tropicaljo Posted March 8, 2005 Report Share Posted March 8, 2005 Well, after over 16 years, Arkansas Tech has finally assigned my defaulted student loans to a collection agency. According to the collection agent at (edited), out of Salem NH, over $5000.00 have evidently been added in collection costs tacked on by other collection agencies who never bothered to contact me. This young man couldn't account for why no other collection agent was able to contact me, even commenting on the facts that they had no trouble finding my location and I responded right away to their dun letter. Also, I don't know how this company got all my current contact info because I don't see any new inquiries on my credit reports. Now he has recommended that I call this 800 number to get the information on my loans (lender names and amounts), and then call him back and give him that information in order to do a consolidation application with him over the phone, then he says I can defer the payments for 12 months. Then I'll have to apply for an extension if I still can't pay. According to him, this deferrment status will be reported in a positive manner on my credit reports, thereby not cause damage to my current credit scores.My current situation is this... 1.) I am fighting a life threatening disease with no health insurance and we fall in that income territory where my DH makes just enough so I don't qualify for Medicaid. 2.) Add to that the IRS is fixin' to audit us and take every expendable dollar they can get for the next 10 years. And what I didn't tell this "nice" young collection agent was that I managed to get the student loan tradelines removed last year based on the fact that even unpaid tax liens are only reported for 15 years, and these student loans have been in default since 1988. Since he made no comment concerning my credit reports, I can only assume that he is not aware that this tradeline is no longer being reported.So I don't know quite what to do. If I apply for a consolidation loan as he suggests, it will update the DOLA and give them room to reenter the info on my credit reports. In addition, I don't think I should have to pay all those collection fees brought about by collection companies that never bothered to contact me. Not to mention that it doesn't look like the IRS is going to ever cut us any slack and there will never be any money to apply to this debt. Does anyone out there have any input that might help me decide what I should do? Link to comment Share on other sites More sharing options...
LynnInMN Posted March 9, 2005 Report Share Posted March 9, 2005 None of the collection costs added to your loan have been added by collection agencies. Your guantee agency adds them, in accordance to your promisory note. It is either 18.5% or 25%. You did agree to pay them on that same note. Are you permanently disabled?? Permanemtly disabled by the DOE standards is a condition where you will never work again and could result in death. If so, you may qualifiy for loan cancellation. As a word of warning....your loan is at the age where it could be subrogated by the Feds...sent to the DOE. That would result in additional penalties and another 7 year reporting. Consolidation is a great option if you dont meet the disabliltiy standard. Link to comment Share on other sites More sharing options...
tropicaljo Posted March 9, 2005 Author Report Share Posted March 9, 2005 Well, I haven't applied for disability yet but plan to begin that process as soon as possible. And yes, what I have could ultimately cause my early death. I don't know if it will cause me to never be able to work again...there are alot of factors that will determinate that issue in the future.As a word of warning....your loan is at the age where it could be subrogated by the Feds...sent to the DOE. That would result in additional penalties and another 7 year reporting. Lynn...I'm just a poorly educated hillbilly and have no idea what the word "subrogate" means ... and could you please explain what the significance of this going to the DOE would be. In my case, the IRS has already filed liens and has implied that there is an audit in our future, so our our credit scores have already been ruined for the next ten years (or until we can get those tax debts paid off). They've already imposed a monthly payment that takes every "expendable" dollar, so there's not going to be any extra money to apply to this until the IRS releases us. I can see that it might be in my best interest to do the consolidation and deferrment, mainly because it would put a hold this and give me some time to try to get the disability going, but I'm wondering if this guy was telling the truth about how this process works and about how it will show up on my cr's. Guess it really doesn't matter about the credit thing, but I'd hate to sign myself up for more headaches by signing a contract that I know I can't honor, and then having to fight for deferment status. Link to comment Share on other sites More sharing options...
tropicaljo Posted March 10, 2005 Author Report Share Posted March 10, 2005 I talked to this guy last night and now I have another question. This guy insisted that I immediately go to smartloan.com and fill out an online app. He said that I would first come to a page with three questions. He said answer yes to all. Problem is that the last question asks if your loan is in grace, defered etc, but was specific concerning "not in default". So for me to answer this question with a yes would be a lie. My loan has been in default for 16 + years. So even after him telling me "You know how the government works" concerning my questions about the almost $8000.00 in "late fees and collection costs, he is wanting me to lie on a loan application. And because I have some experience with lying collection agents, I'm concerned that if I do as he's demanding that I will get in even more trouble. What should I do? Should I call AR. Tech and inquire about the actual balance of the loan? According to this guy, AR. Tech is only going to call him to get the balance, implying that it would be a waste of my time. Should I call the Sallie Mae people and discuss this with them? I don't think they're gonna like the fact that this collection agent is recommending that people lie on loan applications... Link to comment Share on other sites More sharing options...
workinninetofive Posted March 11, 2005 Report Share Posted March 11, 2005 Hey there. I wish I knew what you should do. I think his advise is funny though.BUMP Link to comment Share on other sites More sharing options...
tropicaljo Posted March 11, 2005 Author Report Share Posted March 11, 2005 Oooo! I knew this guy was full of do-do! I called Sallie Mae and spoke with a really nice young gal who said that yes indeed it would be fraudulent for me to apply for a loan that I have no means of honoring, and it would be fraudulent for me to lie on the online application concerning the status of my loans. She also said that since I only have one loan there is nothing to consolidate and that since I'm in default that I wouldn't qualify for assistance from Sallie Mae anyway!.Next, I called AR. Tech and spoke with another really nice lady (imagine... two nice ones in a row!!) She was shocked that this guy had tried to get me to do this... and couldn't believe that the guy wouldn't give me an accurate breakdown of all the additional charges, and she said she'd call me today with that information. She also said that she didn't believe the amount of late fees and collection charges (which turns out to be almost $8000. instead of the $5000. that I was earlier quoted.) that this guy says I owe is correct, but should be around $3500.00. So, it kinda looks to me like there is a violation or two here concerning what this guy wanted me to do... essentially recommending I commit fraud on a government loan application. Any opinions here on what I could pursue as far as valid violations? Link to comment Share on other sites More sharing options...
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