please help re: Allied interstate and default student loan

Hi I am glad I have found this forum.
I hope some one can help. I am married and have a defaulted student loan which I incurred before I got married. I believe someone called my husband employment and said it was "Federal Wage garnish" looking for me and said to call 18007913266 ext 2274. should i send a cease letter of com.. for my husband...My husband is upset thinking they will garnish his wages since we are married. I called a bill I got from allied interstate and they said to contact 18007913266 (I noticed it is the same # as above) Where they just trying to be deceptive and scare my husband. Isnt it illegal to call his workplace? Anyways i spoke to Allied interstate to try to repayment arrangements and they ask couple questions and said I could pay 1)272$ for 9 mon. or 2) 475$ downpayment and 200$ mon. and after good payments they will refi loan and will be able to pay less (ICR plan)He said he stil has to get it approved by manager for payment arrange..
I said I will talk to my husband and call back. He was really nice on the phone. I am wanting to get this resolved but want to make sure they are valid . should I ask for debt validation first and payments arrangements in writing? can they garnish my husbands wages . It is not his loan although we are married. please help

Ok.....did they actually "say" they were going to garnish your husbands wage or was it the "wage garnishment unit" trying to get in touch with you?

No they cannot garnish your husbands wages. Period.

No it is not illegal to call his workplace. The only way it would be illegal is if he told them not to contact him at his work phone.

On the repayment. What he is setting you up for is called rehabilitation. The qualfiying payment for a rehab is 1% of your balance. (How much do you owe??)
No downpayment is required by the Higher Eduation Act to qualify for rehab...they can ask for it but they cannot make it condition of rehab.

Once you have made the 9 payments, you do not automatically qualify for ICR payments. ICR is the payment plan that is granted if you consolidate your loan with the US department of education.

I think I owe 24000 total included is fees of allied inter, actual owe for student loan is around 19000 . should I do the rehab? I am currently only working partime and I was worried they were going to garnish my husbands wages.
They said I should be in good standing after 9 mon. and my payments should go down after with ICR . Thanks so much for ur help

The collection fees are NOT applied by Allied interstate,they are applied to your account 60 days post default by your guarantor.

Yes you should rehab.

Again ICR is NOT a payment plan available to you if you rehab. ICR stands for Income Contingent Repayment and this type of payment plan is only available if you consolidate thru the US Department of Education Direct Loan Program. Rehabbing and Consolidating are two very different programs.

With a $24k balance, Allied should be looking at a payment of around $240-250 per month for the 9 months. Your payment may go down after the rehab has been completed but not by much.

should i request a debt validation and request payment of 9 months in a written agreement before I make a payment. Also is that true after 9 months my account will be out of default and in good status? thats what the guy said.
just thinking they may want payment right a way over the phone.
The other wierd thing is they started calling my house phone and I think it my cell phone with unknown caller and what showed up I think it looked like half a picture of my daughter showed up on my cell phone ( i have a TREO) I thoght it was someone i knew. That is scary...,.

You will not get a written payment agreement due to the fact that you have a prom note whereby you agreed to pay the account in full on demand in the case of default. They will not and cannot violate this agreement.

You do not need to validate do you?? You owe the debt right?
Correct...this is called rehabilitation.

it seems about right the amount, but if they want me to start making payments should I ask for it in writing before I decide to start on paying 272$ for 9 mon/ will they give me like a recipet or bill for the rehab or somethin in mail first before I start paying.Is it ok to start the first payment over the phone or wait till I get somethin in mail regard rehab payments. thanks for ur help again.

yes I think the amt is about right . should I just start first payment over the phone reg 272$ for 9 mo. or do I get a form agreement before I start paying. just want to make sure they keep there word and makesure i get credited.. will they send an updated bill with balance after each payment. thanks so much

As I have already stated, you will get nothing in writing nor do they generally supply receipts....your cancelled check is your receipt.

In your original prom note, you agreed to pay your default off IN FULL on demand. Thus they will not send you anything in writing that implys a payment arrangement...this is the way it has always been done. Rehab is covered by the Higher Education Act.

sorry about reply twice wasnt sure if my first reply went thru. yes I guess its ok then to make a first payment over phone . amt is about 19000 plus the fees =around 24000. I appreciate your help . I was really stressed out. I will do the rehab. thanks again...

HI soap lady . I had one more question.. what is the best way to make payments. some people says not to give checking acct # just incase they over charge.. thanks for your help

Only with student loans are checks safe. The CA's are highly regulated with these government contracts. They risk loosing their contract with the government if they screw around with peoples accounts.

I have a defaulted student loan that I was told could be "consolidated" by a bank that would buy the loan, refinancing and a repayment plan not to exceed 25%! They told me that the banks were doing me a favor by consolidating 4 loans (I thought I had one loan) and taking me out of a default status, at which time I could receive financial aid. However, I was told that they do not know which bank would "pick up the loan and refinance" but could charge up to 25% interest on the outstanding $11,000 balance. Right now, the GSL Loan stands is accruing 8% interest. Gee, thanks but I'll pass. And you'll never know what rate you are signing and agreement to ahead of time. You really need to read between the lines so as to not dig yourself in deeper. To keep people from contacting you or your husband, put your request IN WRITING with a CEASE & DESIST request to no longer contact you or your husband by mail, phone or through yours or his employment, relatives or anyone who knows you (such as references, landlords, etc). Make sure you date the document and keep a copy for your records should an infraction of the fdcpa (Fair Debt collection Practices Act) is breached.

Sorry, but you NEVEr cease and desist a student loan collection company....that will result in a pretty quick wage garnishment. You also need to read this forum....you have a lot of wrong information.


The 25% charge is not interest...it is federally mandated collection fees, a one time charge. Student loan interest on GSL's are federally mandated,....your interest rate with be a weighted of your current loans.

You can go thru the US DOE to have your loans consolidated with the Direct Loan program. The link is in the stickies.

I have had dealings with this collection company at 18007913266. It was for a student loan debt. Let me tell you all this company is breaking all kind of laws. This company after I made my first payment I had no idea but I apperently shorted them 40 dollars. they Contacted my work and told my co-worker who answered the phone that I did not pay the correct amount. (My co-worker) I called A.S.A.P and I ripped this company to shreds and it did not help I insisted that I paid the amount we agreed on finally I told her if she called my work again I would own them! One week latter she conacted my work again and left a message with another co-worker saying that if I do not follow through with the full amount they would garnish my wages. At this time, I contacted student loans and informed them that this company was breaking the law. federal student loans said they would do an investigation I mailed both notes from the co workers with the office managers signature and also the office manager sent a letter to federal loans that the company was becoming disruptive and federal loans said after the so called investigation that they felt the company did nothing wrong.
I will not talk to them they cannot find me and when I make any payment I send it to federal student loans and it pisses them all off because the collection company wants the payment to go to them.

Hate to tell you but they can find your employer and garnish you without a court order if you do not have an approved payment plan set up. The DOE gets employment info via the IRS.