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Debt Consolidation Forums Student Loans and Education Debt

How to do settlement of old student loans?



Want2payback

Sub: How to do settlement of old student loans?
Tue, 31/05/2011 16:44

I'd like to ask a question regarding debt settlement of student loans. There were a few different ones, stafford, perkins, pell etc. Now they are owned by the Dept of Education. If the loans, went into default, say, 15 years ago and the principal balance amount plus the accrued interest at the time were, say, k 50, the interest must have grown considerably over the years in which the debt was paid. Now, my question is whether the 40 - 60 percent that you can expect to pay or save in the process of debt settlement would be calculated from the original principal amount and accrued interest form 15 years ago -- k 50 -- , or would it be calculated based on what would be owed now, which might be at least twice the original amount and still growing. If so, it would make such settlement much less attractive or perhaps even impossible to do, regardless of how well-intentioned the borrower might be or how willing to repay the debt. I would appreciate if you could clarify that matter for me. Thank you.



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Debt Samaritan
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Sub: #2 Often employers do pay...once a year....and the borrower assumesTue, 05/31/2011 - 16:44



Often employers do pay...once a year....and the borrower assumes everything is hunky dory. It's not. Interest accrues and capitalizes the other 11 months along with late fees. The employer is not responsible for these fees.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
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elsoft12
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Sub: #3 Hi Bettlefan, You have to check it up with tTue, 05/31/2011 - 09:04



Hi Bettlefan,
You have to check it up with the lender.Better late than never - you should try to see how your employer was trying to make you believe something thats not true.

Greatest Wealth in Life is the Health.Take Good care of it.


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Sub: #4 Who told you they were paid off? Did you ever check up on your Wed, 04/20/2011 - 20:11



Who told you they were paid off? Did you ever check up on your loans with your lender/servicer? Did you keep them informed of your current address??

You would have received a letter from the IRS informing you of the offset....it will list your guarantor. Or go to NSLDS.gov.edu

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com...imitation.html


Unregistered

Sub: #5 I had student loans from 1995. The hospital I worked for was paWed, 04/20/2011 - 18:59



I had student loans from 1995. The hospital I worked for was paying the loans back as part of my employment. I was told that the loans had been paid off completely. I found out that was not accurate and now I have old "defaulted" student loans. Only way I found out was my income tax refund was confiscated to pay some of this debt. I don't know how much is owed or who it's owed to. This is a nightmare. Is there any way I can get any help with this matter?


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Sub: #6 Student loans are borrowed under contract...your prom note. YouTue, 04/12/2011 - 12:49



Student loans are borrowed under contract...your prom note. You agreed to the terms. Of course you are going to pay more than what you borrowed...that is how loans work. Not only are you dealing with current interest accruing but interest that has already been capitalized into your balance,.

If I am understanding you properly, you had 50k in loans. Your loans now would be in excess of 100k according to the calculator I plugged numbers into PLUS collection fees of approximately 20k. With this type of balance, the Department of Ed would be more likely to sue you.....100k is usually the threshold. They have been know to pursue debtors outside the US, especially in Canada and the UK and Australia.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com...imitation.html


Unregistered

Sub: #7 Thanks for you answer. So, as I understand the settlement will bTue, 04/12/2011 - 12:24



Thanks for you answer. So, as I understand the settlement will be calculated more or less from the amount owed now, the total amount??? which means that to settle the debt you must pay perhaps more than you originally owed, if the interest had enough time to grow....is that correct?

Another question I have is what collection looks like outside of the US, i.e. if the borrower lives outside the US and the loans were incurred about 15 years ago and are now owed by Dept of Education?


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Debt Samaritan
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Sub: #8 Pells are not student loans..they are grants which you do not paTue, 04/12/2011 - 11:42



Pells are not student loans..they are grants which you do not pay back.

Settlements on federal student loans are limited...they do not settle like other consumer debts. Generally they will settle on the collection fees which depending on the guarantor can be up to 24% of the current balance. They cannot be included in debt settlement or debt management programs.

Occassionally they will waive some of the interest but this is only in exceptional circumstances. There is no SOL and they can recover right up until you die including social security garnishment.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com...imitation.html


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