25 year old loan collection

[warmocom]

What is the name of your state? Texas

Background:

I have been contacted by a collection agency concerning an alleged unpaid Perkins student loan my wife (we were not married at the time) had taken to use for attending school.

The principal amount is about $250 and with late fees and interest, the amount is now $533.

I do recall this loan and paying this loan because it was a huge chunk of our budget then. But I have no specific recollection of completing payback nor do I recall decifing NOT to pay it back.

I contacted the school in an attempt get information, but was unsuccessful as they are under contract with an agency for debt collection.

The school has changed names, the bank we used then is longer there and I don't keep records that long. So, obtaining independent documentation is going to be next to impossible.

I have requested from the agency (via phone) documentation concerning this loan. I'm not going to pay someone $533 just because I get a phone call and they say I owe them. That would be silly.

If we owe the money, we will pay it. That's just my moral character. But I'm not paying for something I don't clearly owe.

Fianlly, my wife was declared legally disabled with a mental disorder many years ago and receives a social security payment each month. It almost covers the cost of her health care and prescription medication.

I have read many pages of internet text concerning payback of a Perkins loan and there are discharge options, being disabled is one of them. But none if the loan is in default.

My questions are basic at this time ...

How can I force the agency to show me documentation that an unpaid loan, taken by my wife, exists?

How can I force further correspondence to be in written for so that I have a paper trail?

What recourse does the agency have if I dispute their claim?

Thanks.

[warmocom]

I am sending a simple "dispute" letter via registered mail today.

[zippysgoddess]

You CAN still apply for the disability discharge even if the loan is in default. I don't know who told you that you couldn't, but it is just not true. The disability discharge can be applied for at any time.

Just call the loan agency and request the appropriate paperwork, they will give you a form that you must fill out, as well as forms for her doctor to fill out. My loans were also in default and when I said I was disabled, it was actually the collection agency they hired who suggested I file the disability discharge.

[warmocom]

Originally Posted by zippysgoddess

You CAN still apply for the disability discharge even if the loan is in default. I don't know who told you that you couldn't, but it is just not true. The disability discharge can be applied for at any time.

[url]http://www.ed.gov/prog_info/SFA/StudentGuide/2002-3/perkins.html[/url]

Can my Federal Perkins Loan be canceled?

Yes. The loan can be cancelled if the borrower dies or becomes totally and permanently disabled. A loan can also qualify for cancellation under certain other conditions-as long as the borrower is not in default.

This sounds to me as though it is true ...

[zippysgoddess]

I can see that it is on there, and I had people tell me that also, but there are exceptions. Like I said, I just had the collection company itself send me discharge papers for my doc to fill out and my loan was for a lot more than the one you are speaking of and has been in default since 1991.

[warmocom]

Originally Posted by zippysgoddess

I can see that it is on there, and I had people tell me that also, but there are exceptions. Like I said, I just had the collection company itself send me discharge papers for my doc to fill out and my loan was for a lot more than the one you are speaking of and has been in default since 1991.

Good info ...

I don't believe the agency is aware that my wife has been declared disabled.

Next oppurtunity I will disclose that information and what I have researched.

Thanks for your help and input ...

I welcome other input as well.

[warmocom]

Texas ...

Received a letter from the College last Saturday.

The attempt to collect has been suspended indefinitely pending further investigation.

Also, the collection agency has been notified to stop any further collection efforts.

In trying to "read between the lines", it appears their records are nothing more than a name and a balance due. Afterall, it was 25 years ago ...

Would it be appropriate for me to respond requesting a letter discharging me of any further collection efforts? I really don't want this to come back to haunt me in another 25 years ....