topic Re: Alaska Student Loan in Student Loans

Alaska Student Loan

Anonymous — Tue, 01 Sep 2009 23:37:30 GMT

I've been a reader of this board for a while but first time post so please forgive any mistakes.

It's a long story but I haven't made any attempt to repay my original Alaskan Student Loan since I left college back in 1995. I have been a stay at home dad for the past 6 years, yada yada. Today for the first time I decided to stop running from my original debt so as to build up my credit, and called the Alaskan Student Loan office which goes under another name now. They told me the debt was taken over by Premier Credit of North America. My original balance was close to $25,000. I made a call to PCNA and was told the current balance was a little over $54,000 with interest and charges. They offered to reduce it to $40,000 if I made a lump payment which is impossible at this point in time. I offered to make a good faith $50 payment for the next three months, at which time they said they would reavaluate my status. Since my interest comes to over $300 a month.

I am unemployed and am considering Bankrupcy, but since over 95% of my debt is either a smaller federal student loan and the Alaskan student loan I don't know if it would even be worth it. I guess I am just hoping for some help with some solutions. I have a new child on the way so I don't think I will be able to work for another 5 months or so. Do I have to work solely with the creditor or is there anyone else I can talk to about negotiating a reduction in my balance? Are there any laws or bills out there I should look into? It's been close to 13 years since these loans defaulted, does that make a difference.

I'm just trying to make amends for my debt but right now it is so overwhelming it seems impossible. I realize I have made some huge mistakes for ignoring it for all these years, but any help would be greatly appreciated.

Re: Alaska Student Loan

IOBA — Wed, 02 Sep 2009 02:45:14 GMT

My suggestion is to go back to the original creditor and start giving them money. Even if it's $50 a month, or $25 every two weeks. I have never had anyone completely refuse money.

I am not sure if you can apply for deferment or forbearance. Someone on here would know.

Keep paying something every two weeks.

Re: Alaska Student Loan

Anonymous — Thu, 03 Sep 2009 01:58:40 GMT

The original creditor? Do you mean the Alaskan Student loan office. I called them up and the lady that answered told me that I had to deal with premier credit of north American now. Should I do that rather then send money to Premier Credit of North America? Should I tell them first. I am sorry for all the questions I just didn't realize the seriousness of the situation until I looked at all of the Student Loan laws.

Re: Alaska Student Loan

IOBA — Thu, 03 Sep 2009 19:14:50 GMT

If it were me, I would send the money to Alaskan student loan office. Be sure to include the loan number. Be sure to include a note that says it should be applied to interest first.

If it were me, I would refuse to deal with the collection agency, Premier Credit of North America.

NEVER talk to the collection agency on the phone. Everything needs to be in writing!!! As for notifiying PCNA -- nope.

Another suggestion. Go open up a separate bank account, at a different bank, just to make payments to the student loan office. They usually copy checks. From there, they can check account information on your bank balance. From there, they can take more money out of your account...if they are less than honest. The same applies to the collection agency.

With my medical collections, I go through the whole "talk to the collection agency" thing every month. I always tell the medical office no. I made the debt with you, I pay YOU. And every month, they want to argue but they take the money anyway. And the collection agency has never contacted me.

Re: Alaska Student Loan

IOBA — Tue, 08 Sep 2009 14:33:23 GMT

What is the latest? Any updates?

Re: Alaska Student Loan

CreditWarrior21 — Tue, 08 Sep 2009 15:58:40 GMT

Hi Seamarks,

Something VERY important to note-Student Loans are different than any other collection in that they WILL NOT go away after a certain number of years. Even bankruptcy will not discharge federal student loans. Right now it sounds like you have defaulted on your loans. ( I am in the same boat) You CANNOT work with the orginal loaner-they no longer own the loan- You must work with Premier Credit of North America. Generally how this works is they will give you the option to rehab your defaulted loan-what this means is they will have you pay a set amount for 9 months and then the loan can be re-bought by a lender and be considered in good standing again.

Your negative tradelines (the defaulted ones) will be taken off your credit report then. Unfortunately sending 25 dollars here or 50 dollars there is not going to cut it. Believe me-I pay 430 a month right now to rehab my loan. You can call Premier Credit and they will work something out based on income or based on the amount you owe. I know it stinks but its the only way out.

The other option is consolidation-but this will not remove your negative tradelines on your report. And since I am assuming you are on this site to improve your credit than I imagine this is not the way you want to go.

Re: Alaska Student Loan

Anonymous — Thu, 10 Sep 2009 03:24:31 GMT

So sorry, my email account became "un-synced" with my phone so I didn't get any notification. No, nothing has changed because I won't have any money to send anybody for another 10 days. Yes, I am in default. I have had no contact with the Alaskan Student loan office since I was in college. I know it's bad, but I had back child-support until recently so I felt like there was no sense even dealing with it until now.

I guess I'm mostly concerned because I just did a credit check and saw my credit score on equifax was 670 so I want to build on that if possible. I'd hate to make up a payment plan with the credit agency and not follow through on it if it will hurt my credit score again. Since it was the Alaskan Student Loan office that told me I have to deal with the credit agency I'm a little confused about ignoring them and trying to just send them money.

Re: Alaska Student Loan

Anonymous — Thu, 10 Sep 2009 03:29:40 GMT

Well what is strange is there is no mention at all of my student loans on the two credit reports I pulled.(experian, Equifax) I'm worried I might have "rocked the boat" and made someone realize this and they might put them on my report now, but such is life I suppose. It went into default in 1996 so maybe that has something to do with it, although Premier Credit said they bought the loan in 2008. This is all such a mess but hopefull I can find a solution that works for everyone. I understand that I made the loan to go to school, just having to deal with all the added interest and such now. Price I have to pay for ignoring something so vital.

Re: Alaska Student Loan

IOBA — Thu, 10 Sep 2009 19:12:11 GMT

I have read often in the forums, that ignoring financial obligations is not good. Eventually, it will come back to bite you.

It's great that it's not reporting right now.

If I understand the reporting, once it's aged 7 years since default, they no longer report it on the credit report. The collection agency should not be able to report it.

Find a comfortable payment for you. When you have the money, please start paying it. It may take years...but you will feel better about it.

PS - if they just bought it, they probably bought it for a discounted amount. You might be able to negotiate a lower balance due or for the interest to stop.

Re: Alaska Student Loan

IOBA — Fri, 18 Sep 2009 18:31:39 GMT

Any news on the loans?

Re: Alaska Student Loan

Anonymous — Fri, 25 Sep 2009 04:06:45 GMT

I am probably going to send my first 50 dollar payment tomorrow. I read somewhere that if I make 8 payments towards my debt I can get another loan to go back to college. If anyone knows if this true please let me know. I was a Theater major which seemed great at the time, but not so much now, since I found neither fame nor fortune. At this point in time (I'm 40), I'd be happy to have any career. Thinking about Law School, or the medical fields, although getting a masters in theater wouldn't hurt either. A BS in theater is about like saying you have experience in car sales in the real world. IMHO

Re: Alaska Student Loan

IOBA — Fri, 25 Sep 2009 04:38:06 GMT

That is great! (Making payments.)

I have no clue about the other part. Someone I dated years and years ago defaulted on his student loans. When he went back to school, he was not eligible for more student aid until he paid back the loans in full. I think they were creative with his financing...not sure. But he did get them paid off. Had to delay a semester.

Then he defaulted on the new student loans. I have no clue where things are now for him.