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JackP

I wanna settle student loan

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I have student loan for the amount 1250.00 I paid only 10.00 on it because I had to show my previous employer a current payment for them to hire me. So the last time I spoke and touched the collection agency was back in Febuary of 2012, I haven't gotten as many calls...maybe 2-3 times a week? before it was crazy.....I feel like they've almost given up.....the loan was sent to the collection agency from the community college in 2009. I know I should've paid it off but have had hardships...we all do, Now I wanna get a financed for a car and would like to take this off my credit report before I apply because I know I'll get denied, I am going to apply for a secured credit card as well. I would like to negoitate and have this not reflect as bad on my credit report. how much should I offer them when I mail them a letter for debt settlement?

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JackP,

 

There's no forgiveness for student loans. Period. You have to pay it back.

 

IF your strategy is to get a secured credit card, get it *now* and make payments for at least 6 months before you apply for a car loan.

 

Even better - join a credit union now, and consistantly put money into your account and then apply for a credit card with THEM.

Then have them finance your car loan.  Just be timely with your payments there...

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Ok this one is important.

 

1) There ARE forgiveness programs available under cirtain circumstances as well as other programs to reduce the total owed.

 

Check out : http://studentaid.ed.gov

 

2) You first need to see how this is reflecting on your credit report before deciding to apply for a car or other loan.

 

3) In the mean time you should send a DV letter to the collection agency disputing the debt and request everything (original app, statements, payments etc...) and don't forget to tell them in the letter not to contact you by phone again. Also make sure you send this letter certified mail return receipt requested.

 

If the loan is late but inside a certain window of delinquency there are government programs that may buy the loan and reset for you. If you are past that point there are other options.

 

Be strong and think things through before you make any moves.

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Yeah, there are forgiveness programs if you qualify for the criteria:

 

1.  Total and Permenant Disability

2.  Your Death

3.  Discharge in Bankruptcy (extremely rare per the website cited above's own words)

4.  The College you went to closes

5.  If your school falsely certified your eligibility for the loan

6.  Unpaid Refund Discharge ( if you withdrew from school, but the school didn’t pay a refund that it owed to the U.S. Department of Education)

7.  You are a teacher and obtained the loan *after* 1998

8.  Perkins Loan Cancellation (has it's own criteria, like you going into the Peace Corps, etc)

 

This criteria applies to about 1% of anyone who has ever gotten a student loan.

 

Effectively meaning that there is NO absolution of student loans for 99% of all others.

 

This will stay on your credit report until it's satisfied, meaning it never comes off like other debt.

 

Requesting DV with all the criteria that Sblisko has asked for above will get you nowhere. All they have to provide you is your name and account number and it's 'validated'.

I suggest you read the plethora of posts from people on this site about Debt Validation. Don't believe anything that says you should ask for the kitchen sink in your DV letter that's not true...

And yes, I understand that Mr. Blisko has written a book on the subject of Debt Warfare. I'm sure it's good. The review I read of it is good.

 

I have no idea if there are other government programs that will buy and reset your student loans.

What would that mean anyway? "Reset" it for you? You'd still owe it.

 

Good Luck.

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