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Hi -- can you guys help me get some info?

Background

Back in 2001 I asked for a deferment on my Student Loans, which was granted but not for as long as I thought. I've just discovered that in fact that I've been in default for 2 years!!

I only found out when my Aunt got a call from someone...she emailed me their telephone number which I rang. I spoke to a guy who said he was the Dept of Education (I later found out that he worked for GC Services). He told me I was in default and either had to pay the full amount there & then or go on the Rehabilitation Program. Where I make a down payment of $200 and then make 12 monthly payments of $160.

The trouble is I've been out of work since October. I have no income, no savings or assets. I don't even have a credit card or a bank account.....I live with my boyfriend who has been supporting me while I look for work. The guy said he'd ring back and that I'd have to get a bank account. However, when I rang the Dept of Ed to get more info...they said that I'd never spoken to them...but to GC Services!?!

Later another guy from GC Services rang. He told me that when I begin making payments "fee's" will be added to the balance of my loan. But he could not tell me the amount of the fees. I need to know what that amount is -- I've heard horror stories of 18% being tacked on to the total. Also he said he could not send me written details of this Rehabilitation Program just a paper to sign saying yes i want this....what am I getting myself into??

I don't want to pay a collection agency. What I really want is deferment on my loans until I get another job.

My Questions :

1) Who is better to pay DoE or GC Services?

2) I haven't committed to anything (with GC) can you switch back to DoE? (for them to deal with loan).

3) Are they (DoE or GC Services) not required to give written details of the payment schemes and their effects, before you commit to them?

4) What other options are available to me?

6) Are there any independent organisations that can give me advice on student loans?

7) If I file for bankruptcy, will this cover Student Loans?

8) Currently I am unemployed, without assets or savings (I'm supported by fiancée) can this not be taken in account? (i.e. is not further "hardship" deferment possible?)

9) As I cannot pay what kind legal action can the DoE or GC services take against me?
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No. of Recommendations: 3
My advice is to talk to the Dept. of Ed.

They are wonderful! You should be able to work out a repayment plan that will get you off the hook.

No, bankruptcies do not cover student loans. My daughter still pays on them and she filed BK nearly 9 years ago.

After you speak to DEPT. of ED let us know how it went.

We will be happy to advise from there.

It is always better to deal with the creditor directly instead of the collection agency.

You will be able to negotiate a better deal.

d.
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Hi Dtschet

It is always better to deal with the creditor directly instead of the collection agency.

When I phoned the Dep of Ed. They just past me straight on to the Debt Collection agency: GS Services.

How do I get the DoE to deal with me direct?

I've downloaded these forms (I got them from another thread)http://www.ed.gov/offices/OSFAP/DCS/forms/fs.pic.pdf which I'll fill in in send. But now I'm faced with another problem.

How do I prove that I'm broke?? It asks for bank details (I haven't had a bank account for the best part of a year) and it asks for details of my monthly expenses....well my boyfriend pays the rent and all bills...he even pay's my medical insurance.

I've not claimed welfare or anything because I'm not living in the US but in Germany. I can't claim their Social Security because I hadn't worked here long enough before getting laid off (the Company I worked for went bust).

V.
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No. of Recommendations: 1
Hi Vitalius,

I'm concerned about this statement:

"Also he said he could not send me written details of this Rehabilitation Program just a paper to sign saying yes i want this..."

I would not agree to anything that is not in writing. Collection agencies are allowed to say anything to get you to commit. Always, always, get it in writing.

Which brings me to my next point: Write, don't call, the DOE. Explain everything to them, spare no details about dates of when you applied for deferment, what your employment history has been, etc. Then ask them how to go about straightening this out without using the collections service. In most cases, they will point you to repayment options to help with your current situation.

Final point: keep up searching for a job. If you are making any kind of income, then you will at least have an idea of how much you can afford to pay back.

LWW
now paying back student loans that were deferred for 5 years.
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No. of Recommendations: 1
Hello again!

Sorry, I did not check this board before now.

My son was in arrears and was contacted by the collection agency - he called Dept. of Ed and asked for a supervisor. He was advised to send his OVERDUE amount to them directly and they credited the amount and * POOF * they took him out of collections.

Money sent to DEPT of ED will be applied to your balance and credited properly.

The collection agency works for THEM.

Just send in the money.

D.
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