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Old 01-06-2012, 08:08 PM
 
1 posts, read 7,785 times
Reputation: 10

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I defaulted on my loan to American Education Services. I recieved a gift of 4k from my grandparents in which to make the default up and catch up on payments.

When I called A.E.S I found out to of my loans about been paid off by United Guaranty Corporation who in turned moved them over to DCS.

I contacted DCS and they told me they my balance was 25k and they would take a pay off of 16.5 or 12.5 down and 290.00 per month. Neither of these options are available. If I was unable to make the 200.00 payments until recently how in the world would i be able to pay 290.00

I told Cindy at DCS that I had 4k I could give them. She said they would take the 4k and take 263.00 a month. I dont have that kind of cash. My plan was to pay the 1200.00 or so late fee payments to A.E.S and use the rest to forward pay.

This occured Thursday. She said I will need to make a decision on Monday or my loan will be turned back over to United Guaranty Corp.


I do not know what to do? Can anyone provide some advise?
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Old 01-06-2012, 08:21 PM
 
3,528 posts, read 5,844,771 times
Reputation: 4637
Quote:
Originally Posted by merrkat View Post
I defaulted on my loan to American Education Services. I recieved a gift of 4k from my grandparents in which to make the default up and catch up on payments.

When I called A.E.S I found out to of my loans about been paid off by United Guaranty Corporation who in turned moved them over to DCS.

I contacted DCS and they told me they my balance was 25k and they would take a pay off of 16.5 or 12.5 down and 290.00 per month. Neither of these options are available. If I was unable to make the 200.00 payments until recently how in the world would i be able to pay 290.00

I told Cindy at DCS that I had 4k I could give them. She said they would take the 4k and take 263.00 a month. I dont have that kind of cash. My plan was to pay the 1200.00 or so late fee payments to A.E.S and use the rest to forward pay.

This occured Thursday. She said I will need to make a decision on Monday or my loan will be turned back over to United Guaranty Corp.


I do not know what to do? Can anyone provide some advise?
What ever you do - never EVER agree to give money until you have seen an agreement in writing. You must have defaulted a while ago if it was turned over and paid off already.

Once in default you are no longer dealing with the original agreement - thats now gone with your default. You are in collection and there is nothing you can do about that. They will try and pressure you into a deal that may not be in your best interest. Remember you are now dealing with a debt collection company -NOT with the loan originator. Try and work it out but agree to NOTHING without it being in writing. Definately DO NOT give any financial information to them without it.

So you know who you are dealing with - here is a link of what happens when it isn't in writing.

http://www.debtconsolidationcare.com...read77106.html
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Old 01-18-2012, 03:21 PM
 
1 posts, read 7,692 times
Reputation: 11
My loan is in collections @ DCS. They want me to take out a loan for 16K, which I cannot bc this loan negatively affected my credit. And then make monthly payments of $509; seriously? If I could afford to do that, I wouldn't be in this situation. What upsets me most is when I asked her what "actions" they plan to take if I couldn't pay per their arrangements, she wouldn't say. But then, later on in our conversation the following day, she mentioned something about did I wanna lose my home bc I didn't pay my student loan....really? When I asked her if she meant that I would be put out of my bc I didn't pay back this loan, she became silent. So, I asked her again and again, she said nothing. My dad cosigned on this loan; he is 68 and on social security; hearing that he may lose his home on account of a student loan was not good emotionally for this old man. I couldn't get a word in edgewise and she wasn't willing to negotiate a payment arrangement that I could make comfortably. What can I do????
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Old 01-18-2012, 06:28 PM
 
157 posts, read 258,758 times
Reputation: 78
Contact your congressman, too. Student loans, most signed by young 18 year olds, can't go to bankruptcy and my brother's former company owner can, not once but several times? How is that right? It's lack of political clout, since most with loans are too poor to donate to them.
Good luck to you. Have you tried consumer credit counseling or similar agency that helps people work out payment/debt problems.
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Old 01-18-2012, 06:59 PM
 
Location: Southern California
3,116 posts, read 4,075,934 times
Reputation: 3503
Quote:
Originally Posted by chaunceysmom View Post
My dad cosigned on this loan; he is 68 and on social security; hearing that he may lose his home on account of a student loan was not good emotionally for this old man.
Your father never should have cosigned on that loan. Big mistake on his part. Co-signing means that he's willing to make the payments if you can't - so it's not to be entered into lightly. Especially since that kind of loan can't be discharged in bankruptcy, and they can go after social security. HUGE mistake on his part to cosign on that loan.

As for you, if you can't get a word in edgewise while talking to the loan rep, then stop talking. Ask them to mail you the information, and then do research on the web - Google anything you don't understand.

They want your money - so you will be able to find a way to work with them - even if you can't afford the full $509 a month, they're currently requesting. But you need to do the research and find out how to make it happen. Don't expect the loan company to come up with a solution that fits your life and budget perfectly.


And to anyone else reading this thread. DO NOT ask your parents to cosign on a private loan for school. If you can't afford the school you want without private loans, then take a semester off and work. There are far too many stories of parents who cosigned on a private loan, so that their child could go to their dream school - and then the child defaults - and the parent is totally unaware that the loan will follow them forever. It can't be discharged in bankruptcy, and huge shocker - they can actually garnish social security! There's no way out - they will get their money.
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Old 01-18-2012, 07:02 PM
 
Location: Southern California
3,116 posts, read 4,075,934 times
Reputation: 3503
Quote:
Originally Posted by chaunceysmom View Post
she mentioned something about did I wanna lose my home bc I didn't pay my student loan....really? When I asked her if she meant that I would be put out of my bc I didn't pay back this loan, she became silent.
They can't actually take your home, but they can garnish your wages - and if that means you can't pay your rent or mortgage, then you might lose your home. So she wasn't exactly lying, but she was stretching things a little...
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Old 02-10-2012, 11:32 PM
 
318 posts, read 414,374 times
Reputation: 300
I couldn't follow everything because I'm not sure what DCS or United Guaranty are. My comments below are assuming you have a student loan debt from a federal agency, like HHS or DOE.

Generally in your situation, get an agreement in writing that the $4k will go the loan with the highest interest rate. Ask, but don't expect, that all the money will go to the principal.

Keep a copy of every single payment made, including the date and amount. DOE and HHS are notorious for calculating interest incorrectly, so make sure they provide you with documentation on how the interest is calculated. Unfortunately, HHS and DOE student loan debts compound interest annually, which vastly increases the amount of interest you must pay. So, the sooner it's paid, the better.

If your records conflict with the lender (AES?) and agency's, ask for them to provide you with an itemized statement showing all your payment amounts, payment dates, interest rates, interest accruing, and balances. If they refuse, then write your federal senator or congressperson seeking their help in getting the accounting you're entitled to and ensure the payment record is accurate. I promise a federal agency like HHS, DOE and DOJ will respond to a letter from a congressperson seeking intervention on your behalf. Don't abuse this tactic, though, or the congressperson will stop being helpful.

Pay what you can, and pay something every month. Even if it's only $50. That shows good faith. If the private collection agency realizes it can't get anymore from you, it will eventually return your file to the lender. However, it may take months before the collection agency gives up.

Screen your phone calls and/or tell the collection agency to stop contacting you. The harassment only adds to your stress level.

Student loan debt cannot be wiped out in bankruptcy. Before your or you dad's accounts, wages, or social security can be garnished, the lender must first get a court judgment against you. Make sure the lender has your current address because you want to know when you get sued and what the judgment shows as the principal, interest, interest rate and balance you owe. If you can't be found to be served with the legal papers, a default judgment will be entered against you, so hiding from the process server is not a good idea.

The judgment interest rate will be different than your loan rate because judgment interest rates are set by federal law, depending on the date the judgment is entered.

I don't know what state you live in, but most state laws don't allow a person's homestead to be seized to pay a student loan judgment. That's a pretty drastic measure, and seldom is authorized by the lender because it doesn't want your home. It wants your money.

Show much appreciation to your grandparents for the $4k and Dad for co-signing. Pay back your grandparents when you can, even if they don't require it. It's the mature and grateful thing to do.
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Old 11-10-2012, 08:31 AM
 
1 posts, read 5,684 times
Reputation: 10
My son and daughter-n law owe close to $80,000 in student loans and are in default. I'm wanting to give them a house, mortgage free, but was wondering if I put the house in their name, can the lender/government attach a lien or even take this house?
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Old 11-10-2012, 06:57 PM
 
43,177 posts, read 47,049,205 times
Reputation: 13668
Quote:
Originally Posted by equinox1 View Post
Contact your congressman, too. Student loans, most signed by young 18 year olds, can't go to bankruptcy and my brother's former company owner can, not once but several times? How is that right? It's lack of political clout, since most with loans are too poor to donate to them.
Good luck to you. Have you tried consumer credit counseling or similar agency that helps people work out payment/debt problems.
Its because of the nature of the loan. Otherwsie with nothg to backup the loan and the pre cenatge ;no oe would loan student the moaney i the first palce. they put this proviso to asure the lenders of greater likelyhood of collecting form a peros with no assets or usually no credit at all.If you disagree then loan someone 25K to 100K who is 18 and starting college.
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Old 11-11-2012, 07:00 AM
 
2,764 posts, read 2,388,762 times
Reputation: 2400
Quote:
Originally Posted by chaunceysmom View Post
My loan is in collections @ DCS. They want me to take out a loan for 16K, which I cannot bc this loan negatively affected my credit. And then make monthly payments of $509; seriously? If I could afford to do that, I wouldn't be in this situation. What upsets me most is when I asked her what "actions" they plan to take if I couldn't pay per their arrangements, she wouldn't say. But then, later on in our conversation the following day, she mentioned something about did I wanna lose my home bc I didn't pay my student loan....really? When I asked her if she meant that I would be put out of my bc I didn't pay back this loan, she became silent. So, I asked her again and again, she said nothing. My dad cosigned on this loan; he is 68 and on social security; hearing that he may lose his home on account of a student loan was not good emotionally for this old man. I couldn't get a word in edgewise and she wasn't willing to negotiate a payment arrangement that I could make comfortably. What can I do????
If a creditor threatens you with actions they cannot legally take, they are violating the law. You can sue them. Find out if you can legally record these calls.
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