A collection agency wants me to agree on a payment plan that i cant really afford so im wondering if i could just contact the Dept . of Education that i owe the $ to and set up a plan directly with them. Also this collection agency says that it can "garnish" my wages..Is that possible?? I already paid $100 to the coll. agency cuz they made me nervous but now im thinking that i shouldnt have even talked to them. what should i do?!?!?
2007-01-28 20:23:58 · 3 answers · asked by LaPalma 2 in Education & Reference ➔ Financial Aid
you might want to check with you colleges financial aid department. They will help you with this.
2007-01-29 00:30:06 · answer #1 · answered by Bethany R 1 · 0⤊ 0⤋
The most important thing is for you to pay off your debt in a manner that doesn't jeopardize you. That said, you can do a couple things.
Contact the DoE to see if you may repay it to them, however, most likely, they've sold the debt to this collection agency (C.A.) and you'll HAVE to deal with them. The CA can garnish your wages if they get a court order. Realize, the CA will allow you to negotiate your payment terms and would rather do so than to sell your debt again or seek legal recourse. You can try to negotiate the total payoff, the monthly payment and the number of payments. You can also request they take any negative info off your credit report as a condition of repayment. Now realize, they will make any of your wishes sound infinitely complicated and unrealistic on their part so as to maximize profits while minimizing effort. Also, your paying $100 on this account will most likely be seen as an admission of debt by any court if contested.
You can give yourself some extra time by asking them to provide you with a proof of debt paper containing the total amount owed on your part. This will generally give you another couple of weeks undisturbed to gather your ideas and funds.
Research the FDCPA to know your rights in this matter.
Good luck paying your debts.
2007-01-29 03:20:19 · answer #2 · answered by dlondo99 2 · 0⤊ 0⤋
YES!! CALL THE DEPT OF ED! While I am sure the collection people have convinced you to pay them and only them...the dept of ed probably would prefer working out a payment plan that WORKS for you. The collections agencey person is being pushy with you so HE/SHE can get a commission.
CALL THE DEPT OF ED ASAP. Just get a payment plan that works for you AND PAY IT! Otherwise you will end up in this same spot now. Not paying can screw your credit up bad...
Good luck and I hope it works out for you! ;)
2007-01-29 08:15:04 · answer #3 · answered by Anonymous · 0⤊ 0⤋