About rights when it comes to collection on a federal student loan, PLEASE HELP!?

Question

My husband had a Perkins loan that was originally for around $800. The fact that it existed completely skipped both of our minds (especially since we weren't getting any documentation or calls on the loan). Then in December 2006 a collection agency said we now owe $1554.78. They said we have until the end of January to pay it in full or they "will take the next necessary steps" (which they won't tell me what these steps might be. I told them we could pay them off in 3 months ($500/month). They said they won't except a payment plan. We don't qualify for any personal loans or the like. I've heard that if we pay them some of the money that they can't take action against him/us. I've heard other people say this doesn't apply to federal loans. I know this money is our responsibility and we messed up. I'm just trying to figure out what we might be able to do or what might happen if we don't pay the full about by the end of this month.
THANK YOU FOR ANY HELP!!!

full amount NOT full about (sorry lost myself in typing)

Answer 1

Please note, this answer is meant for purely informational purposes, and is not intended as legal advice or representation.

The collection agency is being a bit unreasonable. You can request in writing a statement of your account, so that you can verify that it is correct, and reaffirm your offer to pay $500 per month (assuming the debt is owed) in writing. This will be proof that you were making reasonable attempts to settle.

Given the reasonableness of your offer, they would be foolish not to accept it. The "next necessary steps" would, at worst, involve filing a lawsuit, and it would not be worth their time and effort to do so if you are willing and able to pay within the time it would take for them to even get the case into court.

Good luck.

Answer 2

The next step(s) could be anything from another phone call, a lawsuit, transfer to a different collector. They won't tell you probably because they don't even know.

Paying them less than the full amount won't keep them from pursuing whatever "action" they feel is appropriate.

There are several things that you could do. First, make sure you get the complete name and address for the collection agency. Next, write them a letter and demand that they provide you with evidence that you (your husband) owes the money. It could take them a while to come up with the evidence. If they do come up with a contract, or whatever, offer them 50 or 60 percent of the balance as a compromise. Compromises can effect your credit, but if you don't have all the money, it is a good way to satisfy a debt. If you work it right, you could aviod paying anything for at least several months. In the meantime, save your money.

Good luck!

Answer 3

well yes it is ur responsibility and if u havent paid they have the right to charge u more. and also there is no way of getting out of it. student loans are like death and taxes. i took a course about this a few months ago so i know a litle bit. im not sure if they can not let have a payment adjustments if u really cant pay for the whole amount all at once. u shoul really talk to an attorney. this is a very serious matter. good luck!!

Answer 4

Try the sites below, make sure to change the location/state in which you reside. The last site is an affordable way to get access to an Attorney and know your Legal Rights! They will help you in this matter.

Hope This Helps!

Answer 5

i actually do no longer think of it particularly is legal. i do no longer comprehend the particular regulations the two, yet I even have student loans, and that i became having subject concerns with getting them consolidated. The brokers does no longer even talk something with my husband, till I had confirmed my detect with them first, and then gave them my authorization that it ok for them to talk counsel with him besides.

Answer 6

i suggest going to this site and filling out the form. it'll help you lower your student loans significantly!