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I have a student loan that is defaulted. The loan was made in early of 1990 and since i was of the country for the last 15 years i was not able to pay the loan. Now i am back but want to pay small amount monthly and requested a promissory note from the collection agency but couldn't provide one. What do i do

Is this a federal loan?

The CA is not in possesion of your prom note. A copy can be ordered from the guarantor, which probably is the DOE if this is a federal loan. Keep in mind that with federal loans they can collect even without a copy of the prom note. With the hundreds of thousands that are handled, prom notes occasionally are destroyed, or become unreadable. However there is still a paper trail and they can and will collect.

If this is a federal loan, you will have 15 years of accrued and capitalized interest plus collection fees. How much do you owe? Have you actually talked to the CA yet?

Sub: #1 posted on Sun, 08/10/2008 - 21:15

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Yes the student loan is all federal. How can i trust teh collection agency if they can't provide any document? My actual laon was around 50K but with iinterest and penality at this time it is 80K. I am just trying to make sure i pay to the right people. I don't want pay and some years later the holder of the promissery note will come after me.Should i make a deal with the DOE or look at my original loan and deal with the guarntor?

Sub: #2 posted on Sun, 08/10/2008 - 23:01


You can call the guarantor but they will simply direct you to the CA. When you are assigned to a CA with student loans, the guarantor will no longer work with you once you are assigned to a CA. Again with the age of these loans, I am pretty sure that the DOE would currently be the holder of the notes. The CA can put in a request for the prom notes...with the size of your balance, there will be muliptiple notes.

With your balance you will not be looking a small payments. Your monthly interest is in excess of $400 per month.

Sub: #3 posted on Mon, 08/11/2008 - 06:34

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Since it has been many years it was i guess asigned to too many CA. The current CA already promised to take out the penality fee, about 19K. I am trying to at least reduce all the penality and start paying the loan plust interest to the right agency. No way i can afford $400 per month. I jsut come back and i am looking for a job, and inorder to get a job that i want i want to clear or at least start making payments. If i don't then they don't get any money at all.I have already wrote a letter to the CA for the promossery note but they couldn't provide, so should i insist..and make all the contacts though letter..?

Sub: #4 posted on Mon, 08/11/2008 - 13:36


You must have misunderstood....they will not drop the collection fees unless you complete a rehab program or are going to settle the account off in full.

Starting paying on a default is in no way going to clear your fact any payments you make while in default will not even be reflected on your credit report.

No...all requests should be done over the phone. For the most part, they will not respond to anything in writing. So unless you want them to take legal action against you immediately, keep the phone lines open.

If i don't then they don't get any money at all.

Hate to tell you, but this is a federal debt. The will get their dont have a choice. They will garnish your wages without a court order and they will seize your state and federal income tax returns. With the size of your balance, you are reaching the point where they could in fact sue you and then garnish your wages at a higher amount and empty bank accounts.

Sub: #5 posted on Mon, 08/11/2008 - 14:56

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