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Very strange situation with student loans..Confused


lockedupspirit
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My husband entered deferral about a year ago and went into loan rehabilitation after he scored a job. We were married about two months ago.

While on our honeymoon, his HR department was contacted regarding his student loan. They just verified his employement. he then started getting calls immediately about default, etc etc....He called to make arrangements for payment and they refused to comply with his arrangements. He called the DOE---They have nothing on his loan, since the loan he did have with DOE was paid off.

I told him to arrange for payments immediately until after we refi our home and I'll pay off the balance. It's not high, about 6 grand.

Suddenly, this "Pioneer Credit" started harrassing him. They call his work, refuse any sort of payment, call him nasty names, call his boss and say things like, "Your employees don't pay their bills" One guy yelled at him, calling him a deadbeat , saying that he will amount to nothing if he doesn't pay his bills, used profanity and started to call his boss and use profanity. They demanded a Postdated check for nearly $1,000 or he would be subject to wage garnishment. They also threated to continue the harrassing phone calls to his work until he agreeed to issue a postdated check.

Now, Correct me if i'm wrong, is this....at all...LEGAL? I know student loans are essentially above the law, but this...this is insanity!

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My husband entered deferral about a year ago and went into loan rehabilitation after he scored a job. We were married about two months ago.

You mean he went into default about a year ago. To be in deferment implies a current loan. You can only be in the rehab program if you are in default.

While on our honeymoon, his HR department was contacted regarding his student loan. They just verified his employement. he then started getting calls immediately about default, etc etc....He called to make arrangements for payment and they refused to comply with his arrangements. He called the DOE---They have nothing on his loan, since the loan he did have with DOE was paid off.

I told him to arrange for payments immediately until after we refi our home and I'll pay off the balance. It's not high, about 6 grand.

You may not be able to refi your house with this on your credit. Or they will force you to pay it off as part of the refi. It will probably end up costing you a higher interest rate.

Suddenly, this "Pioneer Credit" started harrassing him. They call his work, refuse any sort of payment, call him nasty names, call his boss and say things like, "Your employees don't pay their bills" One guy yelled at him, calling him a deadbeat , saying that he will amount to nothing if he doesn't pay his bills, used profanity and started to call his boss and use profanity. They demanded a Postdated check for nearly $1,000 or he would be subject to wage garnishment. They also threated to continue the harrassing phone calls to his work until he agreeed to issue a postdated check.

Is your hubby on good terms with his boss?? Can he get a noterized statement from the boss stating what was said to him by the CA?? This is probably still a DOE loan....however it has been assigned to Pioneer and the DOE cannot intervene.

DO NOT ISSUE THE POST DATED CHECK. You need to send a C&D letter to this CA and contact the Ombudsman ASAP. They have broken several FDCPA laws.

Now, Correct me if i'm wrong, is this....at all...LEGAL? I know student loans are essentially above the law, but this...this is insanity!

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He won't be on the Refi---he's not even on the current loan, it's just myself. I'm taking a cashout for some home repairs and figured I would pay this off with some of that money.

He is on good terms with his Boss and I'll kindly ask her to sign an affidavit. I'm also going to get in touch with an attorney regarding this. I think this is simplay awful. Yes, he's in default, Yes, that is bad, but he agreed to payment and wanted to make the situation good. This does not merit that kind of behavior.

Lynn, Thank you for your advice, I will speak to him regarding this.

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Does this make them the OC and the CA at the same time?

Can that happen? I'm all for personal financial responsibilty but I'm serious, this is really getting him down. It'a almost like a form of legalized racketering.

if we pay this loan off in full will they report it as a zero balance will this all stop?

Uhg. I'm about to dip into my 401K and pay this off!

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Does this make them the OC and the CA at the same time?

Nope.....CA's never own student loans. The DOE or a FFELP lender owns it and contracts with a CA to collect it.

Can that happen? I'm all for personal financial responsibilty but I'm serious, this is really getting him down. It'a almost like a form of legalized racketering.

You said he set up a rehab...did he ever make the payments the agreed upon payments??? Normally if you set up and stick with a rehab they will leave you alone to complete it.

if we pay this loan off in full will they report it as a zero balance will this all stop?

Without completing a rehab he will be stuck with negative information for quite awhile on his CR. The original lender either way will continue to report negatively but the guarantor or current lender will adjust the CR when a rehab is completed.

Uhg. I'm about to dip into my 401K and pay this off!

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