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Oh NO....Student Loan


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I believe I've seen this posted here, but I was hoping some of the brilliant minds would chip in with their $.02 worth. The wife recieved a notice from a CA representing a loan company for a defaulted Stafford Loan. I have drafted and will be mailing a reply requesting the normal validation. If anything, having a copy of the contract will give me a better idea of what we're dealing with.

Here's where you guys come in. My thoughts were to request the validation which will suspend any reporting to the bureaus. When I have confirmed they are in receipt of her letter, I was going to dispute any trade lines for this loan on her reportswith the CRAs. Of course the bureaus will forward the dispute to the loan company. Now if they confirm their entries as accurate before validating the dept with my wife, do we have them on violations? My/her letter clearly states to not report any negative information until they validate the debt with us.

What do you guys think? I know being government guaranteed it won't go away, but perhaps we could use the proceeds to pay the loan off.

As info:

The loan company is in Pennsylvania and CA is in California. We live in Florida.

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Student loans are more certain than death and taxes.

If there is a legalized mafia, its student loans.

Defaulting on them is a big mistake, even in bankruptcy, it is nearly impossible to get any sort of relief on them.

I never took out student loans, I opted to put my last year of college on a credit card instead. Fortunately, I paid it off before the 0% ran out.

Unfortunately, I inherited my wife's student loans when I married her. At the point of being manageable, we just paid it off and put it on a credit card. Had a better rate, got it paid faster as well.

Some people may disagree, but student loans are as important to keep current as the house mortgage, maybe even more so, because once you default and screw-up the student loan interest rate, it is improbable to re-finance and you're stuck.

In a mortgage forclosure, you can at least walk away from a bad deal and forget about the house if need be.

Student loans, you have no such option.

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If you need to, I would recommend requesting to cure the loan. I know for a fact that once it hits your CR it WILL stay there, no chance of having it removed. Only way to get it removed is by a cure and then, ONLY then, will it be removed and replaced with a positive notation on the loans. You will most likely have the OC reporting the loan with lates on them also. Those cannot in any way be removed, not even with a GW letter. Call and request the cure ASAP, that is the only way to fix this. If you guys are in a pinch for cash, tell them that you need an income sensitive payment plan. They will ask for a monthly budgeting of your bills and compare that to your income. Some, not all lenders offer the income sensitive payment plan but it doesn't hurt to ask for one. That will then determine what your payment is. You'll need to do this for 10-12 months but it is worth it just to get the CRAs off your back and your CR cleaned up.

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what recommendations would you give me, which i know will be very slim, but someone out there must have pulled something off in the midst of impossibility, when you have student loans that defaulted, turn up as "paid collections" in your CRs even after you consolidated them with another entity... managed to call the originators of those "paid collections" marks and they say it'll stay on your CRs for 7 years, and that there's nothing you can do about it.. please help..

disputing with CRAs to validate them?

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After digging through a ton of old files, I found that her loan they are collecting on is actually two loans. One is a Stafford loan, and one not government guaranteed. I am going to send a letter, but asking that they break out both loans seperately, and how the charges relate to each one individually.

We will be ponying up to the government secured loan, but the second non-Staffor loan is outside of the statute of limitations. They are lumping both together in their correspondance.

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