Student Loan Collections Issue

[dknibbe]

What is the name of your state?What is the name of your state? CT

To Whom It May Concern:

Last year I was contacted by a debt collector on behalf of an overdue balance on my student loans. Of course they threatened everything under the sun if I didn't pay on the ENTIRE balance of $40,000 (keep in mind that I have only been out of school for three years and the loans were for a duration of 30 years!!). They agree to take $8,000 in cash and agreed to take monthly payments afterwards. Since then I have been making monthly payments of $250 but have no received ANY documentation on payoff balance, monies owed, etc.

Is this a scam for them to make more money after the settlement? Can they come after me indefinitely? What can I do to see if that $8,000 I paid last year was the entire settlement? Please help....

 

[ihatearizona]

Immediately send (via certified mail) a letter to the collection agency demanding debt validation. This will provide you with a complete accounting of your account. If they do not provide this, they have no right to collect on the account. Go to http://www.creditinfocenter.com and click on the link for debt validation for further information.

 

[JETX]

keep in mind that I have only been out of school for three years and the loans were for a duration of 30 years!!

And 'keep in mind' that the 30 year 'deal' was ONLY valid as long as you held up YOUR end. You didn't.... so the lender has every right to 'call the full debt due and owing'. Read the paperwork you signed.

 

[dknibbe]

So what are my options considering I paid a large sum up front to get them off my back? I continue to pay them in timely monthly increments but have NEVER received any accounting of my balance, payments, etc. I am thinking that this money is going into a black hole. Should I stop paying? What should I do?

 

[ihatearizona]

Do what I said in my previous post. Write them a letter asking for validation (if a collection agency) or if it is the original creditor ask for verification.
This should get them to send you a statement. If they don't reply, then you'll need to send them a secondary letter.

I don't know what the others on this board would say about this but I would put in the 2nd letter (if it even comes to that) that until I get a full accounting on this matter and proof that they (if a collection agency) are indeed legally responsible for the collection of this account that I will not be paying them another dime until I had the info I was seeking. Phrase it however you like. But, that of course is jumping ahead.

 

[isitmei]

student loans

Take the advice from "ihatearizona" but be aware that they can and will take your IRS refund. Although gov agency is not suppose to share info - they do. Do not send them checks or if you do, use for this purpose only. They can and will levy your account . They get around the ruling to not share info between gov agencies by selling to a private company and then purchasing the list back from the PC. I survived this with no easy measure.