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What are your rights in dealing with collection agencies for a defaulted student loan?

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2009-07-04 12:39:23
2009-07-04 12:39:23

Your rights are extremely limited. If you have a specific question, please repost.

The previous person who said that cannot collect after 3 years was completely incorrect; federal student loans have no statute of limitations whatsoever, and ED is still collecting on loans from the 1960s. Collectors of defaulted federal student loans will not negotiate, collectors of private student loans will negotiate.

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In the US, if the student loan is Federally Guaranteed then the answer is no. The Dept of Ed. and it's collection agencies will not negotiate or settle a debt. If the student loans are private, then the answer is yes. If you need help with your defaulted student loans, the company listed at the bottom of this text box can help you.

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In the US, only if you rehabilitate or consolidate the defaulted loans. To rehabilitate, you need to make 9-12 ontime payments to your current lender. If you need help with the consolidation of your defaulted student loans, I recommend www.defaultms.com

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Yes, if you paid off a Defaulted student loan and don't have any other defaulted student loans, then you are eligible to get new Federally Guaranteed student loans.

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In the US, yes you are eligible for additional student loans if you rehabilitate, bring current, or consolidate your defaulted federal loans. If you need help with the consolidation of your defaulted loans, click the link below.

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Yes! If your student loans are with a collection agency they are in default. When student loans are in default the dept. of ed gives the collection agencies "CARTE BLANCHE" to collect the money by any means necessary. Wage garnishnent is only one.

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In the US, a defaulted student loan is turned over from the Guarantee agency to a Federally approved collection agency. This collection agency can garnish your wages. If your loans are with various lenders and turned over to multiple collection agencies after default, then I think it would be possible to have multiple garnishments, but collectively they can not be more than 15% of your salary. If more than 15% is being taken, then you should contact the Ombudsmans office at the Dept of Education. He is there to help you. If you want help consolidating your defaulted loans and stopping the garnishment, click on the link at the bottom of this text box.

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Harvard Student Agencies was created in 1957.

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Most likely no. A defaulted Federal student loan is as bad as an IRS lien.If you need help with your defaulted student loans, contact Default Management Services. You can get their phone # from Google. Ask for Doug

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In the US, the government can garnish up to 15% of your wages for defaulted federally guaranteed student loans. You can get out of default by rehabilitating your loans in 12 months, or by consolidating your loans. If you need help with the consolidation of defaulted student loans, click on the link below.

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In the US, you can only get a new student loan if you rehabilitate or consolidate the defaulted loans. To rehabilitate, you need to make 9-12 on time payments to your current lender. If you need help with the consolidation of your defaulted student loans, click on the link below

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No, but some federal benefits (like Social Security) can be offset to satisfy defaulted student loans. Some borrowers who have not yet defaulted also qualify for a deferment of their student loan payments while receiving public assistance.

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You should consolidate your defaulted student loans and stop the wage garnishment. You can get an income-based repayment plan and pay as little as $0 a month, defending on your income and dependants. If you want help with the consolidation of your defaulted student loans, click on the link below


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