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About Cynic

  • Rank
    Poetic Tyrant


  • Biography
    I would like to be an attorney. I am 28. I live in Indianapolis, Indiana.
  • Interests
    WoW, researching, writing, drinking, eating, sleeping.
  • Occupation
    I'm not telling you what I do now. I worked for Sallie Mae, Nelnet, and Chase.

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  • Location
    Far from the Bureaucracy of Heaven
  1. Federal student loans are insured by the government. Agencies called guarantors administer the insurance and collection of the loans on a regional level. If a borrower doesn't pay, the lender can file a claim with the guarantor for the amount owed. The guarantor then pays the lender, and tries to collect. If the guarantor is unable to collect, they file a claim with the department of Education. In order for the claim to be paid, the lender or guarantor must show that they've exercised "due diligence" in servicing and collecting the loan. Your guarantor filed a claim on your loan with ED, and ED refused to pay it because proper "due diligence" was not followed... sounds like they failed to obtain or keep a valid promissory note, and probably lost other records as well. Since this is no longer a federal student loan, their ability collect is severely diminished. You could argue that since it's no longer a federal loan, the SOL is up.
  2. And they could be assigned to ED and show up again years from now...
  3. $8690 x 12% = $1042.8 / 365 = $2.86 in interest per day. Lets says it's been 30 days since your last payment, and you pay $200. $85.80 will go to interest (2.86 X 30), $114.2 to principle. New Principle: $8575.8 $8575.8 x 12% = $1029.10 / 365 = $2.82 in interest per day. Now lets say you pay $200 again, 15 days late (and we'll pretend they don't charge late fees). $126.87 will go to interest (2.82 x 45) and $73.13 to principle. New Principle: $8502.67 Although you paid $400, you reduced your balance by less then half that. Why? You paid late. That 15 days cost you $42.30 (and we're pretending there's no late fee). People often think that because they may have a grace period before they're charged a late fee, that a late payment will reduce their balance as much as an on-time one. More often then not, it won't. Student loans, auto loans, and even a growing number of mortgages use the simple daily interest method. The smartest thing to do if you have this type of loan is to pay 2-3 weeks early. Do the math and you'll see what I mean:)
  4. What $500? There's no mention of $500 anywhere in your prior posts, and my crystal ball isn't working. As Lynn mentioned, payments made to the previous loan holder won't show in the current's history. That doesn't mean they "don't count", it means they should be reflected in the "opening balance".
  5. As always, Lynn gave you good advice. to consolidate with ED.
  6. The Higher Education Act and Debt Collection Improvement Act specifically give federal student loan holders power to garnish wages and seize tax refunds WITHOUT filing a lawsuit and obtaining a judgment in court. These Federal laws supersede any state law that would otherwise limit collection.
  7. I have a mage, a warrior, and a priest. They're all level 70 alliance toons on the Exodar server.
  8. Well, if you consolidate the defaulted loan they can actually add 24% "collection cost", since it's a Perkins loan. That 24% will be included/capitalized into the principle balance of the new consolidation loan, meaning you'll accrue interest on the "collection cost". If you rehab with the school (directly with them or through their CA), collection costs of 24% will still apply, but will not be capitalized into the principle (meaning you won't accrue interest on it). The 18.5% you read about applied to Stafford and other FFELP loans. You said you had a Perkins loan.
  9. Consolidation may or may not be beneficial to you. To give any helpful advice I'd need to know all the specifics about your loans, and your financial situation.
  10. Yep, Lynn is correct. You have a written agreement. You signed it when you got the loan.
  11. 1). Collection agencies are never the "holder" of a federal student loan. 2). If the loans are in default, they should show up in a federal background check, notwithstanding a minor miracle where something "slipped through the cracks". This is true whether the holder is a school, a lender, a guarantor, or ED. 3). There is no way I can think of that you can truefully say by Tuesday that you've made a "Satisfactory repayment arrangement". "Satisfactory repayment arrangement" is defined in the Higher Education Act. In the context of making one on a defaulted loan, it means you've not only made an AGREEMENT, but also have paid the agreed-upon monthly amount, on-time, for at least 3 consecutive months. 4) As far as making a rehab request in writing to the school, I'd suggest you call them and ask what the letter needs to say. They will likely tell you to call the CA, but I'd personally start with the school.
  12. If you have a permanent and total disability you CAN have your Perkins loan discharged. Here's a link to the form that you need to complete with your doctor and send to the loan holder:
  13. Cynic

    Student Loan

    OP clearly stated that s/he has already consolidated... FFELP consolidation loans from Great Lakes are indeed still federally insured. That means: -no SOL -wages can be garnished administratively without a court order -tax refunds can be offset -assignment to the Department of Education due to nonpayment will restart the 7-year reporting period (the Higher Education Act in this instance supercedes the FCRA).
  14. They're not going to hire a PI over that kind of change.
  15. The CRAs have internal records, that likely have more information then what's available in your credit file. I don't personally know how long they keep them, but it's both possible and probable that they retain records longer then when they remain on your credit report. I'm not aware of any law that would entitle you to a copies of records that can no longer be legally included on your consumer report. I would assume each CRA has their own "master" record for each consumer. That means at least 4 "master credit reports".