Collarspace Discussion Forums


Home  Login  Search 

Sub with default student loans


View related threads: (in this forum | in all forums)

Logged in as: Guest
 
All Forums >> [Casual Banter] >> Off the Grid >> Sub with default student loans Page: [1]
Login
Message << Older Topic   Newer Topic >>
Sub with default student loans - 5/8/2006 5:46:18 AM   
Lashra


Posts: 4900
Joined: 2/9/2006
Status: offline 		A sub friend of mine is having alot of problems with her finances. She has a bankruptcy and student loans in default, this has been going on for years now.  She has also lost all her paperwork due to moving around between Masters.

Can anyone here tell me of a credible agency this woman could contact to get some help? I suggested pulling a credit report and see what agencies are after her or perhaps contacting the college she attended for information. Mind you she's used to having someone else handle things, so would a lawyer be better?

Thanks!

~Lashra
Profile   Post #: 1
RE: Sub with default student loans - 5/8/2006 5:53:03 AM   
michaelGA2


Posts: 1533
Joined: 4/26/2006
Status: offline 		try seeking out a local Consumer Credit Counceling Center in Your area. they are generally a non-profit organization and sometimes are able to help in these matters.

_____________________________

Are we having fun, yet?

(in reply to Lashra)
Profile   Post #: 2
RE: Sub with default student loans - 5/8/2006 7:51:13 AM   
Termyn8or


Posts: 18681
Joined: 11/12/2005
Status: offline 		When it comes to credit, forget it. As long as they don't have a debtor's prison or you owe child support, which can cost you your driver's license, they can screw themselves.

Right now my credit is immaculate, I am a never late. One day this will change to never pay. As long as I can manage to cash my paycheck everything will be fine. Either rent or pay your house off and do not refinance. Credit cards and student loans are unsecured.

If you see a possible need in the future to have good credit, it may well behoove you to use a credit couciller to perhaps stop the interest and/or late charges. Then you deal with the debt as your situation allows. If you work and can't get out of paying taxes, increase your witholding so they don't take a big income tax refund.

If you have a bank account, don't pay the government, a doctor/hospital or a lawyer with a personal check. If retired, go through the hassle of cashing your check every month, forget direct deposit. Get the cash in hand, leave about $20 in the account to keep it open.

That is how I am going to live after what I call "the big one". Going to simply cast off about $1,000 a month in debt service, after I buy more stuff of course. The house is paid off and a quit claim sits in the safe.

I have been paying higher interest because others have pulled this shit, but my turn will come. Before you do anything like this you need to take into account your age and standing (financially). See, I will simply not need credit after "the big one".

Consider it carefully, it is a one way street. After all, if you lived in a good country you wouldn't be paying for education. Education is something the elders owe the young. Thing is now, even if you pay for an education you don't get a good deal.

Fukum all, but think long and hard about it first. There are consequences and you will have to deal with them. It costs, but in my case I will be ahead at least $120,000. Don't go rouge over a stupid $10,000, it is not worth it. Payments on that would be less than your rent, these days even your gasoline. Put things in perspective.

This is by no means a solution for everyone, but it exists. Fukem all. Think about it. (very carefully)

T

(in reply to michaelGA2)
Profile   Post #: 3
RE: Sub with default student loans - 5/8/2006 8:39:41 AM   
Alumbrado


Posts: 5560
Status: offline 		Credit 'counselors' negotiate a settlement of debts by offering creditors a chance of getting something instead of writing the debt off...they do this for a fee, sometimes exorbitant, sometimes reasonable.

They usually can't do a thing with student loans, which don't have to be written off.
Better to pay an experienced attorney to explain all options. IMHO.

(in reply to Termyn8or)
Profile   Post #: 4
RE: Sub with default student loans - 5/8/2006 9:28:22 AM   
Termyn8or


Posts: 18681
Joined: 11/12/2005
Status: offline 		Yes, student loans are a different animal, but they are still unsecured. You don't handle them the same as credit cards.

The thing is to realize what they can and cannot do to you. Some people actually think they will be thrown in jail for not paying.

One thing, to the OP especially, the balance on a student loan does not increase like an unpaid credit card. If you don't pay on a credit card with say $10,000 on it, you might see it balloon to $20,000 in a couple of years. This is not so of a student loan.

Penalties are not all that severe. And remember, many people live very good lives without credit. It is good to have, but simply not essential to life.

T

(in reply to Alumbrado)
Profile   Post #: 5
RE: Sub with default student loans - 5/8/2006 10:12:26 AM   
Shayna


Posts: 205
Joined: 1/16/2005
Status: offline 		Actually student loans do increase over time. They compound the interest and add it back into the principal. Once you are in default, it's very difficult to get out, but there are a few programs that help a person do that. Consumer Credit Counselors are in every city and a great resource. 

(in reply to Termyn8or)
Profile   Post #: 6
RE: Sub with default student loans - 5/8/2006 10:26:09 AM   
Lashra


Posts: 4900
Joined: 2/9/2006
Status: offline 		Thanks for the replies I will tell her to contact a Credit Counselor right away so she can get herself straighted out.

~Lashra

(in reply to Shayna)
Profile   Post #: 7
RE: Sub with default student loans - 5/8/2006 11:49:32 AM   
MsIncognito


Posts: 742
Joined: 5/24/2005
Status: offline 		I think it's a good idea that she sees a credit counsellor or a lawyer and gets herself back on track. It's not just about loss of credit, it's about loss of credibility and that's a lot harder to recover from. I deal with people every day who have bad  credit and it's amazing how many of them just don't care (and get ornery when "we" actually hold them to the agreements they signed... expecting you to keep your word...amazing, huh?)

(in reply to Lashra)
Profile   Post #: 8
RE: Sub with default student loans - 5/8/2006 1:22:06 PM   
MHOO314


Posts: 3628
Joined: 9/26/2004
Status: offline 		Lashra, I strongly agree with the use of the CCC, they negotiate a reduction of the payments, figure a monthly lump sum payment and do the distribution--she can get it auto withdrawn as well. They will also help her make the right answers so she gets the most help--and it fixes the credit report---now as for state incurred debt don't worry---that varies from state to state as to the length of time a state will hold a bad debt open. Also as stated, a debt is entered into with the original signer--once rhat debt is sold to another company without the express permission of the signer---it becomes null and void---( not many people know that)---school loans however as stated are merciless and are bound by tighter laws and even if one has a clean credit rating, student loans can trash it.

< Message edited by MHOO314 -- 5/8/2006 1:23:06 PM >

_____________________________

SLUTS: Southern Ladies Under Tremendous Stress...

Mistress Hathor


(in reply to Lashra)
Profile   Post #: 9
RE: Sub with default student loans - 5/8/2006 1:23:37 PM   
Gauge


Posts: 5689
Joined: 6/17/2005
Status: offline
quote:

Yes, student loans are a different animal, but they are still unsecured.


Your information is incorrect. Most all student loans are secured loans. I know this because I have gone through it. They can garnishee your wages (even if state law says otherwise), they can take your tax refunds and the interest compounds on the loans while in default.

It would be best to find out who holds the defaulted loan. You can work with that company and make a "good faith" payment of a certain amount (whatever they ask) and then set up payments. When you pay consistently for one full year your loan will no longer be in default. Credit Counseling services are good, but honestly why involve a middle man if it isn't really necessary?

_____________________________

"For there is no folly of the beast of the earth which is not infinitely outdone by the madness of men." Herman Melville - Moby Dick

I'm wearing my chicken suit and humming La Marseillaise.

(in reply to Termyn8or)
Profile   Post #: 10
RE: Sub with default student loans - 5/8/2006 1:48:17 PM   
UtopianRanger


Posts: 3251
Status: offline
quote:

ORIGINAL: Lashra

A sub friend of mine is having alot of problems with her finances. She has a bankruptcy and student loans in default, this has been going on for years now.  She has also lost all her paperwork due to moving around between Masters.

Can anyone here tell me of a credible agency this woman could contact to get some help? I suggested pulling a credit report and see what agencies are after her or perhaps contacting the college she attended for information. Mind you she's used to having someone else handle things, so would a lawyer be better?

Thanks!

~Lashra


Hi Lashra.....

There's been some great advice given here. Having grown up under the tutelage of an attorney -- Who specifically dealt with various types of monetary issues -- I strongly suggest your friend seek the advice of counsel before they talk to a credit counselor. It's not that expensive for a consultation and it's very worthwhile.

Even though a lot of these credit counselors work for so called ''not for profit'' organizations, many of them are subsidized by the actual creditors themselves, so they are essentially shills. { and not true advocates for debtors}

Last time I checked, student loans were one of the few non-secured debts that they don't ''charge off''. However, an attorney may be able to tell you how to negotiate directly with them, and maybe they'll come to some kind of settlement that knocks off the accrued interest if the principle is paid in full. It's kinda like the reverse of ''creative financing''.


Anyways.... I wish both you and your friend the best of luck!


- R

< Message edited by UtopianRanger -- 5/8/2006 1:52:05 PM >

_____________________________

"If you are going to win any battle, you have to do one thing. You have to make the mind run the body. Never let the body tell the mind what to do... the body is never tired if the mind is not tired."

-General George S. Patton


(in reply to Lashra)
Profile   Post #: 11
RE: Sub with default student loans - 5/8/2006 8:18:28 PM   
Termyn8or


Posts: 18681
Joined: 11/12/2005
Status: offline 		MHOO;

I actually did not know that. Of course I have not had to know that. The last time I dealt with a bill collector was about 20 years ago. Good ammo for next time though.

Guage;

Secured with what ? What I mean by a secured loan is like a mortgage on a house, no pay, they take the house. Or a car, here comes the repo man. I guess everything is secured to some extent, but I was referring to a specific lien on a specific proerty. Student loans are usually unsecured in this respect.

___

Let me add this, when you are 49 and have $90,000 worth of equipment unsecured, with a looming $1,000 in debt service per month, blowing them off might be an option. But when you are say 30, and one day want to buy a house, think long and hard about it.

A bankrupcy is not a magic wand that makes the debt go away, you still owe it. Bankruptcy is simply an estopment that prevents your creditors from taking legal action. Recent legal changes have made them more reluctant to give you a discharge bankruptcy now (in the US).

The thing people don't realize it that when you open a bank account, they don't broadcast the information to every possible creditor you might have. These people must find it. Usually the way they find it is when you use the account for a transaction with any entity that reports to the credit agencies. The only other way they can find your money is by doing a sweep, which is not cost effective unless the debt is great, and they have a reasonable possibility of finding significant assets.

About the debt being invalid when sold to a collection agency, I will reserve judgement until I see it in the UCC. It may be true in many states, or a few, but unless it's in the UCC don't count on it working. If it were there my people would have found it by now, and I would have it with the section number etc.

My last studies of the UCC were to find "Option to accelerate at will", introduced in 1991. What this means is that they can foreclose on your home if you default on any credit payment. It is very rarely used as it would atert the public to the treasonous wording of the UCC.

This could open up a can of worms, about a 55 gallon drum. People might then scrutinize other law and find that they must've been written by traitors, or foreigners. The Trading With The Enemy Act comes to mind. A few hundred executive orders might cause trouble as well.

If people really knew, well, there might be a revolution.

T

(in reply to UtopianRanger)
Profile   Post #: 12
RE: Sub with default student loans - 5/8/2006 10:01:09 PM   
Gauge


Posts: 5689
Joined: 6/17/2005
Status: offline
quote:

Guage;

Secured with what ? What I mean by a secured loan is like a mortgage on a house, no pay, they take the house. Or a car, here comes the repo man. I guess everything is secured to some extent, but I was referring to a specific lien on a specific proerty. Student loans are usually unsecured in this respect.


I am sorry. When I read your statement I misunderstood it. What I meant by secured is that they do not discharge the student loans and they MUST be paid back. My apologies for the confusion. It has been a very long day.

One other thing when dealing with a defaulted student loan, you may have the option of settling it by making an offer of 80% - 90% of the total loan. This settlement must be paid in full when agreed upon and cannot be stretched over time (at least that I am aware).

_____________________________

"For there is no folly of the beast of the earth which is not infinitely outdone by the madness of men." Herman Melville - Moby Dick

I'm wearing my chicken suit and humming La Marseillaise.

(in reply to Termyn8or)
Profile   Post #: 13
RE: Sub with default student loans - 5/9/2006 7:50:44 PM   
Evanesce


Posts: 2325
Joined: 9/14/2005
Status: offline
quote:

I am sorry. When I read your statement I misunderstood it. What I meant by secured is that they do not discharge the student loans and they MUST be paid back.


That's because the majority of student loans are backed by the federal government, which is why they can take your tax refunds where other creditors cannot.  It's also why they're one of the fastest to file garnishment papers to get their money in the event of default.
 
However, if the debtor makes a good faith effort to make steady payments in accordance with the agreement, most of these student loan grantors will work with you, and even grant up to six months' respite from payments under certain circumstances (like unemployment, for one).

_____________________________

Denise

Give a slave what he truly needs, and he will do what you want.

"There's never a hero in a battle of ego." - Big & Rich


(in reply to Gauge)
Profile   Post #: 14
RE: Sub with default student loans - 5/9/2006 8:07:03 PM   
Level


Posts: 25145
Joined: 3/3/2006
Status: offline
quote:

ORIGINAL: Lashra

A sub friend of mine is having alot of problems with her finances. She has a bankruptcy and student loans in default, this has been going on for years now.  She has also lost all her paperwork due to moving around between Masters.

Can anyone here tell me of a credible agency this woman could contact to get some help? I suggested pulling a credit report and see what agencies are after her or perhaps contacting the college she attended for information. Mind you she's used to having someone else handle things, so would a lawyer be better?

Thanks!

~Lashra


Here is a link to show her how to get a free credit report. http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm

Be careful of just jumping in to cahoots with a credit counseling agency, some of them are more trouble than they're worth... look for a non-profit one... here are a couple of links that might help as well. http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.htm and http://www.consumeraction.gov/caw_credit_resolving_problems.shtml .

Good luck.

Level

< Message edited by Level -- 5/9/2006 8:08:04 PM >

(in reply to Lashra)
Profile   Post #: 15
RE: Sub with default student loans - 5/10/2006 5:14:29 AM   
Lashra


Posts: 4900
Joined: 2/9/2006
Status: offline 		Thanks everyone I will pass all the info along. Hopefully she can get this mess straightened out and get herself back on track.

~Lashra

(in reply to Level)
Profile   Post #: 16
RE: Sub with default student loans - 5/10/2006 8:43:14 PM   
Evanesce


Posts: 2325
Joined: 9/14/2005
Status: offline 		Oh... and tell her to cut up her credit cards. 

_____________________________

Denise

Give a slave what he truly needs, and he will do what you want.

"There's never a hero in a battle of ego." - Big & Rich


(in reply to Lashra)
Profile   Post #: 17
Page:   [1]
All Forums >> [Casual Banter] >> Off the Grid >> Sub with default student loans Page: [1]
Jump to:





New Messages No New Messages
Hot Topic w/ New Messages Hot Topic w/o New Messages
Locked w/ New Messages Locked w/o New Messages
 Post New Thread
 Reply to Message
 Post New Poll
 Submit Vote
 Delete My Own Post
 Delete My Own Thread
 Rate Posts




Collarchat.com © 2025
Terms of Service Privacy Policy Spam Policy

0.078