Asked over 2 years ago - Lawrenceville, GA
FlagSallie Mae student acct turned over to collection agency, defaulted. Informed collection agency I was unemployed, please accept temporary $20 monthly payment or place in deferment to keep credit positive to help getting a job, and may consider school again. Was told no such plans, Sallie Mae does not allow it, will not get government assistance. Sallie Mae said they have no control over agency, up to them. The agency said 9 monthly payment of $90 will take my account out of default then returns to Sallie Mae, can then place in deferment. He accepts $20, will continue reporting negative due to not paying payments of $90. I should have done deferment sooner with Sallie Mae, my fault. Wrote, all agreed to small temporary payments except this collection agency. Please help, thank you.
Collection agents are very nasty and aggressive because they are usually not attorneys. The only way they get money is if you pay. If you do not they have to send the file to an attorney and then they do not get a commission. Whatever you do with a colleciton agency, make sure they are authorized to collect the debt, get something in writing. Then whatever arrangements you make must include the total amount due, when the payments are due, where they are sent and how they are applied. Make sure they are not adding all sorts of fees etc that you do not owe. I am very wary with collection agents. Do not do anyting verbally, everything must be in writing.
It is unclear what kind of help you are requesting. Sallie Mae collects on student loans and many of the collection policies are very agressive. You have to expect negative repercussions on your credit report when you are delinquent on repaying debt. A creditor isn't your Mom & won't be interested in any excuses!
When you signed the student loan paperwork, you agreed to certain payment terms. No creditor, not a car loan, a credit card, a private lender, or a student loan, is required to offer you better payment terms once you sign the the loan paperwork.
If the amount of the student loan is substantial, say over $20K, there are some techniques available that will let you adjust your payment amount.
Hope this perspective helps!
Sorry, perhaps I was not clear. I live in GA. I am not making excuses for not paying them. In the contrary, when becoming unemployed, I wrote to all my creditors about my situation and requested temporary monthly payments of $10, which ALL have agreed except this collection agency that now has my student loan. I placed my Direct Loan (student loan) in unemployment deferment. I was told, make 9 consecutive payments of $90 and it comes off default, then its sent back to Sallie Mae, then request deferment. Unfortunately, $20 is all I can afford at this time. I will not live in the streets just to make this collection agency happy. Do you know if true, that Sallie Maes sends this to collection if in default, then they take an x amount of payments then turns it back to Sallie Mae, then can request deferment? Any suggestions as to what to do or say? Appreciate your help.
Don't speak legalese? We define thousands of terms in plain English.
Browse our legal dictionary