Business & Investing
Sponsored by

In a bad spot with student loans.

4,902 Views | 39 Replies | Last: 7 yr ago by histag10
PoorGuy
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
4:38p, 12/8/16
I'm posting this under a sock for obvious reasons.

I left school back in 2009 without graduating. For several years, I couldn't pay on my student loans, or could only pay a payment or two at a time. I was behind on almost all of them, but had worked it out to prevent default... or so I thought.

I tried logging on to my Howdy portal to pull up an unofficial transcript (which I need for a new job). Blocked due to a hold.

Turns out, I wasn't paying an emergency tuition and fee loan.

It's been sent to collections, and I apparently owe (pay off amount) $15.5k. Obviously I don't have this much money.

What can I do?

Does A&M do payment plans? Do they "settle" a loan balance? What are my options?

edit to add: And I was looking into refinancing my other loans with Sofy. Is that an option with this?
Reply Quote
1 edit
suburban cowboy
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
4:51p, 12/8/16
AG
Username checks out
Reply Quote
17
suburban cowboy
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
4:52p, 12/8/16
AG
Sorry I don't have a legit answer for you.
Reply Quote
1
BBDP
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
4:54p, 12/8/16
AG
call/email Dave Ramsey?
Then take his class.
Reply Quote
bmks270
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
5:08p, 12/8/16
AG
A&M loans are crap. One thing about A&M I really did not like was how they did tuition/financial aid/loans.
Reply Quote
2
1 edit
IrishTxAggie
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
5:31p, 12/8/16
AG
Lending tree?
Reply Quote
Complaint Investigator
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
10:27p, 12/8/16
AG
FFS people. This guy needs help for a job. Dave Ramsey can shove it - this individual needs help now.

Ok, emergency tuition and fee loan is $15.5K? Or you are behind on that and behind on student loans? If student loans are separate, are they private or federal?

A&M will absolutely do payment plans. Call, explain, and tell them you need your transcript for a job and will pay them X amount per month. Then pay them X amount per month.

For federal loans - you can rehab them. You need to call. Private loans - if you have Sallie Mae/Navient - they will charge you for forbearance/deferments. You're already effed with them.

ETA: The good news is - as long as it isn't federal loans - you are outside the statute of limitations for being sued, and if 2009 was when you defaulted - they shouldn't show up on your credit report any longer. The bad news is -you need your transcripts.
Reply Quote
15
1 edit
cheeky
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
1:52a, 12/9/16
AG
no degree = no need for a transcript

be accountable, else you're part of the problem
Reply Quote
1
94chem
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
8:16a, 12/9/16
Quote:
no degree = no need for a transcript
That makes no sense at all.
Reply Quote
16
1 edit
Whitetail
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
9:04a, 12/9/16
AG
Not an expert, but if the loan has been sent to collections, you can't make a deal with A&M on it. You'd have to deal with the collections agency.
Reply Quote
1
PoorGuy
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
9:59a, 12/9/16
Thanks for the helpful replies.

I called A&M and spoke with them. Since the loans have been sent to collections, they won't make payment plans or anything, and require the loans to be paid in full before they will let me view/release any transcripts.

The irony being that there is obviously no way I can make the lump sum payment.

SoFi requires graduation for their student loan consolidation program.

My other loans are in good standing. I'm currently paying $650/mo on them.

I guess my next step is to contact the collection agency and see if they will make a deal?
Reply Quote
blumpkin
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to PoorGuy • 10:19a, 12/9/16
AG
No. Tell them you can't pay it. Hang up w no resolution if u have to. They'll call back and offer a deal. Negotiate down from there. Don't let them bully you. They bought your loan for pennies on the dollar & have plenty of room to come down & still profit.
Reply Quote
23
1 edit
Matsui
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to blumpkin • 1:33p, 12/9/16
AG
Follow that advice. Tell them you can't pay it. They will call back with an offer.
Reply Quote
1
PoorGuy
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to blumpkin • 1:48p, 12/9/16
Will do.

Anything I need to be sure of?
Reply Quote
Vernada
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to blumpkin • 1:49p, 12/9/16
AG
blumpkin said:
No. Tell them you can't pay it. Hang up w no resolution if u have to. They'll call back and offer a deal. Negotiate down from there. Don't let them bully you. They bought your loan for pennies on the dollar & have plenty of room to come down & still profit.
Absolutely this.

They will bully and threaten you with all kinds of lies.

Be firm until they make you an offer.
Reply Quote
1
Vernada
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to PoorGuy • 1:51p, 12/9/16
AG
PoorGuy said:
Will do.

Anything I need to be sure of?
If you can, avoid giving them any address other than a PO Box.

Aggressive collections agencies have been known to stray into very grey areas by approaching debtors at home and/or trying to embarrass them at work.

Before you contact them, do a little google research to understand what your rights are.
Reply Quote
1
Bitter Old Man
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
1:55p, 12/9/16
AG
Question: If A&M sold his note, then how can they require full payment on it? If they do require full payment, then trying to make a deal is a waste of time.
Reply Quote
2
Vernada
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
1:57p, 12/9/16
AG
This is a pretty good in-depth article on the seedier side of consumer debt:

http://www.nytimes.com/interactive/2014/08/15/magazine/bad-paper-debt-collector.html
Reply Quote
swimmerbabe11
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
2:31p, 12/9/16
Financial Aid Counselors were/are as bad as home loan people before the bubble burst.
Reply Quote
2
swimmerbabe11
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
2:36p, 12/9/16
https://texags.com/forums/57/topics/2742290/1

There is some good commentary in here and some links. I can't find the one on bankruptcy though.

https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service
Reply Quote
1 edit
HollywoodBQ
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
5:07p, 12/9/16
AG
Is there anything preventing you from joining the Military?
Reply Quote
4
Complaint Investigator
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Vernada • 8:03p, 12/9/16
AG
Vernada said:
blumpkin said:
No. Tell them you can't pay it. Hang up w no resolution if u have to. They'll call back and offer a deal. Negotiate down from there. Don't let them bully you. They bought your loan for pennies on the dollar & have plenty of room to come down & still profit.
Absolutely this.

They will bully and threaten you with all kinds of lies.

Be firm until they make you an offer.

Record the F out of the conversations if you are in Texas. If they threaten and bully you, take those to a consumer loan attorney, and let them work for you on contingency.

ETA Also - tell employer A&M has put a hold on your transcipts, and you are trying to get to the bottom of it. Ask if calling to confirm you attended TAMU at one point would be good enough.
Reply Quote
1 edit
ATM9000
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Vernada • 8:13p, 12/9/16
AG
Vernada said:
This is a pretty good in-depth article on the seedier side of consumer debt:

http://www.nytimes.com/interactive/2014/08/15/magazine/bad-paper-debt-collector.html

I literally finished the long form book of this article today... really good read!
Reply Quote
91AggieLawyer
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
9:45p, 12/9/16
AG
At this point you might want to go visit with an experienced bankruptcy attorney. Yes, I know federal loan debt can't be discharged, however, with certain bk procedures, non-dischargable debt has been reduced -- sometimes substantially. I know this happened with respect to IRS employee withholding debt (the worst kind of IRS problem).

The one experience I had with consumer BK was covering a hearing, and the law protects the debtor in many cases almost to an absurd extent. The cram down provision, for example, allows a debtor to essentially trash out their mobile home and use that lesser value to their advantage.
Reply Quote
always gig em
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to PoorGuy • 2:30p, 12/10/16
AG
I had a very small loan through A&M for which I also needed a transcript (less than 1k, a few years ago) and I too didn't have the full amount to pay for my transcript for which I also needed for a job. I went onto the national student loan database which has the dates for schools you have attended (also lists amounts obviously but there was an option to just list dates). For me, this was good enough to get the job and then paid off the loan a couple months later.

Maybe the dates only thing can help you, just an FYI.
Reply Quote
1
histag10
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
10:48p, 12/10/16
AG
Ask if they will accept an unofficial transcript. You can print one off fro. The howdy portal as a former student.
Reply Quote
bmks270
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
10:31a, 12/11/16
AG
A&M should be ashamed of themselves for withholding transcripts as leverage for loans. That is really a bad way to treat students.
Reply Quote
2
histag10
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to bmks270 • 10:38a, 12/11/16
AG
bmks270 said:
A&M should be ashamed of themselves for withholding transcripts as leverage for loans. That is really a bad way to treat students.


They withhold transcripts for overdue books and parking tickets. What do you expect them to do with loans?

It makes perfect sense to me. It's not like the withhold transcripts if you are current on your loans.
Reply Quote
11
TriAg2010
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to histag10 • 11:50a, 12/11/16
AG
histag10 said:
bmks270 said:
A&M should be ashamed of themselves for withholding transcripts as leverage for loans. That is really a bad way to treat students.


They withhold transcripts for overdue books and parking tickets. What do you expect them to do with loans?

It makes perfect sense to me. It's not like the withhold transcripts if you are current on your loans.

Book fees and parking tickets are owed to the university. In this case, the university already got their cash. The debt is with a third party and not the university.

The worst part is that it is undermining this guy's ability to earn an income and pay the debt. It's self-defeating.
Reply Quote
2
histag10
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
12:12p, 12/11/16
AG
Maybe I'm wrong here, but just because a loan has been sent to collections, doesn't mean the University no longer owns the debt. Sometimes, institutions contract collection agencies on their behalf to collect in an attempt to collect the debt before it is sold, usually for x% of total debt collected.

Withholding the transcript is really the only leverage the University has. It's not like this guy put something up as collateral for the loan, it is quite literally the only thing they can withhold or leverage him with to get their money back.

Again, I don't blame the University for doing it.
Reply Quote
10
2 edits
mhayden
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
12:35p, 12/11/16
And even if they are not still getting a percentage of it, the sale of the debt is likely with the guarantee that the school isn't going to relinquish what leverage they have.
Reply Quote
techno-ag
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
8:53p, 12/11/16
AG
Get a 3 year Lending Club loan. Explain what you need it for in the application. Interest rate will probably be very high. But you'll have it paid off in 36 months, or less if you hustle.

/2 cents
Reply Quote
Comeby!
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
10:15a, 12/12/16
AG
So the university is saying "pay off the collections company and you can have a transcript?" At this point what will they do? Call the collection agency and ask if you paid up? What's their motivation to do that?
Reply Quote
histag10
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
10:25a, 12/12/16
AG
If the university still owns the debt, they collection agency will collect the money, and then give it to the university minus their collection fee.

Even if they dont own the debt anymore, I would assume the collection company would send them a satisfaction of debt form/letter, letting the university know the obligation has been met, and they can release whatever leverage they had. Or if it goes to court, I would assume the original creditor would receive a copy of the judgement.
Reply Quote
1 edit
CapCity12thMan
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
10:31a, 12/12/16
AG
I would think the univ has asked a collections agency to help them collect on the debt. The univ is still owed money. I could see why they would not release a transcript until they are paid. That makes sense to me.

Now, if someone wants to pay off the debt and then come try to collect from you, the univ would be financially satisfied and then I don't see why they would care about releasing the transcript to you.

I am not a collections/debt person, this is just my analysis of the situation.
Reply Quote
Page 1 of 2 ▼
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.