Living in England - DOE Student loan settlement offer

[GrizzlyAdams]

Hi,

I hope someone can help. I have a settlement offer letter from my CA and they give me an address to send a Cashier's Check too. Getting a Cashier's Check drawn in dollars on an American bank is going to be very difficult from here.

The question: can I pay with a credit card? The address I have for payment is a Bank of America address, but could I pay the CA directly over the phone using a credit card? Would this be safe? Yes, this is a Federally Secured loan. I will probably be trying to pay them electronically tomorrow. Any information is appreciated.

Some further information that is not relevant, but probably useful to someone: I have been in default for a long time and owe a lot of money. I contacted the CA and said I wanted to sort it out. After talking to them for a long time they told me that if I paid in full I would be able to have the penalties waved, and half of the interest that have accrued dropped. This saves me quite a chunk of money and keeps me from paying interest for another 10 to 30 years.

Thanks

[GrizzlyAdams]

Update:

I just got off of the phone with the Default Resolution Group at 1-800-621-3115 and they had to check, but because they had the compromise/settlement letter there on file the can take the payment directly over the phone by credit card.

They also said that even though the letter did not say anything about using credit/debit cards to pay the loan, I could have paid the loan off through the CA and this would have been fine. I feel safer paying it directly to the DOE though.

I have to get the money into my current/checking account and then tell my bank that there is going to be a big transfer so that they can approve it. Wish me luck.

[willingtocope]

You're absolutely right to be leery of paying the CA. Contact the DOE directly, and make payment arrangements with them. You cannot trust a CA to see that your money actually gets applied to your debt.

[LynnInMN]

DOE wont intercede and even if they do, the payment will be forwarded to the CA.

[GrizzlyAdams]

It was not actaully the DOE. They always tell me to call the CA, but the FSA Default Resolutions Group had the comprimise amount, and took payment over the phone from a Visa debit card. The gave me a confirmation number. Later when the CA phoned me I gave them the confirmation number and they were happy. I know my story is a rare one, but it is true.

The CA even told me them selves that because of the way the DOE works (loans are not actaully sold like they are with other debt) that the CA pays the DOE in full and then the DOE forward them their fee %. The CA does not take their amount first, so as long as you pay the don't care who you pay.

Heck, the address that they gave me to send payment to (if using snail mail) was a Bank of America address 'in Care Of' DOE.

Number I called to submit payment (remove spaces):

http :// www2 .ed.gov/offices/OSFAP/DCS/index.html

Payment addresses:

http :// www .nasfaa.org/publications/2009/eaaddress080309.html

Again, maybe this information will help someone else.

[LynnInMN]

The OP cannot pay by cash because they are in the UK...plus CA's wont accept cash. Same goes with overseas check....very difficult. They paid the most reliable way they could.