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    6 Replies Latest reply on Jul 12, 2008 5:28 AM by dtominus

    Old Student Loan - Please advise

    frustrated Newbie

      I have an unpaid student loan from 2000. The loan was for $625, I contacted the collections agency to see if we can settle but they said that they are not allowed to settle. Does anyone know if this is true?
      Now they want me to pay a total of $1232.58 for interest and collections fees. I don't mind paying a small penalty, but do I really have to pay the full amount? Can someone please advise? I am really frustrated with these people.
        • Re: Old Student Loan - Please advise
          adamleake19 Newbie
          go to the person you got the money from and pay them dont pay them cut them out and you just pay that person the money you own them.
          that is what i did
          1 of 1 people found this helpful
          • Re: Old Student Loan - Please advise
            LUCKIEST Guide
            Old Student Loan. TALK TO A LAWYER
            • Re: Old Student Loan - Please advise
              amspcs Ranger
              Yes, get a lawyer and seek sound advise. But wait a minute here: Aren't some of us missing the point somewhat?

              Did you borrow and accept the loan money on your own free will.?
              Did you agree to pay it back?
              Did you get the education?

              If the answers to the above are 'yes'....then why the debate on whether to pay it back or not. Maybe I'm a little old fashioned, but the way I always understood the loan deal was: When you borrow and agree to pay back, you pay it back !!!!

              When you don't pay back a government loan, gets who pays it back for you? The taxpayer, that's who. That's me and you and everyone else out there reading this post.

              Don't like to pay penalty and interest? Don't blame you, who does. But it occurs to me there was a simple solution that could have been taken to avoid this...Namely, you could have paid the money back when due. You didn't, you used their money, and they are entitled to interest. And if you agreed to pay a penalty when you signed for and accepted the loan....again, I don't see the problem. Say what you do, then do what you say.

              For the record,way back when I borrowed for all my kids' educations on what was then called Parent Plus Loans, in which the parent is responsible, not the student. And I paid back every last dime, made the very last payment last month as a matter of fact. Sure I would have rather gone on a cruise, toured Europe, bought a BMW. But when you owe someone, you pay it back. Simple as that.

              And by the way, I have found when one needs a little help when one hits a payment speed bump along the way as everyone does, they are more than willing to help you seek out equitable solutions if you demonstrate you are legitimately trying to deal with the situation and not just deadbeating them. Of course, now that you've let it get out of hand and it's gone to a collection agency, you have a whole new set of problems with only yourself to blame. The original lender is out of the picture since they probably technically 'sold' the loan paper to the collection agency, collected pennies on the dollar, and washed their hands of you. So don't expect much in the way of sympathy from the collection agency, they're in the 'for profit' business, they want their money, they expect to earn a profit, and the have the legal leverage to get it. You would have been much better off negotiating with the college years ago, but you apparantly squandered that opportunity.

              If the moral arguement doesn't hit home, maybe a more pragmatic explanation will. If you stiff them on the loan, they WILL screw your credit. If the loan is from 2000, I assume you're fairly young and have lots of major purchases in your, homes, etc. With a poor credit score, the $1200 you're complaining about now is going to look like chump change compared with the inflated interest you'll pay over your lifetime as a result of having ruined your your credit. .

              My advise--if you got the money, pay it back. Work out a payment plan you can live with that perhaps a lawyer can help you negotiate, don't stiff them. That's neither right nor smart.
              • Re: Old Student Loan - Please advise
                dtominus Wayfarer

                I was in the student loan business for ten years , If its stafford loan , probably unsub . Y ou have to pay
                it back , If you are in default , you can contact the lender and arrange 3 consectuive ontime payments
                then you will be taken out of default status, And can start making small monthly payments , but interest
                does accrue on a federal loan , If your in repayment and your in default, so dont avoide it, You can call me if you need help.....

                David Tominus