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NSLDS amount doesn't match what collection agency wants


Big Time
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My white-trash alcoholic childhood friend keeps defaulting on his student loans because he'a always been a worthless alcoholic.  He's also wrecked every car he's ever owned and runs into things even when he isn't drunk. 

 

Despite all of this we've been friends for 30+ years so when he called me about his student loans I agreed to try and help him.

 

He first defaulted in the 90's, so the Tennessee Student Assistance Corporation added 25% collection fees which were capitalized into the loan.  He successfully rehabbed them, then he defaulted again a few years ago.  TSAC finally filed a claim or something with the US Department of Education who has the loans now.

 

Even though he's a total lush he's gotten the balance down quite a bit over the years.  The National Student Loan Database says he still owes about 10,000, but the new collection agency for US DOE wants 13,000.

 

Is the NSLDS the official amount owed?

 

Did they add 30% collection costs?  Can each CA or Guarantor add collection costs each time it goes from one to another?

 

Oh well.  he doesn't even have a job now so there isn't much he can do, but I still told him I would try to find out the answers.

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