College Loan Debt Collection Question

[Matariki]

I'm hoping someone can point me to information about dealing with a predatory college loan problem. For the past 4 years it has come up around this time of year, since these people have stolen my entire tax return, and I don't know what I can do about it.

I had a very small loan of $1,250 from my last semester *way* back in 1980. I paid it off over 15 years ago and therefore have no records of payment anymore. Plus, I often paid with money orders. About 4 years ago I got a bill for nearly $6000, and although they have taken more than $3000 in tax refunds the amount doesn't seem to go down. I have never contacted them because so far it hasn't appeared on my credit report and since I can't prove I paid it I'm afraid of opening a can of worms - figured I'd let them take my refunds which I've minimized since that first year. Probably *not* the best strategy.

The amount they have listed as principal is about twice the original loan, the interest is equal to that and the "fees and costs" are nearly equal the original loan. I can't imagine any of this could be legal even if I hadn't paid the loan off.

Anyway, if anyone can point me to info on the web or somewhere, I'd appreciate it. My searches have yielded nothing but gloom. Or if anyone has had a similar experience - what did you do? I'm thinking about getting a lawyer, but again I'm afraid that any contact with them will land this on my credit report and I'm about to buy a house.

Thanks.

PS - I would love to do something to fight these horrible college loan laws. I feel relatively lucky in that I never owed that much. I can't imagine what it would be like for folks who owe $20, $40k or more. What an uncivilized country we live in.

[WolverineDG]

1. I would think they have to prove you owe the debt

Since they've already taken $3000 from you, I'd discuss this with a lawyer in your state.

dg

[pk_du]

2. How bout some info about the loan company that we can get

our teeth into?

[Matariki]

3. us department of education

but apparently sold or aquired in some way by a credit company called 'nationwide credit'.

[pk_du]

15. Try this for starters...more to follow

http://www.parentplusloan.com/credit_report/repair.shtml

[pk_du]

16. Interesting info on "Nationswide Credit" here

http://www.namiscc.org/Experiences/2002/LonnieRigsby.htm

[newscott]

32. Hey that website has the exact same layout as my town's website!

[pk_du]

18. More interesting advice here

http://creditboards.com/forums/index.php?s=654f15bbcb8a1de87d71b57dce8222dc&showtopic=71122

[Matariki]

21. thanks for all the info

what a bunch of creeps, huh?

[pk_du]

25. Yes - I have 2 in college now and dread them having these

kinds of problems.

As others are saying here - its time to stand your ground - contact them - tell them you know your rights - even get a lawyer if you can. This Govt Ed website says it can give you their info on your loan(s)

http://www.nslds.ed.gov/SAStatic/PrivAct.asp

[smtpgirl]

22. FirstCredit and others, collection agencys that aren't in business

ANYMORE

[electron_blue]

4. good luck, sounds like a mess.

In the meantime, change your exemptions on your W4, so that come next April 15, you write a check to the IRS and "they" dont' get your refund.

[MissWaverly]

5. my honest opinion is that you will have to deal with them

even for the smallest amount, with charges and fees you will be fighting an ever increasing tiger. When I lived in Philly, I saw people lose their homes over disputed water bills. I
would write your congressman, say that you in good faith, paid off this loan 15 years ago
and that you need help. They can help with this. They have to retain records, 15 years is
nothing for a government agency, they probably have them on microfiche somewhere. PS, once
they find you have paid, then you will have to petition or something to get your frozen refunds
back. Believe, the government does not throw away records.

Miss Waverly

[donco6]

7. And what MissWaverly said.

Yes, if it does turn out to be a mistake (and it does happen), work with them to get your money back. They should have very clear records on what you've paid and it shouldn't be a problem. If it is, then you can go to small claims court and file to get your money back. You don't need an attorney to do that, just good records.

[Matariki]

10. 17 years ago.

no records.

[Matariki]

8. But if this is the case - how did the credit agency get the info?

I'm assuming that the dept. of education thinks the loan wasn't paid. When I first got a notice - right after they took my tax refund, $2000 that year, I did some research and found that this happened to other people. The burden of proof was completely on them. That's why I took the avoidance tactic.

[MissWaverly]

11. let's start with facts

if you paid on a government loan, then they will have the records of the payments that you made,
if you "defaulted" then the interest rate is accruing on that sum and you are just spitting
on a forest fire once a year if that thing is still unpaid and collecting interest. Write whichever of your congress critter, you think is the most approachable and explain. You have no facts, the loan was 15 years ago and you no longer have receipts and are being asked to pay on
something that you believed that you paid.

[smtpgirl]

23. And those "DEFAULT" collectors will inflate

the loan be 4 times, paper will prove it, just get all the paperwork that you have and give it to them. If it is "true" paperwork, there is nothing to lose

[smtpgirl]

24. you are right, if there was any monies owed

the IRS would have collected long ago

[donco6]

6. Nationwide Credit is a collections agency.

You simply MUST contact them. You have to find out what it will take to pay off the debt, which never goes down because they can charge whatever fees they want and keep you in debt forever. You need to contact them and find out the details on the debt. For all you know, it's been a mistake. But if not, they'll have the paperwork to send you. If it turns out to be legit, you HAVE to figure out a way to transfer the debt to something else - do you have any collateral at all? The longer they keep your debt, the harder it will be to pay off. But if you can transfer it to a reputable bank or savings/loan, you'll have more control and you won't pay the fees.

[Matariki]

9. no I could pay it, but it pisses me off

since 1) I *already* paid it and 2) when the hell did the law change so that a collection agency can charge whatever fees they feel like. It's just plain wrong.

If I do contact them, it will be through a lawyer. When I googled the name of the company I noticed that they've had a few lawsuits for violating FDCPA laws.

[MissWaverly]

12. don't go to a lawyer yet start with your govenment rep

you are entitled to information on your payments under the freedom of information act,
get the facts first before you jump into the pay by the minute legal beagles

[smtpgirl]

26. GET YOUR PAPERWORK

[smtpgirl]

34. Are you a "candidate" for a faulty collection?

Did you owe more than $100? Then a "NEW" collection agency can get you to pay the debt. It is a tactic that they use. PAPERWORK is wnat you need

[Epiphany4z]

13. I have an old student loan

that I defaulted on. They also attach our taxes. I usually have to file an injured spouse form since I made the debt before I was married and I don't work now they have to give back money to my husband after they take it each year.

Now on to your problem. If you paid this loan before they should have a record of that at the dept of education. I am making payments on my old loan now and I get a receipt each month from them. At some point years ago they stoped charging me interest or penalties i owed more than you do so..

you should definitely contact the dept of education. They are the ones attaching your taxes. They will have all the info . My loan is over 20 yrs old. they have every bit of the info on it. If you paid it and there is a snafu they should be able to find it and fix it . If you didn't pay it or somehow left a portion unpaid they will work with you and stop charging interest and penalties . They are really easy to work with once you get in touch ..but nothing will change unless you get in touch with them.

feel free to email me if you want

[pa28]

14. For future reference read this . . .

http://moneycentral.msn.com/content/Savinganddebt/Managedebt/P74812.asp

Good luck.

[ScreamingMeemie]

17. Do you have copies of the papers you signed when you originally

took out the loan? the crap thing about student loans is that many times they have horrific interest rates attached and horrid penalties...all in the hopes you will be scared enough to pay it back. Good luck and I hope you reach a happy compromise.

[Matariki]

19. i went to art school to be a painter in 1976

i'm lucky i have this year's w-2 forms ;-)

[smtpgirl]

29. "student loan mills"

are like "puppy mills"

They just keep going and going, first off, if it is a "collection agency", PLEASE do not contact them.

Contact the Federal Dept. of Education, student loans division

http://www.ed.gov/searchResults.jhtml?ct=89263017&cl=1

[Matariki]

31. thanks smtpgirl, that's useful info.

[smtpgirl]

20. You'd had better get EVERY COPY of what you have paid!!!

I paid on a $5,200 loan for 10 YEARS, long story, but get every piece of paper you can get your hands on for you defense, or YOU WILL BE SORRY.

If you need tips, I will give them to you, serious!!!!!!!!!!!!!!1

[The Straight Story]

27. Offer to settle for less, they did for me

When I tried to get my first house loan two years ago I had to go and clean up my credit. I called the collection agency for old student loan (which I never actually got either - I got a grant and quit school before it ran out due to wife's health issues. They kept the loan and then went belly up a few years later. My wife was in same class with me and they did not do the same thing to her) and I told them I wanted to settle it.

I paid about half what they were asking (It was 900, original loan was like 200, I paid 450 and was done).

[Matariki]

28. Truthfully, I don't care about this as my personal problem -

I want to find people who are working to counter the stupid law that allows this, and throw my energy in with them.

I can't imagine what this country is going to be like when only rich people can get an education (or are we there yet?). And the arts? Forget the arts in america - or at least people educated in the arts. And that probably goes for teachers and any other profession that doesn't pay enough to cover astronomical loans.

When I was searching for info on my legal rights I read horror story after horror story of people completely screwed by being unable to pay off enormous loans - until finally their meager social security checks were being absconded with. Balls.

[smtpgirl]

30. Don't you get it??????

IT IS LEGAL LOAN-SHARKING!!!!!!!!!!


You have no recourse, get your paperwork!!!!!!!!!!!1

[Matariki]

33. you keep saying 'get paperwork'

you mean from the dept of edu? because i sure as shit don't have *any* paperwork anymore.

[smtpgirl]

35. call and find it, do not call the "collectors" PLEASE

[smtpgirl]

36. I was in this "ABYSS" before, I know, do NOT CALL THE COLLECTORS

All you do is open the case again.

There are reports on collecting "old" debt, if you confirm, they will expect you to pay the balance.

PLEASE contact the US DEPT OF ED for something like that.

For all you know, you missed paying $52 of the loan balance, now it is at $5000.


DO NOT CALL THE COLLECTORS

[Matariki]

37. thanks.

that's why i haven't called them. i didn't know i could call the dept. of education. that was the info i was looking for. thanks all.

[elehhhhna]

39. Lower your withhoding by raising your deductions, VOILA!

No tax refund, no confiscation.

[MissWaverly]

41. this is not about education it's about a cash starved govt.

they are looking under the coach cushions for money, I heard that they arrested two drug
dealers and wanted to take the gold fillings out of their teeth, claimed that they were
assets, but the defense attorney intervened. Also, they are using this student loan
back pay issue as a rationale for not paying people their social security money. Hope
you get this cleared up. good luck

[Mr.Green93]

38. Here is another site to check out (good luck)

http://www.budhibbs.com/coll_to_avoid_list.htm

[novalib]

40. Student Aid Ombudsman

The U.S. Department of Education's Federal Student Aid Office has an Ombudsman's Office.

I have a couple of friends who have found that office to be enormously helpful in straightening out messes.

Here is their website:

www.ombudsman.ed.gov

Good Luck!