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Hello, I have a $8000 student loan that was done with Sallie Mae that since has been in default for a couple years now...

Recently I got a letter in the mail from NCO Financial that they would be starting the process of collection of the defaulted loan by Treasury offset in 65 days if I do nothing.

I really want to take care of this but I know I can't make the payments they'd want. So, after doing some research on this site I want to ask them if I can make payments by citing the Higher Education Act and the Student Loan Ombudsman that way I know I can at least manage to pay them something and get this whole process started.

I'm just wondering if I can do all this by typing up a letter and sending it to NCO? I just hate telephones and even worse talking to people about money over the phone... I'll bite the bullet though if I have to but I'd much rather do it with the letter that way I'm sure of what I'm agreeing to because sometimes talking to people things can get cloudy for me at least...

- Brandon

my daughters loan is in default and she now owes $90000 she earns $8 an hour at the job her private school found for her - that does not pay enough for paying back loans - she has offered to make affordable payments but they just sent the loans to collections why don't they listen to and talk to these kids - she was promised all manner of good things when she got her degree and she worked hard to get it all she is asking is time to move up with her company to earn enough to pay them - these kids want to pay but you cant get $900 amonth from an $800 paycheck when to keep earning that paycheck she needs to pay for gas and living expenses also

Sub: #11 posted on Tue, 03/15/2011 - 14:11


The school made the promises....not the lender of the loans. It is like buying a purchase the car with a loan from the bank. If something goes wrong or there is a recall, the bank could care borrowed the money for the car of your choice. You would have to pursue the maker/dealership.

What did she go to school for that she is only earning $8 per hour? Why did she go to a private school when she could not afford it? Is this all private loans or a combo or private/federal loans?

Sub: #12 posted on Wed, 03/16/2011 - 12:08

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why is that you always SOLELY blame the borrower? What in the hell is a school doing driving students into that much debt anyway? Where is the moral conscious in that?

Sub: #13 posted on Thu, 03/17/2011 - 13:48


From my experience in student loan collections and as a financial aid officer with a major midwestern university, it IS the student who is usually at fault!!!
A)they attend schools they cannot afford...
I saw too many students attending private liberal arts colleges and coming out with a degree in say, philosophy. They leave a 4 year program, 8k in debt with NO SKILLS! They could have gotten that same BA at a local state school and lived at home for a 1/3rd of the cost.
I saw other student blindly sign up for private schools...lets say a cullinary academy. They pay $10k. However at no time during the enrollment did they ask "who hires from your school" "can I talk to previous students?" "how much can I expect to earn?" People spend more time kicking the tires of used car and checking car faxes than investigating the school that is suppose to give them a life long career.

b)Students ignore the warning signs...letters, calls....they dont keep their lender apprised of their current addresses. It takes days to default.....there are numerous calls, letters....if they dont respond or if they dont tell the lender where they are or how to reach them....well, that is how a lot of defaults occur. I would say 50% of all defaults on the federal side occur from the "head in the sand" syndrome.

I blame parents too. Parents promise the world to their kids and when the bill comes in "oh, I dont have any savings, I dont qualify for a parent plus loan because I had a bankruptcy last year..." the list goes on and on. Students have little to no savings and are clueless as to what or how they are going to pay. I have a middle school and a freshman aged daughters....I am already anticipating what their educational costs are going to be and they know NOW that if they expect more than a state school or community college, they will have to have the grades to get scholarships. Even for a state school I am expecting them to earn scholarships! They are working hard NOW for their wont happen if we wait.

We are not talking moral conscious....we are talking business. Private schools are expensive....if you have to borrow private funds to attend, you should NOT be attending.....there are always alternatives. The lenders are collecting for loans made to students for the school of THEIR CHOICE. No one is forcing them to borrow especially outside the federal loan system.

Sub: #14 posted on Thu, 03/17/2011 - 15:15

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No , a simple letter would not do , my suggestion will be communicating via phone and getting things clarfied before you agree things over letter , according to me , communication skills plays a part in these types of situations.

Sub: #15 posted on Mon, 09/10/2012 - 09:59

ceo.kohere ceo.kohere

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