STUDENT LOAN debt. What if they send me to court? I don’t know what to do HELP?

I am full time in school right now and I honestly don’t know how i’d be able to keep a job and work enough to pay off this debt. It is from my previous university.
I spoke to the man and he told me I would have to pay 25% as a down payment and then make payments. I cannot pay the 25%. He seemed really understanding and not agressive at all … so I have been making payments (directly back through my school) but have not paid the 25% down payment off. They have called me a total of 3 times
I am so scared- that this will go to court or something. I have no idea what to do.

Is the debt collector collecting the debt for the school or has the school sold the debt to the third party debt collector?

If you are making the payments to the school directly, then they most likely still own the debt. You can find out who owns the debt by looking at any letters that have been mailed to you by the debt collector. On the letter it will say the Clients name and account number.

If the school still owns the debt the FIRE the debt collector. This is a link to a sample letter that you can adapt to meet your needs. Once they receive this letter certified mail, then you no longer have to deal with them. http://www.bendover.com/cdletter.asp

Contact the schools accounting department, and set up a payment arrangement direct with them that you can afford to pay, and stick with it.

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This entry was posted on Monday, March 8th, 2010 at 6:33 am and is filed under debt help. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

7 Responses to “STUDENT LOAN debt. What if they send me to court? I don’t know what to do HELP?”

A Corona of my Owna Says:
March 8th, 2010 at 11:45 am
if you don’t have it, you don’t have it. what can they do..all they can do is garnish some of your wages…
References :
Michael M Says:
March 8th, 2010 at 11:55 am
When you are in school they have a program called an in school deferrment. YOu do not have to pay until you graduate or quit. Why did the man not mention that to you. You shuld call back and ask for a supervisor. I am very familiar with this process.
References :
Cole C Says:
March 8th, 2010 at 12:00 pm
They most likely will not take you to court. Since this is a student loan you are still in school and are making payments it would not be in there best interest to take you to court. They usually take you to court when after a long period of time without any payments made. When they call I would talk to them the worst thing you can do is ignore them. this might give them reason to believe you’re trying to avoid them all together and not pay your debts. the more compliant the more they are able to work with you.
References :
nw_curt Says:
March 8th, 2010 at 12:13 pm
I have a lot of experience with similar types of issues. If they are accepting your payments, and they take you to court, the judge will seriously frown on their behavior. I wouldn’t worry about it if I were you.

One thing you didn’t make clear, is whether you are being contacted by the original lender, or a bill collector. If it’s any type of a bill collector, you don’t have to deal with them. Send them a certified letter telling them to stop contacting you. Make reference to the Fair Debt Collection Practices Act in your letter so they understand you know about the law.
References :
http://secretsofthecreditindustry.com
http://blackbookofcreditrepair.com
Dixie Darlin' Says:
March 8th, 2010 at 12:40 pm
Is the debt collector collecting the debt for the school or has the school sold the debt to the third party debt collector?

If you are making the payments to the school directly, then they most likely still own the debt. You can find out who owns the debt by looking at any letters that have been mailed to you by the debt collector. On the letter it will say the Clients name and account number.

If the school still owns the debt the FIRE the debt collector. This is a link to a sample letter that you can adapt to meet your needs. Once they receive this letter certified mail, then you no longer have to deal with them. http://www.bendover.com/cdletter.asp

Contact the schools accounting department, and set up a payment arrangement direct with them that you can afford to pay, and stick with it.
References :
CatDad Says:
March 8th, 2010 at 1:29 pm
Ask them for forbearance being that you’re going to another school full time.

Student loan debt collectors don’t have to take you to court…..they have direct power to garnish wages @ 15%. Of course if you’re not working this isn’t going to do them any good. Honestly, if you’re not working and you don’t have any money, then there really isn’t anything they can do to you.
References :
Mo Says:
March 8th, 2010 at 2:12 pm
Student loan debt collectors cannot garnish your wages without a court order. You are paying something, so I doubt the likelihood of a judge signing such an order is likely. (except in the case of Federal loans.)

Also, while I do agree with the "bendover" letter, YOU cannot fire a collection agency. They may have been "assigned" the debt, but the only way to be sure is write to the original creditor/whomever is handling the school account & ask if that company has any legal authority to handle this debt.

From now on, be sure to keep all receipts of payment & correspondence together. Forever! Send your payments from your checking account. Keep a ledger of all payments, how much, what date, check # etc.

Also, any letters you send, keep copies & send them CMRRR (certified mail-return receipt requested) And keep all those USPS receipts & green cards with the other stuff.

**NEVER talk to a collection agency over the phone & never physically sign any letter to them. Type your name only!!!
References :
myFICO.com

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