Student loan debt after reconsolidation twice

SO EVEN IF I ONLY OWED 3000 BUCKS IN PRINCIPLE DEBT,
THE INTEREST AND PENALTIES ARE ADDED ONTO THOSE 3G's...
AND HAVE ACCRUED ANNUALLY FOR 19 YEARS AT 2%
AND YEAR AFTER YEAR TIL..
WHENEVER?
WOW..
NO WONDER THE USA IS IN THE STATE THAT ITS IN...
THAT REALLY SUCKS.....
ps:
they, the DOE/BANKS/CREDIT CO's dont want to change it either,
but the mantra is MORE EDUCATION...
wow
LITTLE DO THOSE POOR SOPS KNOW THAT 63% OF ALL HIGHR EDUCATION BORROWERS END UP IN DEBT...AMD TAKES AN AVERAGE OF 15 YEARS TO REPAY...

God Save us all...

Tanks SOAPBOX

Well interest rates 19 years ago averaged 7-14% and would have been capitalized over the years.

Times are so different now. I saved for college while I was in high school and got the best grades I could and got scholarships. Being from a single parent home, I knew I could get help from my mom. I worked during the summers and during high school and college. I had debt when I graduated but I moved back home and worked to pay off my debt. Two jobs...corportate lawyer during the day and a bookeeper for a bar at night. I rode the bus and subway. Got all my debt paid off in 4 years. Nowadays, kids come out of school and they want a new car, new apartment and all the trappings while the student loan goes into economic hardship. Yes I know this is a generalization but I saw it happening too much . I worked at a public university here in minnesota and kids would show up for school expecting the system to support them and would be shocked that they didnt qualify for enough because mommy and daddy made too much. They ended up borrowing private loans. These were the same kids who would not take an on campus job because it would take away from their "college experience"...i.e. partying. However when it came time to go to cancun for break, they would find the $$$.

This is puzzling . There is a group of people who have defaulted on student loans. Some irresponsibly, some due to being underemployed in their educated profession, some had hardships to various degrees, and some a combination of the above including waiting so long to repay that the loan is now beyond their financial ability to repay. Meaning that were they to attempt to borrow that same engorged amount as an original loan they would in no wise be considered(turned down).

So, the original lender continues to insist on keeping interest, penalties, and etc tangled in the original loan to the extent that this group is trapped in a forever downward spiral. They can't afford the engorged loan payments(even for rehab) so the collectors garnish them a penance(for how long by the way) or if they are self employed pass them by for years and years.

OR the CA will move them to a new loan(those in this group who may have "married up" come into(borrowed I noticed a couple of your people doing insanity) in oreder to "rehab" and move into that insanely large salvation loan I mean rehab loan which is just another form of servitude for only 25 years or until you and your family are fortunate enough for you to die. And then their misery ends in the grave(that was the governments concession to make these loans differant than taxes). Doesn't the CA make any money to set up a "sub intertest" payback with the original loan? Now I understand why I have no hope that the government will ever be able to help the economy.

There is something REAL wrong with a loan(albit agreed to at this point). That has no escape. When the government took a look at the loan "sharks" of the credit card industry I am a little curious why the credit card industry didn't site this reference to pull off the untimate coup de ta and trap the poor credit card debt people until death. I'm just saying...

Two questions: 1) How long is garnishment? With all other debts resolved could a person ever borrow money on a house with a garnishment on their record?
2) What does it take to bring the DE into court? Have you seen a court case within the CA for these any of these defaults were talking about? Do they end up as uncollectible ever?

Garnishment can stay in effect until the last penny is paid.

Borrowers are generally not taken to court unless they are self employed or have balances in excess of $100K. When I first started collecting, there was a 60 Minutes episode where a Doctor in California bragged about how he owed $300k in defaulted loans that he had no intention of paying back. He showed off his half million dollar home, expensive vehicle and boat,all of which he paid for in cash. Edfund was not amused...within the year he lost the house to the state of california. Others had their IRA's and other assets seized...all by edfund. (They would visit us yearly and updated us on cases and collections) So the guarantors do utilize the courts and their power of seizure, particularly the state agencies.

Trapped forever? Hardly. Under the ICR or Income Contingent Repayment Plan with the Direct Loan Consolidation Program, after 25 years of repayment they will write off any remaining balance. There is also the Public Service Loan cancellation program along with other programs to assist borrowers in certain fields with repayment or cancellation of their loans.

I JUST HEARD FROM A COLLEGE FRIEND WHO BORROWED 7.3 GRAND, PAID THE STATE WHEN SHE COULD but OVER THE PAST 30 YEARS BUT THE IRS as well as the STATE "OFFSET" HER 30 GRAND.

I'M CURIOUS WHERE 22 GRAND WENT?

A CRIMINAL ACT COMES INTO PLAY WITH PEOPLE AT DOE?

HOW DOES THE STATE ATTORNEY GENERALS OFFICE APPLY IN COLLEGE LOANS & MONEY LIKE THAT MENTIONED?

REPAYMENT FOR 25 YEARS SOUNDS MORE LIKE A LIFE PRISON SENTENCE FOR MANY AT A DEAD END JOB.
SO THOSE PRECIOUS FEW CAN GET A PEICE OF SHEEP SKIN HANGING ON THEIR WALL?
YOU CAN KEEP IT....
I'LL B TH UNEDUCATED MILLIONAIRE..
NOW TO GET JUNIOR TO SEE WHAT I SEE?

Capitalized interest and 25% in collection fees.

Attorney general forwards the money to the guarantor.

Look, post secondary education is not a right. Nobody is forced to borrow money ....students could work their way thru school and pay cash. But many borrow irresponsibly and go to schools they cannot afford. Others go on to college with no idea what they wanna be when they grow up. Yeah know sometimes the borrower has to take responsiblity for getting an education that will lead to employment. Most college degrees qualify you to do nothing.

Youth is wasted on the young, for sure.

NOW,
IF A LOAN WENT INTO COLLECTION
AND THE CA DID NOT COLLECT,
HOW LONG DOES THE CA HAVE TO COLLECT B4 IT GOES TO ANOTHER CA?

DO THE FEES ROLL OVER OR IS IT THE SAME FEE UNTIL DEBT IS COLLECTED?

HOW DOES IT WORK?
I MAY WANT TO WORK FOR A CA...
SOUNDS LIKE GOOD MONEY.

The accounts are pulled and sent to another CA if no payments are received about every 6-12 months....depends on the contract.

The fees are assessed by the by the guarantor and they continue to grow on each placement based on the balance. Example, a $10K loan is placed at CA #1...collection costs of 24% or $2400. A year later the account is pull and placed with CA #2...balance is now $11K due to accrued and capitalized interest. Collection fees are now $2640. The CA gets paid roughly 9% on each payment....sometimes a little higher for rehabs, depends on the client. So say you paid a $10K account in full.....the CA gets $900.

Student loan collector work harder than a credit card collector as they have to work on volume. The average fee for a 3rd party placed credit card fee is around 20%...higher for 3 and 4th account placements. However student loan collecting is not difficult, if you have the patience and stamina. It takes time to build your portfolio.....I was collecting for 10 years and I had a few lean months. Turn over in the collection field is high....most are not cut out for it. However for those of us who stuck it out, we had a blast!! We worked hard and made damn good money!

I realize these posts are from 2006, but I don't care. It gives me a chance to vent and report on progress in the student loan game. I graduated in 1995 with $37,000 in student loans. Unlike our naive friend here who "knew nothing" about their student loans, I knew fully what I was doing, but was too stupid to stop. I wanted to go back to school and have the day school experience that I didn't have as an 18 year old, so I did it at age 35. Once I graduated, an additional ten thousand dollars was tacked on for consolidated interest (I think because I had lapsed on one of my other student loan payments while I was overseas doing a study abroad program (you think you're dumb?) So I started out with $47,000 for a double major bachelors degree (ouch, it hurts my brain to think about it). I have been paying for ten years at around 8% interest and I have finally knocked it down to a measly $36,000. I keep hoping they will allow student loan reconsolidation for those us who didn't get the good interest rates, but so far, no banana. Sorry for your troubles, but methinks we get ourselves into these problems and only we will get ourselves out. Billy Bob Bonano

How about a Goverment Bail out. Can anyone spell AIG, GMC? I know that the SoapLady is right in saying, you borrowed and now pay but I hate and abhore the fact that too many people have their hands in trying to collect money from me that is not even there and only death can stop it and it will.

A school in North Carolina is trying to Consolidate a student loan for 1,200 twice. The more I explain to them that the loan is in consolidation the more they say it isn't. I am looking at the paperwork from direct loan and telling them the loan has been consolidated, yet they are telling me it isnt. They have given 2 different set of numbers one to DMD and another to conserve something is not right

If the school has not been paid, then it may not have been included. you may want to look it up on nslds.

The school is the reason for the consolidation. Direct loans said they have been paid them they even gave me the check number. I have contacted the school several times. Something in this situation stinks

By the way I have looked it up but if the school fails to report the payment it can look as if you are in default. The whole ordeal is a mess

I sent a good faith payment USPostal money order with letter with the account number taken from the top of the Dept of Education, and it was returned to me with letter saying "zero balance on specified loan number".

The original loan was for 9,000.00 and now of course there is interest and has grown to 15000.

By them not accepting and returning my payment, what does that me for me. Is there a law that says if you try to pay a debt and it is not accepted, they have to forgive the debt???

What should I do?