Student loan now due after 27 years?
I have a student loan from 27 years ago that I am now being asked to pay( $6500.00 with interest and penalities). I found out that there is no statue of limitations on govt sponsered student loans. I’ve been contacted by a collection agency that says they work on behalf of the US Department of Education. They sent me a letter that says they are going to garnish my wages unless I can claim hardship.
My question is: is it safe to fill out the financial statement they have enclosed. I have a small line of credit from a credit union can they touch that. I also have a condo can they touch that. My problem is I am a salesman and times are tough. I am living paycheck to paycheck and barely can pay my bills. Do I have any thing in my favor at this time. One last question: any advice on how to handle the debt collector. The attitude I have encountered so far is I am God and you will do as I say. Do I have any rights at all.
Thanks in advance for any help
Rick
Lots of people have got caught on old student loans they failed to pay. Uncle Sam never forgets. One day he shows up wanting the money plus interest. Normally they keep all tax return money to satisfy the debt., take your savings and checking accounts, and file liens on any real property you own and get their money when it sells. I am surprised they didn’t do that in your case.
Are you sure these guys are legitimate? I have never heard of the U.S. Government using private collection agencies. The IRS is the collection agency used by Uncle Sam.
Some states have telephone harassment statutes that forbid collection agencies or agents contacting you after you tell them not to contact you anymore.
At that point, they are required to go to court, get the judgment, and start filing liens against your possessions and garnish your wages without contacting you, other than in writing giving court dates and the such.
I suggest you tell them your situation and say you will pay what you can when you can. They can’t get blood out of a turnip if the turnip doesn’t have blood. They can take your condo if they want.
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This entry was posted on Wednesday, May 27th, 2009 at 7:27 pm and is filed under us department of education student loans. Follow the comments through the RSS 2.0 feed. You can post a comment, or leave a trackback.
THATS GOING TO BE A LOT OF INTEREST AND PENALITIES. GONNA BE A LOOOONG TIME BEFORE YOU SEE A TAN REFUND.
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August 23rd, 2009 at 1:56 am
i think if you dont pay there going keep senting u letters etc
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August 23rd, 2009 at 2:06 am
Lots of people have got caught on old student loans they failed to pay. Uncle Sam never forgets. One day he shows up wanting the money plus interest. Normally they keep all tax return money to satisfy the debt., take your savings and checking accounts, and file liens on any real property you own and get their money when it sells. I am surprised they didn’t do that in your case.
Are you sure these guys are legitimate? I have never heard of the U.S. Government using private collection agencies. The IRS is the collection agency used by Uncle Sam.
Some states have telephone harassment statutes that forbid collection agencies or agents contacting you after you tell them not to contact you anymore.
At that point, they are required to go to court, get the judgment, and start filing liens against your possessions and garnish your wages without contacting you, other than in writing giving court dates and the such.
I suggest you tell them your situation and say you will pay what you can when you can. They can’t get blood out of a turnip if the turnip doesn’t have blood. They can take your condo if they want.
References :
August 23rd, 2009 at 2:33 am
why didn’t you pay it off yet you didn’t think loans actually run out of time do you? NO loans run out of time, they just get bigger and bigger with interest. If you owe them more than half the value of your condo they can in fact take the whole thing right away from you. If you owe them less than half they can walk in and take your possessions. this doesn’t mean they will take your $400 tv and then you owe them $400 less it means they will take your $400 tv and auction it for $100 and you only owe $100 less. you never want to get in the situation where they are repossessing your stuff, because they auction it off way below the value so they get their money fast.
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August 23rd, 2009 at 3:03 am
There is no statute of limitations on student loans. Congress eliminated the statute of limitations — and made the law retroactive! — quite a few years ago, IIRC, back around 1993(?). They can attach any bank or investment account, put a lien on your house, garnish wages, attach any sort of assets (take your car, etc), take your Social Security retirement or disability, confiscate income tax refunds, or do anything else to get the money out of you. If they garnish wages, they typically can take 1/4 of the gross. If you cannot keep a roof overhead on what’s left, tough.
Worst, these vultures are coming back against people who paid the loans off (or who had their default expired under the statute of limitations) many, many years ago. People who thought their student loans were long handled, and who no longer have the paperwork, are now getting hit for student loans with interest and penalties amounting to 20 times or more what they ever borrowed and repaid. Because the statute of limitations was eliminated retroactively, people could get scr’d for decades to come. You have no rights, no protections, no nothing.
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August 23rd, 2009 at 3:51 am