please help re: Allied interstate and default student loan

Ok.....did they actually "say" they were going to garnish your husbands wage or was it the "wage garnishment unit" trying to get in touch with you?

No they cannot garnish your husbands wages. Period.

No it is not illegal to call his workplace. The only way it would be illegal is if he told them not to contact him at his work phone.

On the repayment. What he is setting you up for is called rehabilitation. The qualfiying payment for a rehab is 1% of your balance. (How much do you owe??)
No downpayment is required by the Higher Eduation Act to qualify for rehab...they can ask for it but they cannot make it condition of rehab.

Once you have made the 9 payments, you do not automatically qualify for ICR payments. ICR is the payment plan that is granted if you consolidate your loan with the US department of education.

I think I owe 24000 total included is fees of allied inter, actual owe for student loan is around 19000 . should I do the rehab? I am currently only working partime and I was worried they were going to garnish my husbands wages.
They said I should be in good standing after 9 mon. and my payments should go down after with ICR . Thanks so much for ur help

Quote:

should i request a debt validation and request payment of 9 months in a written agreement before I make a payment. Also is that true after 9 months my account will be out of default and in good status? thats what the guy said.
just thinking they may want payment right a way over the phone.
The other wierd thing is they started calling my house phone and I think it my cell phone with unknown caller and what showed up I think it looked like half a picture of my daughter showed up on my cell phone ( i have a TREO) I thoght it was someone i knew. That is scary...,.

Quote:

it seems about right the amount, but if they want me to start making payments should I ask for it in writing before I decide to start on paying 272$ for 9 mon/ will they give me like a recipet or bill for the rehab or somethin in mail first before I start paying.Is it ok to start the first payment over the phone or wait till I get somethin in mail regard rehab payments. thanks for ur help again.

yes I think the amt is about right . should I just start first payment over the phone reg 272$ for 9 mo. or do I get a form agreement before I start paying. just want to make sure they keep there word and makesure i get credited.. will they send an updated bill with balance after each payment. thanks so much

As I have already stated, you will get nothing in writing nor do they generally supply receipts....your cancelled check is your receipt.

In your original prom note, you agreed to pay your default off IN FULL on demand. Thus they will not send you anything in writing that implys a payment arrangement...this is the way it has always been done. Rehab is covered by the Higher Education Act.

sorry about reply twice wasnt sure if my first reply went thru. yes I guess its ok then to make a first payment over phone . amt is about 19000 plus the fees =around 24000. I appreciate your help . I was really stressed out. I will do the rehab. thanks again...

HI soap lady . I had one more question.. what is the best way to make payments. some people says not to give checking acct # just incase they over charge.. thanks for your help

Only with student loans are checks safe. The CA's are highly regulated with these government contracts. They risk loosing their contract with the government if they screw around with peoples accounts.

I have a defaulted student loan that I was told could be "consolidated" by a bank that would buy the loan, refinancing and a repayment plan not to exceed 25%! They told me that the banks were doing me a favor by consolidating 4 loans (I thought I had one loan) and taking me out of a default status, at which time I could receive financial aid. However, I was told that they do not know which bank would "pick up the loan and refinance" but could charge up to 25% interest on the outstanding $11,000 balance. Right now, the GSL Loan stands is accruing 8% interest. Gee, thanks but I'll pass. And you'll never know what rate you are signing and agreement to ahead of time. You really need to read between the lines so as to not dig yourself in deeper. To keep people from contacting you or your husband, put your request IN WRITING with a CEASE & DESIST request to no longer contact you or your husband by mail, phone or through yours or his employment, relatives or anyone who knows you (such as references, landlords, etc). Make sure you date the document and keep a copy for your records should an infraction of the fdcpa (Fair Debt collection Practices Act) is breached.

Sorry, but you NEVEr cease and desist a student loan collection company....that will result in a pretty quick wage garnishment. You also need to read this forum....you have a lot of wrong information.


The 25% charge is not interest...it is federally mandated collection fees, a one time charge. Student loan interest on GSL's are federally mandated,....your interest rate with be a weighted of your current loans.

You can go thru the US DOE to have your loans consolidated with the Direct Loan program. The link is in the stickies.

I have had dealings with this collection company at 18007913266. It was for a student loan debt. Let me tell you all this company is breaking all kind of laws. This company after I made my first payment I had no idea but I apperently shorted them 40 dollars. they Contacted my work and told my co-worker who answered the phone that I did not pay the correct amount. (My co-worker) I called A.S.A.P and I ripped this company to shreds and it did not help I insisted that I paid the amount we agreed on finally I told her if she called my work again I would own them! One week latter she conacted my work again and left a message with another co-worker saying that if I do not follow through with the full amount they would garnish my wages. At this time, I contacted student loans and informed them that this company was breaking the law. federal student loans said they would do an investigation I mailed both notes from the co workers with the office managers signature and also the office manager sent a letter to federal loans that the company was becoming disruptive and federal loans said after the so called investigation that they felt the company did nothing wrong.
I will not talk to them they cannot find me and when I make any payment I send it to federal student loans and it pisses them all off because the collection company wants the payment to go to them.

Hate to tell you but they can find your employer and garnish you without a court order if you do not have an approved payment plan set up. The DOE gets employment info via the IRS.

So this sounds bad but I lost my job shortly after all tha took place I was only working 20 hours a week. still out of work and cant make even 50 dollars a month. any suggestions please keep in mind Iwill not talk to this collection company.

Well I am the one who gave the employent info to them at the same time I said do not ever call my work and she did. I had 4 surgerys in 3 years that was why the payments stopped yes they can find out from IRS if they knew. I am no longer employed.

Yes they can Garnish your wages, it happend to me....they can garnish for up to 6 months at a time and ususally at 15%
I did the payment plan and now have the 9 month plan with the hopes of rehab after. They have allowed me to miss two payments to catch up with other bills without any problem, I have to admit once I calmed down they worked with me they wanted 300 but I was able to get it down to an amount more affordable to me. BUT THEY CAN AND WILL GARNISH YOUR WAGES BE VERY SURE TO MAKE A PLAN WITH THEM,

They can do a continuous garnishment, not just a 6 month one.

Hello...
I spoke to a Collection Agency otp today and told them where I banked (DUMB) and couldn't agree to their payment arrangements today due to my not have a job... I know I have to pay back my SL's but am wondering if they can levy or garnish my bank account!?!?!? Thanks!!!

not without a court order and as a general rule, federal loans dont use the court system. Are these federal loans?

Hey everyone out there? I'm am an agent with Allied Interstate, Department of Education. I was just scamming through the comments. The moderator, SOAPLADY, is a very good source of information! Please listen to her and follow all rules and respond to correspondence we send you, because we are doing it for your benefit.

Remember, unpaid FEDERAL student loans will and can be collected involuntary if fail to communicate, and/or fail to follow terms of agreement.

We can do this under the FDCPA.

We are not credit card, medical, or cell phone collectors! We are contracted by our UNITED STATES FEDERAL GOVERNMENT! Which gives us these options people!

Don't hang up on us for the benefit of YOU!

If your representative decides to Close and Return your account, you will be responsible for the money (25%) that DoE puts on there for fees and you will be sent to another collection agency with the responsiblity to pay them!

However, joining our Rehabilitation program, will remove them.
I am the agent that you would like to deal with because I give chances and work with my people. However, I have a job to do and DoE needs to be paid either way it go. So in turn, unpaid, will be garnished or litigated!

I'm not being an a-hole, just letting you know the options. The ICRP program is a consolidation program, not really recommened by me personally, but you do have that option if you are absolutly unable to make the payments. Initial eligibility, no previous consolidations or no judgements. If have either and you say that you can't do the REH program, we will garnish!

Just keep this info in mind, I will not give helpful tips personally, but I will help out for the benefit of the consumers and my company.

Thanks!

Let me clarify the 25% fee statement. Student loans are assessed 18-25% in collection fees post default by the guarantor. Close and return has nothing to do with them being applied.

Student loan collects as a generally rule are a different breed of collectors. They have to go thru much more specialized background checks for the specific clients.

I have a written Rehab agreement that I signed and sent in to the CA - Soaplady, you state these are never given in writing. Could you elaborate please.

Thanks!

The initial rehab agreement is an "information only" form, informing you of your rights to rehab under federal law. Wording on the initial one does not replace your contract and is not a committment that it WILL happen. There is also a formal rehab agreement, usually sent at the 9month mark or just before.

REPAYMENT AGREEMENT UNDER THE LOAN REHABILITATION PROGRAM

This letter confirms my acceptance into the loan rehabilitation program and my agreement to repayment of my defaulted Federal Family Education Loan ( FFEL) Program student loans held by the U.S Department Of Education ( Department).
I understand that compliance with this agreement is a prerequisite to the sale of my loans to the authorized, Department-approved lender.

PLEASE CHECK THE APPROPRIATE PARAGRAPH:

( X ) I understand that I must make nine (9) monthly payments in the amount of XXXXX, beginning XXXXX, with each payment due on the same day each month thereafter. I must make the full payments in the agreed amount within twenty (20) days of their monthly due dates over a ten month period. If I fail to make the required number of on-time payments in a ten (10) month period, I will need to begin a new series of agreed-upon payments in order to qualify for rehabilitation of my loans. **Payments to be auto-debited on the XXX of each month via XXXXX**

There are 7 other terms and conditions, about interest, fees, sale etc. Is this just a BS thing I signed then?

I have 1 more payment to make and then the 9 are over.

**Just realised this mighe be a hijack of the thread. Sorry!

To SOAPLADY's first comment after mines;

Comment was vaguely posted sorry.

Up to 25% of fees will be added on if current AG can't collect the federal debt and the consumer has to be assigned to another AG. The fee's that have been applied when arrived at Allied Interstate, will not be taken off and the consumer will be responsible for "X" amount of money that was mandated.

The rehabilitation program would be great for everyone who has a defaulted loan(s). It brings great options when the program is done (9 consecutive payments within a 10 month period). The main benefit is HAVING THE NEGATIVE/DEROGATROY MARK LIFTED FROM YOUR CREDIT BUREAU, ADDED BACK ON AS IF YOUR FEDERAL LOANS NEVER WENT INTO DEFAULT!

As far as the funding proccess, it does take time because we are human and the DoE reps are too. So there might be a chance for another payment to stay current in the program.

If you are one who have been told by an initial contact agent that the program is 6 months, I apologize. It's 9 payments consecutively.

If anyone has any questions about ALLIED INTERSTATE, DEPARTMENT OF EDUCATION, Please post on here and SOAPLADY or myself (any other A.I. DoE agents) will be happy to help!

Im thinking about dealing with Allied Interstate.. I defaulted on a private loan thru sallie mae.. I was wondering besides the mulitible calls... Is this a real company to deal with since they did offer me a settlement... Can I trust the company??? Anyone with any info please email me @ [EMAIL="demetriaharris@ymail.com"]demetriaharris@ymail.com[/EMAIL]...

Hello,
I am dealing with Allied Interstate regarding a defaulted student loan. Can they garnish your unemployment check ?

No...unemployment cannot be garnished

Dear soap lady, I almost have the same problem with the same agency. I understand my wages can be garnished but can they touch my personal assets or freeze my bank accounts? If they can freeze my personal bank account could they freeze a joint account whereas my girlfriend and I have together but she is not on the loan?

Thanks in advance for any help,

Ronnie

If it is a private loan, they must sue you first before garnishment. Then they can garnish you and go after bank accounts too. Anything in any account with your name on it is far game...it wouldnt matter if it were her money. She should probably get her own account.

Thanks

Its an old student loan.. is that any different?

It's an old us department of education student loan. I know I owe it and would like to pay them but they are impossible to deal with as I have tried unsuccesfully in the past. I just dont want them to touch my bank account. I know the government doesnt need a court order to garnish or take away federal benefits like tax refunds etc. I just cant risk them freezing our account and have checks bouncing all over the place. Once again any help is appreciated. It is under my name If my wife opens an account can they go after her? I dont see how they could since this loan is in my name and I took it out before I ever knew her. I just want to be safe.

Thank you very much

Have you looked into consolidating with Direct Loan Consolidation Loan Program? It will get you out of default and will automatically assign you to the Income Contingent Repayment plan based on your household income. They will ask for authorization to check you tax return but lets face it....you owe the government money.

and you know what? The government owes the whole world money..I have no problem paying back I just needed to buy some time.. I have two small loans that I will anticipate paying off this year. I have already paid off three credit cards and another loan and my credit rating is close to 700. I just dont want some credit agency that is known for poor and illegal collection practices locking up my money and bouncing checks all over the place not to mention ruining my credibility around town plus I dont want another bill. I know I can consolidate I am a great candidate for it but I am tired of giving everyone else my money through finance charges... Thanks for your help it's much appreciated..

Then why do you bother asking? You have options but you wanna do it your way. You deserve whatever action they decide to take because you choose not to be proactive.

What you are referring too is the Student Loan Rehabilitation Act. This is a an Act by the Federal Government as a last chance effort for folks who have fallen on hard times. Allied Interstate are liers and manipulators. They are offering their own plan that does violate the government act and your rights under the fair credit collections act. YOU DO NOT HAVE TO MAKE A DOWN PAYMENT! You can offer to pay a minimum of $50.00 per month, less if you have extenuating circumstances, for 12 months. At that point you will earn your title 4 rights back. They are required to find a buyer for your student loans and if they cannot find a buyer your original loan holder will be forced to reinstate your loans back. Also, if you complete the program they are required to take away any bad marks on your credit in regards to your student loans. Of course you may have to hound them to get it done. If they argue with you about any of this information, you need to explain that you know your rights and that the next call will be from your attorney. Only settle for what you can pay comfortably for that 12 month period. If you miss a payment or are late the plan will end and collection efforts will be picked up. My suggestion is for you to look up the act and refer to it in your phone call with the collection agency. You need to send them a letter stating they are to contact you not your spouse and to contact you by mail only. This puts them on notice. And last but only if necessary, contact an attorney!

huh?? You are giving out a ton of incorrect information...

1. Rehab is part of the Higher Education Act...no such law as the "rehabilitation act"

2. Payments on staffords are for 9 months, not 12....

3.Payments not $50 but are based on what you owe...generally 1% of your balance.

4.You earn your Title 4 rights back at 6 months.

5. Nobody can force anyone to buy your loan ....lenders dropped out the program en masse.

Should I go on???

I just got off the phone with allied... very harassing, scare, and threatening tactics-sales pitch. Are they for real? They didn't want to send me any written info, since I wasn't signed up yet????!! Sounds like all the same info that I see discussed above in terms of money and payment options though. Also, when I gave the sales person my info (income etc) they still asked for more than I obviously can afford, as in it is literally not there, it is all accounted for, on other bills. Doesn't that factor in somewhere?? Aren't there options for people who can't afford the ridiculous monthly fee?

Is this a federal student loan?

Ok...they will not send you anything in writing because you have a prom note....your prom note outlines your terms which technically is for balance in full on demand upon default.

I dealt with Allied Interstate last week, and the two gentlemen I dealt with were very understanding and helpful! I am seeing now, that I could have just agreed to monthly payments and not included my downpayment, but I am feeling good about doing the downpayment as well. I am looking forward to having this issue resolved and I am glad I called and talked to them! I am also glad I found this forum and can see that the company is legitimate! I feel like a HUGE weight has been lifted off my shoulders knowing my student loans will get paid! (Mods: Is it possible for me to post the contact # I have for this company, since I had such a good experience with this gentleman?)

Unfortunately posting a number wont help. They have a ton of student loan collectors and the majority of accounts are already assigned to a specific collector.

I had 4 federal student loans from 1984 that totaled about $5000. Two of the loans were used towards a school from which no degree was received. In fact one was used at a community college to get a few extra credits I needed to get my HS diploma ( I was sick in my senior year and missed several months of school) The other two loans were forgiven by the DOE since I had withdrawn from classes, but the school never returned the tuition. I have disputed a portion of the loans since day one, and as mentioned two were forgiven. Running the numbers over the years, I have now paid over $10,000 on less than $2,500 from the remaining two loans. I don't recall the previous few collection agencies, but I had set up payments with them, then stopped after a job loss. I have sent letters to my Congressman, the DOE and the former collection agency telling my story. Now Allied Interstate is calling years later to say I owe over $14,000 ....so in the end I would have paid $24,000 on a $2,500 student loan. This is beyond criminal. They got $10k from me and now want more. This is usury at it's worst. Allied called today a totally of five times, three to my home phone and two to my cell. They have even been calling my elderly parents asking questions but never identifying themselves. I should have borrowed money from the mob instead. I'm not paying them another cent.

The DOE doesn't not forgive loans just because you with draw from class. Funds may be returned based on your enrollment, but based on when you withdrew, you may not have been due a refund....that may be why the school did no refund.

Unfortunately you will pay whether it be thru wage garnishment, tax offset or having your Social security garnished. This is hardly criminal...you have had 26 years to pay this off and havent. Time to suck it up and get it resolved.

If you have paid on time and without allowing your interest to accrue and capitalize you would have been paid in full 15 years ago. Instead you defaulted and were more than likely subrogated by the federal government.....collection fees for default at up to 24% plus subrogation fees as well that were not cheap.

My wife recieved a letter from Allied today over a defaulted SLM student Loan. After calling them, they said if we pay 350 before the 25th we'll stop any more interest charges but I was under the assumption that debt collectors couldn't charge interest... 2nd, can they take money directly from my wife's mother's account to cover this as her name is on the student loan as well or do we have to be sued first? also, my wife's mother is filing backruptcy, is this loan covered under that since shes the main applicant?

Interest will not stop on the unpaid balance until the last penny is paid. In the case of student loans, the guarantor is charging the interest and is maintaining the account info and balance, not the CA. Also...what type of loan is this? SLM originates both federal and private student loans....sounds like a private loan since there is a cosignor.

At this time, student loans are non dischargable in bankruptcy.

Who was the student?

my wife was the student... and yes private. can they jsut take money form her account?

Take as in freeze or levy a bank account? Since this is private, both you wife and mil would have to be sued first. And SLM does actively sue.