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royfromtexas

Okay, I'm about to call Allied. I know with my 53,000 in years defaulted guaranteed federal stafford student loan debt, they will demand more than I can pay and probably just garnish. I've read all of your posts on how to ask, and to speak to Allied, but what do I do when I calmly and nicely tell them that what I can pay is Really, Truly all that I can pay?

Do they ever allow you to just pay what you can, with a chance of rehabbing it whenever I have a better job?

Also, GHS debt solutions says they can cut the debt to 25,000, and I can pay them $375 a month. I've checked with every other debt solution company and they couldn't help me, but GHS promises they can. I've researched them, and they've got credentials, but i'm mighty sceptical.

If Allied refuses to work with me on a fair and affordable plan, I know I can call the ombusdman.
But should I consider the GHS?

By calling Allied first, will I be messing up GHS's chances of negotiating the debt?

If they do start garnishing, can I ever rehabiliate and lower the debt?

Thank you for your help and your forum. I'm trying to fix my mistakes of youth and keep my marriage together. I'm so scared I can't eat and can barely sleep.

Posted: Wed Jun 11, 2008 8:40 am Subject:

GHS is handing you a line of BS. debt settlement companies cannot settle the debt for student loans. The only way to settle a student loan is up front offer of cash...usually they will waive some or all of the collection fees. But 50% off....never! In fact Allied will not work with such companies. Besides, what these companies charge you is better off applied to the student loan itself.

You need to sit down prior to calling allied and make out a financial statement. Rent, utilities, car payment, car insurance, food, gas...living expenses. Then call them and tell them you wish to rehab your loan and that you are entitled to reasonable and affordable payments under the Higher Education Act. They will go over your financial statement and should set up a payment plan.

You have to do this....nobody else can do it for you. Quit wasting time looking at other companies to intervene for you. You need to pick up the phone and just get it done.

royfromtexas · Posted: Wed Jun 11, 2008 10:42 am Subject: I Called Allied!

...and they have send my account back to the DOE, to the Default Resolution Group.
I called the Default Resolution Group, and they said they didn't have it, but will contact Allied and make sure that they asked for it back. They're sending me an expenses form to fill out.

My hopes are to negotiate with the DOE before they send it off to another collections.

Have you heard of this happening?

Thanks for making me "man-up" and call them.
xo,
roy

Posted: Wed Jun 11, 2008 12:16 pm Subject:

No...the account will just be shuffled to another CA.

Allied will have to give a response as to why the account is being recalled.

Guest · Posted: Wed Jun 11, 2008 2:01 pm Subject:

Allied said that the DOE had requested it back...
Oh....i was getting some hopes up.
Since the lady at the Default Resolution Group is sending me the expenses form, is she just gonna pass that on to the next collection agency? She made me feel like there was a chance?
So, am I back to square one? This is driving me nuts!
How can i stop more collection charges being added while this account is in transit? OH i'm gonna puke...

So, i just gotta wait until the next collection agency, then call them and make an arrangement? I just hate this so much...

royfromtexas · Posted: Wed Jun 11, 2008 2:56 pm Subject:

So I called Allied again to find out why the account had been recalled.

It hadn't. Allied still has it.

When I asked for debt validation, I asked for all collections activities to be seized.

and they did.
A very scary Allied lady gave me a number for the department that it has been escalated to.

My next question is:
If they will not give me reasonable, affordable payment and they wind up garnishing my wages for the rest of my life, will it ever make a dent in my debt?

Posted: Wed Jun 11, 2008 3:13 pm Subject:

I may be mistaken, but I believe they have to give you 'reasonable & affordable payments. That's actually in the law [Higher Education Act], IIRC. Soaplady's the expert on this, give her a little while.

Posted: Wed Jun 11, 2008 5:08 pm Subject:

royfromtexas · Posted: Thu Jun 12, 2008 5:27 am Subject:

I requested debt validation in writing three weeks ago. They quickly responded with a zerox of my signature on the direct loan consolidation in 2002, and a run-down of the original prinicple and the ungodly interest since.

Here is more of my situation:
I'm moving to another state at the end of the summer.
I was unemployed from last december until the beginning of february this year.
Since I have been at my current place of employ for less that 12 months, i believe that they can't garnish yet.

Even though my debt validation is seen as a stall, are they still going to send me the garnishment notice that i have 30 days to comply to, or can they skip that?

Because I want to start rehabbing, but i'm hoping to start next month...still saving for a pricey move, but worried that if i stall too long and they can't garnish, that they'll go after me in other ways.

I'm gonna call them at noon today. wish me luck, and any more hints or tips are appreciated...

Posted: Thu Jun 12, 2008 10:54 am Subject:

To avoid garnishment, you will need to start repayment right away.

In order to use the job defense, you have to have been "involuntarily seperated" from your last job. This means you have to have been fired or laid off...being a contractor or seasonal help doesnt qualify. Also, because you are moving, I would assume you are quitting your current job, which would make garnishment at your next job immediate.

royfromtexas · Posted: Thu Jun 12, 2008 11:18 am Subject:

I did get fired from my last job. I have a statement from my old employer stating that i was involuntarily terminated, and a statement from my new employee stating when i was hired.

work has me tied up so i can't call allied until later tonight, but what can they do during the three months that i'm here if they can't garnish?
do they start moving in on bank accounts or taking me to trial?

i'm gonna call 'em, but i sure could use another month or two before i start repaying, and i'm wondering if the job defense will buy me some time.

Posted: Thu Jun 12, 2008 12:09 pm Subject:

They are not going to want to wait, nor should they have to.

They do not take loans to trial nor do they garnish bank accounts. The only time they file for judgement is for accounts over $100k

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