DEFAULTED STUDENT LOAN RETURNED to MYEDDEBT UPDATE

[MidnightJester]

Ok. sooooo I have a long fallen off student loan thats in default. been passed among 3 money credit collectors. last was Van ru credit corp. been with them for around year half or 2. they have been seizing my federal returns last few year. Been wanting to rehab loan but didnt still holding off. I log on to myeddebt.com check my loans.

Normally if you check your loans online or by phone they give you few options besides telling you who your current debt collector is and how to contact them.

*NOW* I log on and everything is the same but my current debt collector is blank. hmmmmmmm. I call the ED student loan #1800-621-3115. The dont tell me to call the debt collector. I ask about my loan they already had all my info, scarry, ask me my SS# I say yes. PRAY the GOVT dosent do a Credit pull? DO THEY?? I am about to get a few credit cards. They then tell me I can REHAB through them without going to credit collector like i had to for last 4 years or so.

What do you think??

Has anyone ever had a Student loan handed back from a collections company to Fed Gov without you paying anything?? It still is in default they told me so and I am up for rahab since I never rehabed before. $35 a month for rehab I can do. Just not ready to hop up on rehab waggon this sec

[SCF]

I think loans often cycle back to the government and then are usually farmed back out to one or more collection agencies for additional attempts to collect - but I have no idea what the timeline for that process is.  Maybe you just caught your loan between CAs?

[MidnightJester]

Here is a nice : ) Kicker. WIth the loans being sent back to myeddebt (Default resolution Group) when I look closer at my full amounts owed Principal + Intrest + Peanlty/Fee (Collection company fees) What was 970 in penelty and fees is now wiped "0"from my total owed. I droped from almost 5000 down to 3300 total owed. woooooooooooo. The difference is 700 or so seized from my Federal tax return and the 900 or so collection fees that were from Van ru Collections are withdrawn.

I read somewhere that the amount of collection fees are based on your owed principal or intrest fees's amounts on student loan.

[MidnightJester]

So I am keeping myself in the getting my credit life fully functioning. My default loan file is def with MYEDDEBT not a collector currently. I am still in default and not ready to jump on the REHAB bandwagon so to help my case and keep it with myeddebt I sent them a payment of $20.00 seperate of money then they have sezied over the years, My hope is that their system will keep my loan with them since they have gotten a real payment from me for first time in 14 years give or take.

My only fear is that they might report my payment to them to the CRA's but i dont think they will. As of now my credti files dont even know I have student loans they are so long fallen off and forgotten by the CRA's. Time will tell. Till next update.