Drake Savory Posted August 10, 2013 Report Share Posted August 10, 2013 I owe just over $40000 in student loans (just confirmed on the DoEd student aid site) but in the letter I got from the CA for the guarrantor, they claim I owe over $50000.Did they charge $10,000 in fees?Since this would be considered unreasonable i.e. not tied to actual cost of collections could I take them to court?I have just started the consolidation process. Will that new loan pay off the $40,000 or $50,000? Link to comment Share on other sites More sharing options...
1stStep Posted August 10, 2013 Report Share Posted August 10, 2013 The difference could be accrued interest and fees. I would ask for a complete breakdown of everything. Most likely you'll be consolidating the $50k. Link to comment Share on other sites More sharing options...
Clydesmom Posted August 10, 2013 Report Share Posted August 10, 2013 When collecting on defaulted federally backed student loans the law currently allows the CA to add up to 25% in fees for "collections" so there is no point in suing. It is a huge bone of contention that they can add fees that high. Look into a rehab program first. When you enter into one you agree to make a specific payment for 9 months. Once you have completed that process all your loans are updated to "pays as agreed" the lates are removed, and all added interest, fees, etc. removed. After you get that accomplished, THEN I would consolidate provided they do NOT sell the loans to Sallie Mae. Link to comment Share on other sites More sharing options...
admin Posted August 11, 2013 Report Share Posted August 11, 2013 Call the department of education and see if you can work out a rehab deal. http://edu.gov. Link to comment Share on other sites More sharing options...
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