Student Loan Payoff Question

[Anonymous]

I am writing to see if anyone has any advice they can give me regarding a student loan that went into default in 2004 when I unknowingly thought my student loans would be included with a bankruptcy that I filed during 2003.

In 2004, Sallie Mae filed a claim with Texas Guarantee for my student loans, which were in the amount of $34,000. By the time that I established a repayment plan, it was 4 months, in which Texas Guarantee had assessed collections fees upward of $18k and had indicated to me that had I established a repayment plan within 60 days, collections fees would have been dismissed.

I rehabilitated the 2 loans through San Antonio Federal Credit Union and have been making timely
payments ever since. However, this has not been sitting well with me for quite some time. To go
from an original loan of about $34k to now $50k seems too high and I just don't know if I have any
legal recourse.

I am trying to get my payments down as this has become a financial burden and I am looking into
consolidating to one single loan with the Department of Education. However, isn't there anything I
can do regarding those collections fees or have I simply missed the boat?

If I can't go through the route of reassessing the collections fees, then isn't there a way I can negotiate a lower
payoff directly with San Antonio Credit Union as I work to refinance the loan with the Department
of Education?

Has anyone had any experience with this kind of situation?

Thanks!

[LynnInMN]

Collection fees are federally mandated so there is no option or recourse.  You agreed to all collection fees applicable by law on your original prom note.

[Anonymous]

Since the loan is now out of collections, having been bought by San Antonio Credit Union, I would think that I may be able to negotiate a lower payoff directly with them, especially since they probably paid a lower amount to acquire the loan from Texas Guarantee in the first place. 

I would like to secure a consolidated loan with the Department of Education, but does anyone have any experience with such a negotiation? I know that the DOE has an online application process where they would process all the paperwork directly with the lender. But, assuming I can negotiate a lower payoff with the lender directly, do you think the DOE would just need some kind of written letter to the agreed upon payoff amount to initiate the completion of the refinance?

[LynnInMN]

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@Anonymous wrote:

Since the loan is now out of collections, having been bought by San Antonio Credit Union, I would think that I may be able to negotiate a lower payoff directly with them, especially since they probably paid a lower amount to acquire the loan from Texas Guarantee in the first place. 

I would like to secure a consolidated loan with the Department of Education, but does anyone have any experience with such a negotiation? I know that the DOE has an online application process where they would process all the paperwork directly with the lender. But, assuming I can negotiate a lower payoff with the lender directly, do you think the DOE would just need some kind of written letter to the agreed upon payoff amount to initiate the completion of the refinance?

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No ,you will not be able to negotiate anything lower...the entire balance is guaranteed by the Texas Guarantee so why would they even think of settling?  They paid the full balance when they acquired it.

There is NO negotiation when you consolidate.These are federal loans.,.the balances are guaranteed.  You will have to realize that you cannot change your balance.  The only time you can negotiate is whn you default.