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How to deal with OLD defaulted student loans


GregINDC
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Hello Everyone,

I appreciate any advice that anyone has to offer.

I defaulted on $9,000 worth of Student Loans (I believe all are with the US DOE) over ten years ago. Because of the length of time, they have all dropped off my credit report.

Recently, a CA has been contacting me regarding the loans. Now that I am back on my feet, I want to take responsibility for these loans and pay them. I do not have any of the initial paperwork and honestly do not know the exact amount that I owe. I sent a DV letter to the CA and they said, "we are reviewing your letter and will get back to you". Its been over 6 months and no answer. Since the CA will not deal with me, I called the US DOE today and asked what I could do about this. They were no help and insisted that I deal with the CA, who won't respond to my DV request.

So here are the questions:

1) Now that the loans have dropped off my credit report, can they ever be reported to the CRAs again?

2) Can I rehab these loans? if so, with who? the US DOE or the CA?

3) If I can rehab, do I consolidate first?

4) IS there anyway to negotiate the amount? (9,000 prin, 3,500 int, 3,500 fees, according to the CA). In other words, would they agree to me just paying the principal?

5) Because the CA won't respond with original loan info to verify the amounts, and the US DOE won't deal with me, who do I turn to next?

I want to pay these loans, but I need all the info first.

I'm in quite a quandary and need some good advice!!

Greg

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Hello Everyone,

I appreciate any advice that anyone has to offer.

I defaulted on $9,000 worth of Student Loans (I believe all are with the US DOE) over ten years ago. Because of the length of time, they have all dropped off my credit report.

Recently, a CA has been contacting me regarding the loans. Now that I am back on my feet, I want to take responsibility for these loans and pay them. I do not have any of the initial paperwork and honestly do not know the exact amount that I owe. I sent a DV letter to the CA and they said, "we are reviewing your letter and will get back to you". Its been over 6 months and no answer. Since the CA will not deal with me, I called the US DOE today and asked what I could do about this. They were no help and insisted that I deal with the CA, who won't respond to my DV request.

So here are the questions:

1) Now that the loans have dropped off my credit report, can they ever be reported to the CRAs again?

They can always file a judgement.

2) Can I rehab these loans? if so, with who? the US DOE or the CA?

You make arrangements with the CA.

3) If I can rehab, do I consolidate first?

No. You can only rehab a defaulted loan. Consolidating removes the default.

4) IS there anyway to negotiate the amount? (9,000 prin, 3,500 int, 3,500 fees, according to the CA). In other words, would they agree to me just paying the principal?

If you pay the account off by a settlement, then they will waive the some or all of the collection fees and maybe some of the interest. Most of the interest has already been capitalized into the loan.

5) Because the CA won't respond with original loan info to verify the amounts, and the US DOE won't deal with me, who do I turn to next?

I want to pay these loans, but I need all the info first.

I would call the CA and ask for a copy of the prom note. DV are seen as a stall and do not take high priority. You can get a payment history showing breakdown of account since the DOE paid the account. You wont get a breakdown of interest from the original lender/servicer. They are not responsible for that.

I'm in quite a quandary and need some good advice!!

Greg

Hope this helps

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Here.

http://www.nslds.ed.gov/nslds_SA/

You may need to get a new PIN, but that's rather easy and didn't take but a day when I had to get mine. That should tell you who currently has your loans and how much they are at. I don't know if it'll show the 25% the CA will tack on. You'll definitely want to take care of these, as they'll never go away. In my case, I absolutely had to deal with the CA and go through the rehabilitation process (make 9-10 payments timely and consecutively).

Good luck.

Oh, and to share my opinion about the reporting SOL... I would assume that as long as you don't default on the loans again, they couldn't be listed on your CRs, but I don't know for sure. Once you rehab, you'll probably want to consolidate the loans, which will create new tradelines. I went with Sallie Mae.

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Hello Everyone,

I appreciate any advice that anyone has to offer.

I defaulted on $9,000 worth of Student Loans (I believe all are with the US DOE) over ten years ago. Because of the length of time, they have all dropped off my credit report.

Recently, a CA has been contacting me regarding the loans. Now that I am back on my feet, I want to take responsibility for these loans and pay them. I do not have any of the initial paperwork and honestly do not know the exact amount that I owe. I sent a DV letter to the CA and they said, "we are reviewing your letter and will get back to you". Its been over 6 months and no answer. Since the CA will not deal with me, I called the US DOE today and asked what I could do about this. They were no help and insisted that I deal with the CA, who won't respond to my DV request.

So here are the questions:

1) Now that the loans have dropped off my credit report, can they ever be reported to the CRAs again?

2) Can I rehab these loans? if so, with who? the US DOE or the CA?

3) If I can rehab, do I consolidate first?

4) IS there anyway to negotiate the amount? (9,000 prin, 3,500 int, 3,500 fees, according to the CA). In other words, would they agree to me just paying the principal?

5) Because the CA won't respond with original loan info to verify the amounts, and the US DOE won't deal with me, who do I turn to next?

I want to pay these loans, but I need all the info first.

I'm in quite a quandary and need some good advice!!

Greg

You can just send me a check for $5,000 and I will send you a statement showing that your student loans are paid in full. :)

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