Dear Student Loan Debtors:

You need to educate yourself about the laws of student loan collections before making the decision to just avoid the calls and hope it will go away.

Here are a few points you will hear when talking to a contracted company of the Dept of Education regarding your student loans:

Administrative Wage Garnishment provisions provide for the garnishment of your wages, directly from your employer, without going to court and without your permission.

Also, in the event of non-payment, the Department of Education may decide it is necessary to forward your account to the U.S. Department of Justice to file a civil lawsuit against you.

They've passed a law to extend indefintely the statute of limitations on defaulted student loans, which essentially means you will owe this forever.

Department of Education can add up to 24% in collection fees of your principal and interest.

And, they've implemented a program to sieze all Federal Tax Refunds and may seize State Tax Refunds in the near future as well.

This is not consumer debt, so the leverage collection agencies have for these student loans is ligitimate. BUT ... there are ways you can resolve the account and get some benefits.

Settlements are available where you can do a pay off at a reduced amount if you can do a 1 time lump sum pay off.

Rehabilitation requires you to make an approved payment for 9-10 months, then the account(s) will no longer be in default, cleans up your credit, and the collection and miscellanious fees get waived. You will have to update a complete financial statement 1st ... just like if you apply for a car or personal loan. You have so justify why you can not pay it off in full and that you can support a monthly payment plan. The references are used in the event the collector loses contact with you, these will be people who will know how to get a message to you. Your personal account information can not be disclosed.

Want to go back to school and finish your education? Ask about Title IV (Title Four).

Yes ... I am a collector, and I think it's important for all of you to know true information about student loans instead is nonsense opinions that some people post on these walls. Believe it or not, we are trying to help you resolve your account before the account gets forwarded for garnishment.

The choice is yours ... usually voluntary payments are a lot cheaper than 15% of your wages. If we can't reach you, you leave us no other choice.

Here is a link to see what agencies are currently contracted by Dept of Education:


And another to learn more about the loan rehabilitation program:


Good luck!

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