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Student loan debt defaulted and loan bought by ConServe. been paying however the debt does not appear on credit report

Newtown, CT |

Had a Student load for around $10,000.00 and defaulted on it. Recieved a call from a Debt collection agency "ConServe" they informed me that my debt was "purchased by them and that I needed to start making payments to them. I am not aware of the interest rate or anything like that I get a bill from them every month for $200.00. and I pay it. I recently ran my credit and noticed that the orginal student loan shows up as being paid off. but there is no new entry for the "purchased" loan from Conserve even though the debt was purshased over 1 year ago. I did some research on the company conserve and there are lots of complaints against them. Does this sound like a scam? Should i continue to pay this company? Thanks. Brian

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Attorney answers 4


Based on the facts recited, it appears your loan was not paid off, but was bought by someone. Whether the purchaser was Conserve or another company apparently doesn't show up on your credit report. Nevertheless, you owe money to someone.

Contact the former owner of the loan and see if you can learn who the loan was sold to.
You can ask conserve for an assignment document, but I doubt you will receive anything.

Finally, I know of no law that requires Conserve to report to any credit reporting agency.


When a loan/note/debt is sold to another company, usually it will read that the debt was "charged off." You can request debt validation from "ConServe" to see if they have the proper account information and authority to collect the debt.

Advice on this forum is for informational purposes only and should never be mistaken as a substitute for legal advice. If you are in need of legal advice, you should consult local legal counsel.


Confirm with the student loan company that the debt was sold to this collection agency and request confirmation from the agency, as well.

Don't just go by information in your credit report. That can literally change overnight with a single report from the collection agency.



Student loans in bankruptcy are very difficult, if not impossible, to discharge. As a 'practical matter', student loans almost impossible to discharge in bankruptcy at least before Judge Dabrowski which is the Hartford jurisdiction. I know of no case brought before Judge Dabrowski where he ruled the student loan was dischargeable. The standards for discharge are so difficult that if you used their procedures outside of bankruptcy, namely, obtaining a doctor's agreement that you are disablbed, then and only then do you stand a chance of discharging the debt but it wouldn't be through the bankruptcy court; it will be outside of the bankruptcy court's district,usually.
Now I don't handled student loans but there's one attorney in Connecticut who has devoted his practice to student loans and that Attorney is Joshua Cohen. You can find him under and he's in Rocky Hill, CT . I would advise you to ask him about your issues. You can reach him at 877-589-5270. See what he has to say about your facts and your case. Good luck.

Dave Falvey

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