Pell grant in collection with Conserve needs help!

[tammyjk]

I was dealing with Conserve on my husbands loans.  They were actually very easy to deal with.   If at all possible get your loan transferred back to dept of ed.  though.  We were able to do this by telling dept of ed that we just couldnt meet the payment Conserve was asking and we didnt feel comfortable setting up auto drafts.  I did have to contact Conserve a couple of days ago because of a dept of ed mix up and they were very helpful.  In fact, they went the extra mile talking to the school so my husband could get into his next classes. 

The biggest thing though is that if this is a regular collection you cannot rehab.  But I would deffinately look into the possibility of doing so.  That would get the negatives off your report and then you can pay off. 

[jadeite788]

I am sorry but Pell Grants are Federal funded grants that do not have to be paid back.  I have had pell grants in the past and  dropped the semester.  How is it that you owe the school, unless it was never a reall Pell Grant to begin with.

[jadeite788]

---

@bahbahd wrote:

 I think you should call the FinAid at the college and ask them. It could be that since you withdrew that the grant money was returned to the government and the tuition is the current outstanding debt.

It sounds like the OC is the college and the debt owed was to them. Is the college reporting a $0 balance account anywhere on your reports? Or is there just a CA account showing.

This is probably a better thing in the long run. I would ask the FinAid at the school again if the debt was really sold and if you can pay them directly .Maybe you'll get lucky and can pay the school and have the debt pulled back from collections and that CA account removed from your reports. If the school really says you do not owe them money and it was for sure sold, then off the CA a PFD.

---

I did not think of this, and this could very well be the case.  That the college returned the grant money back to the government.  That would make sense.  That means the OP would owe tuition not for a Pell Grant.  

[jadeite788]

---

@tommysofly wrote:

---

@bahbahd wrote:

 I think you should call the FinAid at the college and ask them. It could be that since you withdrew that the grant money was returned to the government and the tuition is the current outstanding debt.

It sounds like the OC is the college and the debt owed was to them. Is the college reporting a $0 balance account anywhere on your reports? Or is there just a CA account showing.

This is probably a better thing in the long run. I would ask the FinAid at the school again if the debt was really sold and if you can pay them directly .Maybe you'll get lucky and can pay the school and have the debt pulled back from collections and that CA account removed from your reports. If the school really says you do not owe them money and it was for sure sold, then off the CA a PFD.

---

i tried to call the school and try to pay them but they said they put my file on hold and i have to deal with the collection agency which is Conserve.

The school doesn't  report anything on my credit report

only the Collection agency shows i owed 2800$ and it stated it's from a school i went to

I'll try to get the funds ready and i send the CA the PFD letter 

also Conserve put 3 tradeline on me credit reports

one for 2800$ one for 239$ and the last one for 300$

i think it's because it's for a couple different semester that's why it reports it like that

my question is if i PFD them should i ask them to put everything together and give me a total amount due and send them 1  PDF letter for the full amount

or do i need to send 3 different PFD letter?

---

sounds like you owe the school, if so that is not true.  You can deal with the school directly.  I did with my Perkins Loans that was in default.  Always try to deal with the OC.  Myself did it the other way around.  I paid the Penn State in full.  Then later I wrote a good PFD with citing some FCRA statuates, which they eventually took off my credit report.

[tommysofly]

---

@tammyjk wrote:

I was dealing with Conserve on my husbands loans.  They were actually very easy to deal with.   If at all possible get your loan transferred back to dept of ed.  though.  We were able to do this by telling dept of ed that we just couldnt meet the payment Conserve was asking and we didnt feel comfortable setting up auto drafts.  I did have to contact Conserve a couple of days ago because of a dept of ed mix up and they were very helpful.  In fact, they went the extra mile talking to the school so my husband could get into his next classes. 

The biggest thing though is that if this is a regular collection you cannot rehab.  But I would deffinately look into the possibility of doing so.  That would get the negatives off your report and then you can pay off. 

---

Thanks for the reply tammy

Yeah i think the federal pell grant went to the school, and they give it to me to pay for the classes. But when i dropped the classes the  school refund the money to the dep of ed. and now i owe the school. and they send it to collection.

sorry i havent have time to get back but one quick question,

How did you get your loans transfer back to the dept of ed?

who did you contact and speak to?

because i tried calling my school to get the loans transfer back to my school and they said it's impossible and i dont know who to contact.

If you can please pm me the phone number or department you contact to get it transfer.

thanks 

[SCF]

Pell Grants are not loans - you are only required to pay them back if for some reason you are no longer eligible to receive them.  In your case, you withdrew from school, so you owed the money back because you no longer met that requirement for receiving the money.  If the school refunded the Pell Grant program, then you owe a debt to them, and they seem to have chosen to handle collections on that debt by using a collection agency.

If the school actually sold the debt to the CA, they may be unwilling or even unable to "call it back" to their own books.  This is going to be much more like a collection for any other unsecured debt than a student loan.