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View Diary: Please, Please read. I need information on student loan problems-I fear for my daughter’s future (36 comments)

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  •  I agree about collection agencies. I had some (2+ / 0-)
    Recommended by:
    cazcee, peregrine kate

    after me when I was a college student (refused to pay rent on an apartment in which the door had been kicked in by a burglar and the landlord kept putting off fixing).
    And after our son's illness, when the insurance companies were fighting about who had to pay, we started getting collection agencies trying to get the money from us instead.
    When I had the problem as a college student, my cousin who was a real estate agent told me to completely ignore the collection agencies, that they had no real power to hurt me in any way. So that's what we did.
    And I did the same after my son's illness.
    My understanding is that they get a % of everything they collect, but they don't have any real authority over the victims of their calls.

    We're not perfect, but they're nuts! -- Barney Frank

    by Tamar on Thu Nov 08, 2012 at 04:40:54 PM PST

    [ Parent ]

    •  Be careful. (4+ / 0-)
      Recommended by:
      Tamar, Gordon20024, cazcee, Catte Nappe

      If the collector owes the loan and it is a lot of money they will sue.  My understanding is there is no bankruptcy out and no statute of limitations (SOL) on student loans--BUT CHECK WITH AN ATTY ON THAT.  This is from 1999.  If there is a SOL, it probably applies in your state.

      Never, ever, ignore a summons to appear in court because it's as a communication from a debt collector.  They will take your daughter's default and she will automatically lose and then be subject to garnishment , etc.

      If they sue, your daughter needs, unfortunately, to file a "cross-complaint" against her mom--if the facts are as you say they are.

      "To recognize error, to cut losses, to alter course, is the most repugnant option in government." Historian Barbara Tuchman

      by Publius2008 on Thu Nov 08, 2012 at 04:47:19 PM PST

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      •  Why would they sue? (1+ / 0-)
        Recommended by:
        cazcee

        She's a college student, with no assets (in general, or backing the loan).  It's not worth it to them.  They know they can't get blood out of a turnip.  

        •  Think logically (7+ / 0-)

          They sue, get a default judgment for say $100,000.  That is legal paper that can be sold and transferred.  Once it's a judgment, it can't be challenged, but can be extended in 10 year increments.  

          Someday she'll have money, a home, valuable assets.  The judgment can't be stricken in bankruptcy.  It will go on her credit report and act as a lien.  It will be filed with the sec of state and the county recorder.

          It's a worthy investment for debt collector sharks.  

          "To recognize error, to cut losses, to alter course, is the most repugnant option in government." Historian Barbara Tuchman

          by Publius2008 on Thu Nov 08, 2012 at 05:09:05 PM PST

          [ Parent ]

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