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My husband consolidated his student loans about 2yrs ago but missed one, or could not consolidate it or something. Basically, he got a couple of quite nasty letters about a debt he owed for an out of state school he attended.

At that time, we wrote a letter stating that we could not manage to pay off debt in full but wanted to make monthly payments. We also asked for the debt to be reduced to the original amount (my husband is not sure what this amout was).

We got a letter back saying they would not accept anything but the full amount of the debt, so at that point, we ignored it. No letters came. We moved overseas for a couple of years.

We came back to the USA to live and about a month ago, a letter arrived at my husbands sisters address from the same collection agency. It stated that they were going to liquidate the deliquent balance and would now investigate my husbands employment, bank account and property etc.

The debt is $6,000 and we do not have the money to send them. What do we do now?

Should we try to send a letter to the original loan company (the college) asking for a reduced amount or a longer period of monthly repayments?

Do we send a letter to the collectors?

Do we ignore it? we do not want our car taken, or to be sent to court.

Do we borrow the money from somewhere else to pay this debt?

Any advice would be very much appreciated.

does anyone have a model of what it looks like or should look like

Sub: #1 posted on Tue, 06/26/2007 - 20:49


I believe that you need to place any enquiry with the credit lender and know the latest standing of your account.

Since the college acted as the guarantor, the credit lender will be able to provide you the complete information about your accounts.

Also, pull your credit report from the three agencies to confirm the status of your account.

Sub: #2 posted on Tue, 08/09/2005 - 05:56

ben ben

(Posts: 2034 | Credits: 426.37)

ben, who would be the creditor? the college?

Sub: #3 posted on Tue, 08/09/2005 - 05:40


that letter kicks butt of the collectors!!!

Sub: #4 posted on Tue, 08/09/2005 - 02:38

vwh vwh

(Posts: 125 | Credits: 57.92)

Curlysue -

My real concern is that the loan was consolidated and i dont want to pay it twice. How can I find this info out?

You should contact your creditor to know the latest standing of this account and also ask your consultant working in your program to assist you in this matter.

You can also acquire a latest standing of this account by pulling your latest credit report from the three bureaus. It will be really helpful.

Sub: #5 posted on Tue, 08/09/2005 - 01:15

ben ben

(Posts: 2034 | Credits: 426.37)

Those letters are very thorough and fair, IMO. If I owe money, I have a right to know that info. Period. I will not dish out hard earned money to nothing.

Collections, to me, are leeches. If they asked for the exact amount that you owe, instead of throwing in outrageous legal fees, late fees, pointless fees, their mortgage bills, etc....then they'd be ok. But anytime I'm contacted by collections, they ONLY get what I see is fair, which is usually the original amount plus SOME, not ALL.

collection agencies could use a little common sense. If we could pay the bills up front, without problem, then the agencies wouldnt have to contact us in the first thus, something must be wrong on our end. We're behind in bills, in debt, can't afford an attorney. Ergo, collection agencies need not be rude morons about how they contact people.

Tell me what I owe in a calm, decent manner. I will tell you, in a calm decent matter, what I can do about it. If you dont like it, then dont gripe about it. Come to an adult resolution. Collection agencies dont get that....

Sub: #6 posted on Mon, 08/08/2005 - 22:21

Lindsey Lindsey

(Posts: 362 | Credits: 159.07)

I have an updtae and a request for further help.

I got back a letter from the collector, it basically said that because a promissory note verifies i particpated in the student loan and that it was lent by a credit company with the college as guarantor. Now the college had to pay off the full amount to the credit lendor.

The info they sent shows a loan application signed in 1998 with a promissary note signed in 1999 - they dont seem to tie up and neither does the amount lent.

The cost is now 6000 because of 3500 loan, 800 interest and 1700 in collection costs.

My real concern is that the loan was consolidated and i dont want to pay it twice. How can I find this info out?

Also they are demanding a cheque made payable to the 'college' for the full amount by August 12th.

help! I am sorry for my poor typing and :)

Sub: #7 posted on Mon, 08/08/2005 - 08:54


Slamabam - If the collection agency is legally recovering the debts from the consumers, then they should least hesitate in providing the following information.

Moreover, the fdcpa law supports asking for the following information when a collection agency is contacting the consumer. You need to have a look at the website of Federal Trade Commission if you are doubt this information. I smell something fishy from your post

Sub: #8 posted on Fri, 08/05/2005 - 03:23

ben ben

(Posts: 2034 | Credits: 426.37)

[quote="roxette"]Hi Curlysu

are you kidding me with these letters?

do you really beleive that you are entitled to half of the information you pretend to know that you are entitled to?

do you really beleive that any collection agency owes you answers to those ridiculous statements?

lastly, do you think collection agencies dont know you cant AFFORD an attorney?

Sub: #9 posted on Thu, 08/04/2005 - 12:52


Hi Sue

After they have verified your debt, your main concern should be removing the negative entry of your collection from your credit report as soon as possible. It can only be done after they have provided you the proper details of your account and when you have paid your account either in installments or in full.

Now, even if you send a payment to them to which they don't agree, they might sue you verbally if not in reality. They might not take this matter to the court because you are willing to pay and they are getting their money without taking the matter to the court.

I will insist you to send in a larger amount of payment as soon as you can. After you have sent your payment through mail, call them up and say that you have sent a payment and if they would consider not taking legal action because you are utmost willing to pay your debt. You can add that you are not having the complete amount at the present moment and taking the matter to the court and putting legal action will not also get them their money any sooner.

It is just a matter of proper bargain with your debt collector and I wish they should accept your proposal.


Sub: #10 posted on Wed, 07/06/2005 - 00:34

roxette roxette

(Posts: 4009 | Credits: 559.9)

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