Hello. My Sallie Mae loan is to the point where th

Hello. My Sallie Mae loan is to the point where they are keeping my tax returns and garnishing my wages. I am sure I have no recourse on this and have just gotten into the mind set to live with it until it stops. However my boyfriend is now in to the point where they will be going to garnish his wages in the near future and we we're hoping to use his tax return to make a one time payoff. His loan has already been sold to a 3rd party company. His balance is up around $4500. Is there a good way to negotiate a lower pay off amount?

Student loans are never sold, they are assigned to collection agencies. The guarantor retains ownership.

Your boyfriends taxes will probably be seized if he is at the garnishment point...that is, if it is a federal loan.

As your boyfriend's debt has been sold off to a third party, he may negotiate with them in order to get a lower pay off amount. However, it will be the discretion of the third party collection agency whether or not it will accept your boyfriend's request. In most cases, however, his tax refunds will be garnished in order to recover the debt.

Read my response anna.....student loans are NEVER sold off to third parties.

Will it make a difference if it is a Federal Loan or not.? I don't know which it is. I just got a letter for his debt yesterday from Act Control Technology, inc. The first paragraph is about an offer of assistance if we cant pay in full at once. It does show That the principal is 3392.74 and the total due with interest and collection fee totals 4247.47. When he calls them is there a possibility of negotiating them down to a lower payoff amount or any tactics we should use? Or are we just screwed? Also it does state in a he next paragraph about sending in in writing to dispute the debt. Should we do that before we call them?

If your tax returns are being seized it is federal. Sallie Mae would no long be involved and would have filed a claim with your guarantor. ACT is a contractor for the US department of education and possibly other FFELP guarantors.

Your balance will include up to 24% in collection fees. They will waive a portion of the collection costs but generally any of the interest. You would have about a 10 day window to pay the settlement. Unless you have a good reason for disputing, I dont recommend it....the accounting is pretty tight.

Thanks, Soap Lady.

sallie Mae (or i mean the collection agency which is gc for sm)has already taken more than one of ur income tax returns and already garnished ur wages? Then obviously this has been goin on for a while. All u had to do was call the collection agency back or even.sallie Mae bc they Still may have worked w u if u actually came up w a decent payment plan in which u stick to n have directly taken from ur account each month. It must also b a reasonable payment bc low payments n them working w u in that aspect ceases to exist once default has rested its ugly little.head on in there laps. But ur bf needs to do the same thing. Call them n tell them what u can do n sign a contract to that extent as well. They want u to make an effort, they try n scare u at first just to c if they can n to c if u have the means to pay more. U say u can't come up w all of it, they give u a deadline on when u have to have it but, u call them at the very end of that deadline n say u tried but that much money is noway feasible by ne means n then they ask u what u can n r willing to pay, u tell them a comfortable yet worthy number n they will set it up for u. Its a rough start but if u r persistent on what u can pay they will end up accepting it (as long as it is reasonable) remember u had ur chance for low income options and very flexible repayments but once in default, u lose it all. It sucks. But maybe next time we all will handle it all differently. N jsyk student loans do get sold to different companys all of the time, that is another way loan companies can make money. From buying n selling loans. But they will always send u info days b4 it takes effect. N chances r its the same, but some company's offer better interest rates or etc. One of mine went from us bank to.wells Fargo. Its just like ur mortgage, i have had my house for 4years n its been sold twice. But the parties that handle the default action r not a buyer n that aspect, its a collection company hired to get the money that is owed to them but remember ... Basically u r hiring the collection agency bc the fees r paid by u.... I know its late but i hope u worked everything out. Or hopefully this will help someone else so get motivated n not procrastination. Remember they r very willing to help as long as ur loans rrnt delinquent or in default!

i don't speak frontier gibberish.can you translate the above please?i know it' is gobberish,but you are the guru on student loans.

Please ignore this poster.....obviously they do not know the difference between privates and federal loans. Once a loan federal loan defaults, you CANNOT work with Sallie Mae anymore as the guarantor pays them off. How did GC services come into this? Sallie Mae uses GC services but they also use many other agencies.

If you are going to post to this forum, please put down the cell phone and communicate IN ENGLISH...full words, capitals and periods. You are posting to a forum, not sending a text messasge.