withheld for unpaid student loans.

[benitaV]

I did not even Finnish reading your post, after seeing (general Revenue) I got excited, Stay away from them. They tricked me into paying them $900.00 , $100.00 a month straight out of my checking, I paid $900.00 than when the 9 month payment plan was finished and I got my statement, my loan started off 2600.00 after I paid them 900.00 my balance was 2475.00 they just laughed at me. They never talked to me on the phone after I gave my consent to take money from my account. They traded me to another Co. Salle Mae, again. They will not talk to me abound the General revenue, I received no credit from them at all. Before them it was a Co called Pioneer credit. They made me do Quick collect. $350.00. Before that it was Salle Mae. My loan was for 2600.00 in 2004. I got sick before the 2 nd semester started and needed to surgery. I was contacted in December 2 months after school started and I had to start paying. It took me a few months but I get all of my hospital records together, and I filled for forbearance. Everything was fine I thought. Because when I got the call from pioneer credit they said I was in default and was going to report me to the credit burura. *They had bought me from Sallie mae. Note that none of the Companys will admit that I made any payments. They wont even talk to me after they trade me off to the next. This is the biggest ring of thieves I have ever seen. There is nothen I can do even though I have all of my bank statments. I have tried to file a comeplaint to Fico but they all side with them even with my proof. It is a ring of rich thieves playing a game with the helpless, The goverment protects them, by not letting us file bankrupsy on the student loans. I have now paid Sallie Ma 550.00 in the past 4 months. they still wont admite that I ever paid them before. Or any of the other Comany's. One more thing Everything that gets put on your credit report has to be on for 7 years . That is unless you find proof on thier that could prove any of this. Than it can be taken off. To cover thier A.. When I pulled up my report I had 4 company's for the same student loan and all running over each other.

[Wonderin]

First of all, please pop a carriage return in your posts, next time! It makes them easier to read (and therefore, more likely to get a response!!).

Second of all, did you contact the DoE ombudsman?? The DoEO might be able to help you ... at the very least, they can initiate an investigation and force them to accept your proof of payments!!

[LynnInMN]

With accured and capitalized interest, plus collection fees of up to 25% student loans balances add up very quickly if you default.  $360 is not exactly an unreasonalbe payment on a $50k balance.

The CA would have automatically sent you a first notice as soon as the account was assigned.  Do they have your correct address?