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I Need Defaulted Federal Student Loan Help!

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I have a defaulted federal student loan that has been in default for many years. American Student Assistance is the guarantee and Permanant Recovery is the debt collector. The loan breakdown:

Loan Principle: $14,355
Interest: $251
Collection Costs: $2,582

They have taken my tax return for like three years and I’ve finally saved enough money to pay the loan and interest in full. I want to know the best way to go about paying the loan principle and interest off, but avoiding the collection costs?

Do I go directly to American Student Assistance and try to cut out the collection agency? They have been difficult to deal with and the collection fees are something that I really don’t want to pay, they have recently taken over the loan and have done nothing for me.

Thanks, Nate

Yes, contact the American Student Assistance directly and tell them that you want to pay off the debt. You can also request for a reduced amount.

Sub: #1 posted on Thu, 12/27/2018 - 21:44

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You must work thru the collection agency....they are authorized to settle on collection costs. Keep in mind you will be taxed on settlements over 600

Sub: #2 posted on Thu, 12/27/2018 - 21:45

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