Are there special exceptions with the harassment laws for student loan collection?

Hi Mandy,

Yes the same fair collection laws are applicable for student debts as well.
However there are options for you, during this hardship to handle your debts in a smoother way. If you can't make payments on one or more of your student loans, don't panic. It's important that you learn about your options rather than give up and slide into default.

In case of economic hardship you can defer payments on federal loans obtained after June 30, 1993 for up to three years if you are suffering an economic hardship. You are automatically entitled to this deferment if you receive public assistance, such as welfare or SSI. If you don't receive public benefits, qualifying is based on a complex formula that's a mix of your income, the federal minimum wage, the federal poverty level and your monthly or annual federal student loan payments. You will have to provide documentation of your income, such as pay stubs.

Other possible options include:

* postponing payments through deferment or forbearance programs
* eliminating the loan altogether through loan cancellation, or
* discharging the loans in bankruptcy.

If they are federal student loans they won't be able to discharge them in bankruptcy, they will remain on the credit report 7 years following payment in full of the account.

Was going to say that you can send the collection agency department a partial cease and desist letter telling them that you are not allowed to accept phone calls at work and to just contact you by mail.

Make sure to keep copy of the letter you send them, and send it certified return receipt requested.

[quote=Mandy]Are there special exceptions with the harassment laws for collection agencies trying to collect on student loans? I am getting harassed at work by an agency who is representing my school loan debt....I want to pay but, they are not working with what I can afford to pay.

Mandy[/quote]

No, the laws regarding harassment from creditors applies for student loans as well. They are not allowed to harass you for student loans. All you have to do is write them a letter to tell them that they should only contact you through mail. Tell them that your employer disapproves of creditors calling your job. They are not allowed to call your job if your employer disapproves of this.

When you said that you want to pay, does that mean that you are actually still keeping up to date with your payments. Even though you cant afford it now, you should try your best to keep up to date with your payments while you try to work something out with this collection agency. Because missing payments will ruin your credit and get you in even more trouble. So it is most important to protect your credit while you are trying to work something out with this collection agency.

I also have heard of cases where students are able to consolidate loans that have been defaulted. As long as there are no judgments against you and you have not consolidated in the past. This will allow you to reduce your monthly payments so your payments could be more manageable. Contact the education department where you received your student loan I hear that they are very helpful with people who are genuinely interested in resolving their debt. They may be able to direct you to your next course of action.

I cosigned a student loan for my son about 7 years ago. It has been unclear as to how he has handled this, but I have since filed bancruptcy. The trustee and I tried to locate the debtor many times and was told there was no record of it. My bancrupcy was discharged several months ago. Now, I am being written letters threatening lawsuits and garnishments. My son says he has talked with them about this matter and agrees to pay. how should I handle this matter.

Hi sandra,

Welcome to forums. Perhaps some collection agency is sending the letters; am I right? Since your son agrees to pay the loan amount they should not contact you. You can refer the contact details of your son to the agency and your son should handle the issue in future.

Make sure that your son pays the installments timely; otherwise you would be responsible for non-payment. Also remember that federal student loans do not have any statute of limitation, you have to pay it anyway.

Regards,
Bryan

Is the collection agency allowed to call all my family members and tell them I put them down as a reference for a loan? I don't know how they got their numbers.

Juanita,

Third party debt collectors should maintain the collection norms set by FTC. The rules made for debt collectors are stated under fdcpa. It says that collectors can call your relatives or references if you are not available at your address or they cannot locate you for somehow.

They can call your employer only to verify your employment. They cannot disclose your financial obligations to others. If they do, you can file complaint against them with FTC, BBB and Attorney General's office of your state.

However they can contact your co-signer if the debt is default. Juanita, are they calling you for student loan? If you find them violating FDCPA laws, you can also report against them with DOE. Keep us posted.

My wife has cosigned for a Sallie Mae loan with her son. It appears he may default and she is not able to pay due to her own obligations. She and I have co-signed together for our mortgage about four years ago. The Sallie Mas loan is about two years old. Can Sallie Mae come after our home to collect this loan even though I, the husband did not co-sign on that loan?

Your wife as the cosignor has the same obligations as the borrowers. This loan IS her obligation. Sallie Mae and the collection agencies with pursue both your wife and her son . Sallie Mae will sue which could lead to a lien against your home plus they could actively pursue wage garnishment.

I had a school loan from when I was taking classes online then my schooling was disrupted by hurricane katrina and I had to relocate. I have a family and I am doing everything I can to make ends meet and I am not doing very well at it. I still owe 4000 on the school losn but just can not afford to keep up the payments at this time. What can I do?

What is the status of your loan? Current defaulted?

I have a student loan that has gone to the wage garnishment department. Before the garnishment someone made contact with me and i want to set up a good payment system. This would be through the federal goverment collection agency. They said that I have to fax two pay stubs and quite frankly i do not feel comfortable with that. Do I have to do that?

Do you want to avoid the wage garnishment?? Then fax the stubs. You have to remember you are dealing with a federal loan.

I have a student loan in the US. I have since moved abroad and am now living in Europe. I work a few days a month, but it does not pay much and I am struggling at the moment just to pay bills. My husband is the main source of my income at the moment. I contacted my federal student loan company before I moved and told them I had moved abroad and that I was just starting out here and could not pay the loan. I asked for a 6 month deferment and was granted one. Apparently they lost the paperwork and repeatedly harrassed my parents regarding my loan status. My parents did NOT co-sign the loan for me, I have no co-signers. I do not even know how they got my parent's phone number or address, but the phone calls and letters are endless and it is causing great distress for my parents and they are given the impression I have 'ran out' on my loan, which is not the case. I have repeatedly been in contact with the loan agency and now they have a lawyer invovled and once again I filled out deferment forms to defer the loan for another 6 months--as well as again giving them my current address and phone number. However, they still refuse to send me any letters or phone calls and now they are not only harrassing my parents but they are also harrassing my friend through her mom's address whom I do not even remember giving as a reference when I applied for the loan years ago--not sure how they got her address. I do not know what to do because they are telling my parents I am going into deferment and sending letters to my friends now stating I am behind on my loans and they can not find me, etc. I am so frustrated because this is making me sound like a horrible person to my friends and family and in fact, I HAVE given them my current address AND filled out the proper forms which they say they have on file. Is there any action I can take about the way they are demeaning me to my friends/family and the fact that they will not contact me directly, but rather contact my friends/family? My parents have already changed their address one time and their phone number twice and they are still constantly getting phone calls and letters. These phone calls are quite nasty and my parents repeatedly tell the people she does not live here, she has never lived here, stop calling us!! Yet the calls continue. To be honest, that is quite cruel to continually harrass an elderly couple over their daughter's student loans whom they have NOT even co-signed for. So what are they even wanting from my parents or friends?! Also, can they go after my husband somehow who is European and has nothing to do with the US or my student loans there?

before you fax your pay stubs, you CAN 'block' your SS number from anyone else seeing it. You can use a black perm marker to do this. When I fax pay stubs, for WHATEVER reason, this is what I do. However...they DO have to have your name, address, etc...that kind of information, to deal with the loan. Ya know?

Co-signed with son for school loan. Can son consolidate all loans including the one I co-signed with him, when he finishes college?

These are more than likely private loans due to the co-signor. It is next to impossible right now to find a lender willing to consolidate. If he has federal loans he can consolidate those, but the private loans cannot be included with them.