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negotiating with collection agency and university

  • Thread starter Thread starter henb
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H

henb

Guest
state of kentucky:

i am interested in going back to school for an additional degree and removing a perkins loan from my report. i spoke with the university about a student loan that was in default. the loan was for about 6000 dollars. the university told me that the loan had been sent to a collector and must be resolved before they could release any transcripts or let me take any classes even if i paid tuition in cash. originally the university told me that in order to let me take classes, i would have to make the loan current. to do this i would have to pay at least 3/4 the amount. i asked her to send the original promissary notes to the collector and that i would deal with him. the collector then calls me and asks if i want to negotiate in order to get back into school. i tell him yes. he then calls the university and gets back to me stating that there is a rehabilitation program that i could enroll in, in order to get the loan out of default stage and show it as in good status on my credit report. he tells me that after negotiating with the university, i would only have to pay 12 monthly payments of $150 ($1800 total) and this would rehabilitate the loan. i then call the university to confirm that the perkins loan department was in agreement with this. she tells me yes that the 1800 would rehabilitate the loan and then afterwards i would have to pay the loan amount, which she then tells me is for only 3800. she goes further to tell me that i cannot pay the 1800 off early because the government stipulates that the rehabilitation program has to be based on 12 consecutive months of repayment. question... does this sound right, and can't you have your credit showing payment in good standing after only a few months of timely payments? i'm wondering if the 1800 is only the fee for the collection agency, but my big question is will i get screwed later after paying the 1800 and not see any difference in my credit report?
 


Olvido

Junior Member
Request this information in writing and if possible make all payments in with check so that you have complete documented evidence of payments and whatnot. As to the length of the repayment, in order to rehabilitate it you do have to follow the 12 month program. sorry.
 

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