student loan in default

[Syracuse]

So I had a Perkins loan, I thought it was being deffered, I am bad with money I should have been on top of things. Anyway it's 5 k, and I called up the people and apparently now they sold it or something to Creditors Interchange, I googled this company and apparently they're shady as hell, now I am depressed that this is going to ruin my credit and these creditors are going to screw me over. Why did they have to sell my loan without giving me a phone call first or something? I guess they were sending me letters but I thought they were junk mail. I hate money matters it just makes me depressed.

[cache]

So did you default or was the loan just sold?

[wordsmith]

I've talked to a lot of people about this, but I don't understand how loans can be sold without your knowledge (but this may be because I have a federal, not private, loan).

Anyhow, have you made your loan payments? If you have, you haven't defaulted.

[AshleyJordan]

Call them, ASAP. We're not in a position to say whether or not your payments are current, but nothing will ruin your credit and financial future like not paying your student loans (your wages can even be withheld,) so you need to straigthen this out immediately.
Also, if they just sold the loan, that happens all the time and it's nothing to worry about.
Good luck

[Syracuse]

I know I called my my student loans perkins people and they just said call this company it is called creditors interchange, and hung up on me. I am trying to pay my student loans but I have so many of them that I can't keep them in track. And I was trying to get them consolidated with nelnet, and the guy there was real nice but he said I can't get this consolidated because it is in default and I didn't even know it was! And I guess it is hard to get a loan out of default, so now I am corned. I just want to ignore my loans and not think of them. I used to let my parents take care of my financial stuff, stupid I know, so this is new to me. I wish life could be simpler.

[MetFanL]

I know I called my my student loans perkins people and they just said call this company it is called creditors interchange, and hung up on me. I am trying to pay my student loans but I have so many of them that I can't keep them in track. And I was trying to get them consolidated with nelnet, and the guy there was real nice but he said I can't get this consolidated because it is in default and I didn't even know it was! And I guess it is hard to get a loan out of default, so now I am corned. I just want to ignore my loans and not think of them. I used to let my parents take care of my financial stuff, stupid I know, so this is new to me. I wish life could be simpler.
Consolidate as many of them as you can. Can you take out a little extra and write one big check to this other company? Then, you can just finish the nonsense w/ the collection people and just make ONE monthly payment for all your loans.

[AshleyJordan]

The worst thing you can possibly do is sit on this any longer. I would strongly suggest that you contact the company, and also a nonprofit credit counseling organization to help you. I understand this might be hard to face, but the implications of ignoring the debt are pretty grave. . . you could really screw yourself.

[wordsmith]

I just want to ignore my loans and not think of them.

No, no, no, no, no. Get this out of your head, unless you wanna seriously hamper your life pretty long-term. Honestly. Student loans are nothing to stick your head in the sand about, seriously. If all else in my life goes to shit, my student loans are the one thing that i would NOT ignore. It's pretty much the worst possible type of debt to have nonpayment problems with. Even if you were to declare bankruptcy, your student loans still don't go away.

[cache]

I wish life could be simpler.


No offense, but student loans aren't even in the top 10 of possible major life issues...

It's the band-aid theory - deal with the quick pain now, otherwise, you will be feeling it for a lot longer.

[wordsmith]

No offense, but student loans aren't even in the top 10 of possible major life issues...

No offense, but that's pretty much something that varies person to person.

My student loan is BY FAR my biggest financial obligation in life right now, and as such, is really a major factor in my life.

[Kitty]

You can always consolidate your loan.

[wordsmith]

Not if it's in default.

[Kitty]

You could take out a personal loan with a low interest rate and pay off the defaulted loan.

[AshleyJordan]

No offense, but student loans aren't even in the top 10 of possible major life issues...



I would say if your debt-income ratio is manageable and you're making the payments on time, your loans are probably not a big problem. . . but, more so than a lot of other financial obligations, if you default on your loans, you can be in really serious trouble. You're not even off the hook if you go bankrupt.

[pisces2473]

You could take out a personal loan with a low interest rate and pay off the defaulted loan.
Can you do that though? Isn't your credit in the crapper if you haven't been paying off student loans?

[Kitty]

Can you do that though? Isn't your credit in the crapper if you haven't been paying off student loans?

He should still be able to get one..but the interest will probably be higher. It is only 5k, though. So, he shouldn't have a problem.

I was reading online that they have to make a significant effort to contact you prior to defaulting your loan. I guess I don't feel too sorry for the OP - I mean, if you were just throwing out all their letters trying to contact you, that's pretty irresponsible. I guess you learned your lesson.

[Kitty]

Not if it's in default.

Actually, it looks like you can:

Failure to repay your defaulted student loan can be damaging to your credit record. In fact, consumer reporting agencies may continue to report an account for 7 years from the opening date. However, there are several things that you can do to at least partially, and in some cases, fully restore your credit record. Your options for bettering your credit report include: repay or satisfy the loan in full; consolidate your loan, or rehabilitate your loan through a loan rehabilitation program.

[cache]

No offense, but that's pretty much something that varies person to person.

My student loan is BY FAR my biggest financial obligation in life right now, and as such, is really a major factor in my life.


You're telling me that 50 years from now, when you look back on your life, managing student loan debt will be one of the 10 biggest obligations of your life?

[pisces2473]

You're telling me that 50 years from now, when you look back on your life, managing student loan debt will be one of the 10 biggest obligations of your life?
Dude, who are you to judge what's an issue to her?

[AshleyJordan]

Speaking for myself, I can say that my student loan debt has affected which jobs I've accepted, which neighborhoods I can afford to live in, and how much mortgage I can afford, among other things. So, although I don't regret borrowing to get my degrees, I can say that my loan debt has had serious implications.

[cache]

Dude, who are you to judge what's an issue to her?

That was a question...please don't judge my questions.

[pisces2473]

That was a question...please don't judge my questions.
Don't turn it back on me, buddy.

[beeblebrox]

Student loans are important to credit regardless. When I first started paying mine off, I didn't know that I had to because I thought that I still had a grace period, so that may have affected my credit back then before I even got a credit card.

It's my biggest payment next to my rent every month. I'll be thrilled when I don't have to pay it off and can put the money somewhere else. I'm hoping to get mine done with in 5 years and am about 2 years in a 10 year loan. Hopefully by next year this time, my interest rate will drop by one percent with consistent on time paying, so there are benefits to paying it down.

Also, your loan's not that big (the one you speak of) so once you figure out who to talk to and begin paying, it should go pretty quick. Never, never ignore student loans, they suck, but they paid for your education.

[wordsmith]

You're telling me that 50 years from now, when you look back on your life, managing student loan debt will be one of the 10 biggest obligations of your life?

No, if it's not paid for in 30, it's written off (other than the taxes on whatever's left). :rolleyes: So in 50 years, it won't matter.

[Syracuse]

No, if it's not paid for in 30, it's written off (other than the taxes on whatever's left). :rolleyes: So in 50 years, it won't matter.
Do you mean that if after 30 years I still owe a few thousand, at the 30 year point I don't have to pay anymore? I guess that makes sense because that's about when I retire anyway.

[AshleyJordan]

Do you mean that if after 30 years I still owe a few thousand, at the 30 year point I don't have to pay anymore? I guess that makes sense because that's about when I retire anyway.


No. Did you have exit counseling w/ your financial aid office when you graduated? She means it will be paid off in thirty years-- you will not get off the hook for the debt if you retire, student loan debt is probably the hardest debt to get forgiven.

[cache]

No, if it's not paid for in 30, it's written off (other than the taxes on whatever's left). :rolleyes: So in 50 years, it won't matter.

I meant in the bigger scheme of things. Like I consider my health, the success of a life long relationship, taking care of family, maintaining freindships, etc to be bigger obligations than student loan debt, even if that debt is significant.

[Kitty]

I meant in the bigger scheme of things. Like I consider my health, the success of a life long relationship, taking care of family, maintaining freindships, etc to be bigger obligations than student loan debt, even if that debt is significant.

I think she was being flippant with you.

[cache]

I think she was being flippant with you.

I know...but I was asking a serious quesiton to understand one's motivations a little better.

[Syracuse]

No. Did you have exit counseling w/ your financial aid office when you graduated? She means it will be paid off in thirty years-- you will not get off the hook for the debt if you retire, student loan debt is probably the hardest debt to get forgiven.
I still say college should be free.

[AshleyJordan]

I still say college should be free.

Well, it isn't, and it wasn't for you, and now your credit is going to be really fucked up . . . I'm not saying that you should agree with the system as it currently is, but you're in for a world of financial hurt if you don't get this straightened out, soon. Anyway, I'm sick of lecturing you on this. Speak to the loan people and to a credit counselor.

[Syracuse]

It just seems really unfair. They can't get blood out of a stone right? So why not just refuse to talk to them, eventually I'll die anyway, why not live my life with more money to spend each month? I mean I'm going to pay off my student loans, just maybe not this one which is with an evil creditor interchange corporation, and also Sallie Mae which is evil as well.

[MetFanL]

Are you serious, Syracuse? Really? I hate to be harsh, but grow the f up. You're an adult now -- act like one and take responsibility for your actions.

Yeah, you'll die eventually, but don't you want to do that w/o this nonsense hanging over your head? And, not in your parents house? Because, if you continue down this path, forget ever being able to buy a home of your own.

Stop being whiny and ridiculous and handle your business.

[AshleyJordan]

One final thing (because this thread is getting really ridiculous). Your lenders can talk to your employer and automatically keep a percentage of each paycheck, before you even see it (like with taxes or insurance,) if you don't pay. . . this isn't something you can just opt out of.

[hotdog36]

I agree. You have to pay off your student loan. Otherwise you will never have a house, a car, etc. Also, credit agencies can be use very sleazy tactics, such as telling your employer how much you're in debt, as well as hounding you and your family and friends about the loan, and basically making your life miserable until you pay it back. I've heard some horror stories about the terrible things collection agencies can do, and it's not just reducing your FICO score.

[AshleyJordan]

I've heard some horror stories about the terrible things collection agencies can do, and it's not just reducing your FICO score.
Really, like what? (Just curious.) And these terrible things are legal?

[Kitty]

It just seems really unfair. They can't get blood out of a stone right? So why not just refuse to talk to them, eventually I'll die anyway, why not live my life with more money to spend each month? I mean I'm going to pay off my student loans, just maybe not this one which is with an evil creditor interchange corporation, and also Sallie Mae which is evil as well.

Take responsibility for your actions. I honestly don't feel sorry for you for what happened. You were dumb enough not to open the letters they were sending you.

I hope you realize that not paying back the loan is going to seriously complicate your life.

[hotdog36]

Really, like what? (Just curious.) And these terrible things are legal?

I just did a google search for Creditors Interchange, and found a website where people are complaining about how shady this company is.

"This guy actually called my cell phone, got lucky enough to figure out my password, and CHANGED my outgoing message!! A little jingle that he SANG: I am a debtor, and I don't pay my bills, so if you're looking for money, forget it! I have recorded this onto a tape and am filing a complaint with the NY Attorney General today."

http://www.ripoffreport.com/reports/ripoff176742.htm

That's just one of the complaints people have about this company. So apparently it's probably not legal, but the only thing you can do is file a complaint.

[cache]

'cuse: How much total student loan debt do you have, if you don't mind me asking?

[solo_ar]

oh man hahahahah Syracuse you have no idea how Effed up your life is going to get.

I was in serious, serious debt problems with creditors. I managed to maintain my student loans...but I had some issues with Mastercard and Visa.

I moved home earlier this year because I just couldn`t afford to live on my own in Toronto anymore. I was in so much trouble that suicide seemed like a real option. Turns out moving home probably did save my life.

A few weeks later I went out to Wal Mart to pick up a shitty desk to put my computer on at my folks house...I went to pay debit and it was rejected. Called the bank, both of my bank accounts were frozen. I owed $4,000 immediately or else. I did not have the money, and would have to go to court, which would have almost doubled the amount I would owe. Thank god, I work for the bank and got the freeze removed and made a deal to start paying $100 a cheque out of my account until I got my xmas bonus, and could pay it off, which I just finished 2 weeks ago. Had I not been a bank employee, my life would be unbelieveably effed.

Eariler in the summer I got a phone call from a creditor..I had 24 hours to pay Visa $1500 or I would be taken to court...which would cost $6,000. Thank god my parents paid it, and I will pay them back, or again I would be seriously effed.

Now things are great, out of debt, and taking a holiday in Paris Feb 1st. But syracuse....this does not go away. Your life will be over if you don`t try and sort this out.

[Syracuse]

I owe 30 thousand I think. I've been trying to figure out how to pay them but they don't make it easy.

[cache]

I owe 30 thousand I think. I've been trying to figure out how to pay them but they don't make it easy.

It sounds like you should sit down, and put together a budget and stick to it. 30K might be a bit of debt, but you shouldn't let it dicate and control your life when you can be in charge of it instead, even if it means making sacrafices for awhile.

That, and...cut up your credit cards...



JMHO

[grneyedmustang]

In all seriousness, call them and see if you can work something out. Like others have said, not paying your student loans and "just ignoring it" can have dire consequences, like having 25% of your future paychecks being garnished.

Call them, ASAP. Don't ignore this. It will get 10 times worse if you don't, and will have more ramifications than just a bad FICO score.

[Syracuse]

Ok I'll call these bitches today. It's funny but the guy from creditors interchange was nice, a canadian guy saying aboot a lot, and he was all like hey man if they say it's 594 dollars and you thought it was 5 thousand, cheers bro.

[wordsmith]

I meant in the bigger scheme of things. Like I consider my health, the success of a life long relationship, taking care of family, maintaining freindships, etc to be bigger obligations than student loan debt, even if that debt is significant.

I was being flippant.

But to answer your question seriously, I don't really have those other concerns right now. I'm generally very healthy, and any issues I do have are mild and manageable in the grand scheme, I don't have a family other than the family I was born into, which happens to be one of my bigger assets rather than a source of stress, I don't stress about friendships, etc. debt, of which my student loan is by far the largest part, is truly my biggest worry by leaps and bounds. In fifty years, will my family be a bigger focal point? Sure, if I happen to have one. But that's not necessarily gonna happen, and isn't very likely.

[CTGirl]

I have $30K in loans from grad school too, and yeah, it blows, but you just gotta suck it up and pay em.

I had some confusions with Sallie Mae at first, with all the stuff they kept sending me, but then I just signed up for automatic deductions from my bank account, so now I dont have to think about it anymore, and I never miss a payment.

[wordsmith]

I also have had mine automatically deducted for the past five years. The first couple of years, I wrote monthly checks, but it's much more preferable to do it this way, I find.

[Syracuse]

I also have had mine automatically deducted for the past five years. The first couple of years, I wrote monthly checks, but it's much more preferable to do it this way, I find.
The thing I worry about with that is they start taking more money out of my account, more than I want them too. I don't want them to have access to my count, seems risky.

[wordsmith]

The thing I worry about with that is they start taking more money out of my account, more than I want them too. I don't want them to have access to my count, seems risky.

They can't legally change your repayment rate without informing you. Of course, if you don't open mail or take calls that inform you of this, it's all on you.

[pisces2473]

Of course, if you don't open mail or take calls that inform you of this, it's all on you.
Hahaha, ZING!

[wordsmith]

Seriously, though...I've had mail I presumed was junk that wasn't. He needs to get in the habit of opening anything that appears to be financially-related that's not from credit card companies he doesn't have accounts with.

[Syracuse]

Seriously, though...I've had mail I presumed was junk that wasn't. He needs to get in the habit of opening anything that appears to be financially-related that's not from credit card companies he doesn't have accounts with.
I need a girl friend to take care of financial stuff for me. You girls love doing stuff like that.

[MetFanL]

I need a girl friend to take care of financial stuff for me. You girls love doing stuff like that.
yeah... no we don't. I just had the guy I've been seeing fix my 401K. On our 2nd date he was all about fixing my finances.

I love it when guys take care of things for me.

[Syracuse]

yeah... no we don't. I just had the guy I've been seeing fix my 401K. On our 2nd date he was all about fixing my finances.

I love it when guys take care of things for me.
Ok yeah I mean I need an SO to help me with things, really guys and girls can be good at things like this, or bad like me.

[wordsmith]

I need a girl friend to take care of financial stuff for me. You girls love doing stuff like that.

Hah. You'd be sorely disappointed if you expected that generalization to come true with me. I LOATHE all things relating to finance.

I also can't imagine having a S.O. go through my personal stuff.

[Kitty]

I need a girl friend to take care of financial stuff for me. You girls love doing stuff like that.

Yeah, good luck with that.

[cache]

I need a girl friend to take care of financial stuff for me. You girls love doing stuff like that.


"Hi, I'm Syracuse, how's it going?"
"Good, how are you?"
"Good. Hey, you want to do something this weekend?"
"Sure. What did you have in mind?"
"I don't know, maybe you could come over and balance my checkbook for me?"

[Syracuse]

"Hi, I'm Syracuse, how's it going?"
"Good, how are you?"
"Good. Hey, you want to do something this weekend?"
"Sure. What did you have in mind?"
"I don't know, maybe you could come over and balance my checkbook for me?"
Wait you're a guy right?

[cache]

Wait you're a guy right?


Hey...I'm a dude...don't be callin me no "guy."

[AshleyJordan]

"Hi, I'm Syracuse, how's it going?"
"Good, how are you?"
"Good. Hey, you want to do something this weekend?"
"Sure. What did you have in mind?"
"I don't know, maybe you could come over and balance my checkbook for me?"

LOL. What women wouldn't be swept off her feet by that?

[asm198]

If you go into default, this is what will happen. First, you'll have them calling and sending lots of brightly colored letters. Then, when you check your credit report, you will have 2 notations for every loan, if you haven't already consolidated them. So, if you took out a loan for every semester of school and you went for 4 years, you'll have 16 negative notations on your credit score.

They will keep calling for awhile and then they will give up. The letters will eventually stop and you'll forget about it for a bit. Right up until you file your taxes and get a nice letter from the IRS, rather than a check, saying they are taking your return and giving it to the student loan people.

Then you start getting letters from neither the original lendor or the current person holding your loans, but a nasty, regular collection agency, demanding all the money, plus the interests and their own service fees and interest.

So, you can either read their letters or call them up to find out what is going on OR you can deal with all of that crap. It's not fun.

[Syracuse]

Ok I tried getting through to this collections agency, I am going to give them 648 dollars just to get this over with. My main objective was to make sure this was legit and not a scam, that my loan was really in default and no one was lying to me. From this thread and talking to peeps on the phone I think just giving them this money is the best option at this point. Then my next step will be to get everything consolidated. I will call the agency tomorrow (person to talk to is gone home now).

[asm198]

You can always go here to double check to see who actually has your loans.

http://www.nslds.ed.gov/nslds_SA/

[Syracuse]

You can always go here to double check to see who actually has your loans.

http://www.nslds.ed.gov/nslds_SA/
That asks for a PIN number, but doesn't say where to get it?

[dacrunkest]

I still say college should be free.

of course! and so should healthcare and airline flights and tickets to Vikings games! In fact, maybe we could just throw out all of the money because after all, we can just base our economy off of generosity units. grow up man and own your debt...you borrowed it, you have to pay it back.