Student loan...did I handle this okay??

[wnlbutterfly]

We have finally gotten DH student loan in good standing and regular payments worked into the budget. Today I got a call on mine. Currently I am not working (never during the summer) and when I do I make maybe $10k a year. The first person I talked with was very calm, no problems, and I explained I could not start any payments until Sept (substitute teacher). Of course I get transferred to the supervisor. She says I could make "good faith" payments until then to show intent and then in Sept start the repayment plan. Okay fine.

THEN they want my bank info. I refused to give it. They wouldn't agree to a money order. She finally said I could get a Visa card at Walmart. Okay, that will work but she wanted me to run over there and get it RIGHT NOW! No, sorry I have kids here, not dragging them out. I said they could call back tomorrow or next day, and then she gives me this "it has to be within 12 hrs of making contact with me". Yeah right. I have been in default for awhile.

The other things they try to scare you with is having your tax refund garnished. Sorry, but we have our withholdings set so that there isn't a refund, and when there is, we just file Injured Spouse. Also garnishment of my wages, which from the sounds of it I don't make enough for them to be able to do that either.

And of course the "maybe you'll want to go back to school?", and I can't get MORE loans if I am in default. As if I want to add to this problem??

Anyway, I will make a trip out this evening to get a Visa card so that they can't take anymore than what I put on it. I assume I was correct in not giving this info to them? I have heard way too many stories of them taking more than they were suppose to.

And yes, I do want to get this back into good standing. They say I could pay it all off with just $20k. Well, thanks...guess I should go rob a bank. She even suggested I get a bank loan to pay it off. I don't know what bank is loaning money for an unsecured loan.

Just needed to vent...I hate they just think we are sitting on money and refusing to pay bills.

[jpg7n16]

...Anyway, I will make a trip out this evening to get a Visa card so that they can't take anymore than what I put on it...

Ummm no you're not!

That is some scare tactic to get you to pay them however they can convince you to. Don't take out a credit card to satisfy this collector.

And don't give them your bank info either.

Give them nothing until you have it.

They wouldn't agree to a money order.

Maybe someone knows more about that than me, but I don't like the sound of that.


Edit: Yeah see that seems a bit fishy. From Repaying Student Loans Held by the U.S. Department of Education

""What address do I send my payments to?"

If you have a defaulted student loan held by the U.S. Department of Education, you can mail a check or money order to the address below. If you are at all unsure about the status of your loan, or who currently holds your loan, please call us first at 1-800-621-3115 before sending in payment. You may also use Loan Locator to help you find out what lenders currently hold your loan(s).

U.S. DEPARTMENT OF EDUCATION
PO BOX 105028
ATLANTA, GA 30348-5028

(Please be sure to include your Social Security Number on any payment instrument that you send us)."

[maat55]

Get all agreements in writing. Do not give info to personal accounts. You could establish an separate account for withdrawals for payments.

[mdcrim]

I think the Visa OP was refering to was a prepaid credit card, so they can only take what the person puts on there. Again, I would also get the agreements in writing.

[neguy11]

You don't say if it's a federal or private loan. They are totally different. If it's a federal loan, do you have any unemployment or forbearance time available? If it's a private loan, hate to say it, there's not much you can do. You were right to not give them your bank info, however, they will probably charge you a fee to use a Visa debit card.

Most of what she was saying was probably a scare tactic, there is some truth to the statements, but they are just trying to create a sense of urgency (as they may get a commission based on how many payments they collect).