+ Reply to Thread
Results 1 to 11 of 11
  1. #1
    Kizmet is offline Moderator
    Join Date
    Feb 2007
    Location
    between the devil and the deep blue sea
    Posts
    15,150

    Collecting Defaulted Student Loans

    American College of Sports Medicine

  2. #2
    TomE is offline Registered User
    Join Date
    Sep 2016
    Posts
    382
    Wow. Definitely some eye-opening information. Hopefully this situation can get figured out as the student loan "bubble" continues to inflate at a seemingly exponential rate.

  3. #3
    Johann is offline Registered User
    Join Date
    Jun 2007
    Posts
    5,542
    As a former debt collector for many years, I just can't understand this payment method. Back in the day, professional collection companies were paid according to the amount collected. Period. What happened?

    J.
    Last edited by Johann; 05-21-2017 at 01:12 PM.

  4. #4
    TomE is offline Registered User
    Join Date
    Sep 2016
    Posts
    382
    I guess the industry just ain't what it used to be...

    https://i.stack.imgur.com/wqudY.jpg

  5. #5
    SteveFoerster is offline Resident Gadfly
    Join Date
    Jan 2004
    Location
    Northern Virginia & Dominica, West Indies
    Posts
    10,891
    Quote Originally Posted by Johann View Post
    As a former debt collector for many years, I just can't understand this payment method. Back in the day, professional collection companies were paid according to the amount collected. Period. What happened?
    You saw the words "federal government" in there, right?
    BS, Info Sys concentration, Charter Oak State College
    MA in Educational Tech, George Washington University
    PhD in Leadership, U. of the Cumberlands (in progress)
    More at http://stevefoerster.com

  6. #6
    Kizmet is offline Moderator
    Join Date
    Feb 2007
    Location
    between the devil and the deep blue sea
    Posts
    15,150
    It does shed some new light on the whole "student debt forgiveness" issue. Is it cheaper, at some point, just to let it go?
    Last edited by Kizmet; 05-22-2017 at 01:53 PM.
    American College of Sports Medicine

  7. #7
    jhp
    jhp is offline Registered User
    Join Date
    Sep 2013
    Posts
    616
    I just talked to a kid that has a student loan out. Bank refuses to take payments, keeping "payments in safebox" until loan is due, in essence forcing the interest to grow, not allowing the principal to be paid down...

  8. Advertisement

  9. #8
    Johann is offline Registered User
    Join Date
    Jun 2007
    Posts
    5,542
    Quote Originally Posted by jhp View Post
    I just talked to a kid that has a student loan out. Bank refuses to take payments, keeping "payments in safebox" until loan is due, in essence forcing the interest to grow, not allowing the principal to be paid down...
    Yee-owch! Both US and Canada have legal remedies for unconscionability. Might they apply here?

    https://en.wikipedia.org/wiki/Unconscionability

    J.
    Last edited by Johann; 05-24-2017 at 04:02 PM.

  10. #9
    TomE is offline Registered User
    Join Date
    Sep 2016
    Posts
    382
    Quote Originally Posted by jhp View Post
    I just talked to a kid that has a student loan out. Bank refuses to take payments, keeping "payments in safebox" until loan is due, in essence forcing the interest to grow, not allowing the principal to be paid down...
    Wow. Not a great situation. Is the interest running at this point? When the loan becomes "due", would he/she be able to pay the entire thing (or a lot of it) off?

  11. #10
    jhp
    jhp is offline Registered User
    Join Date
    Sep 2013
    Posts
    616
    Do not know any more details, plus the kid has a certain "I know better, old man" attitude.

  12. #11
    TomE is offline Registered User
    Join Date
    Sep 2016
    Posts
    382
    Quote Originally Posted by jhp View Post
    Do not know any more details, plus the kid has a certain "I know better, old man" attitude.
    That's too bad and I know that exact attitude (I had the same one for FAR too long!) However, I think that in a lot of these cases, the interest isn't running before payments become due so, hopefully, he/she won't have additional interest to pay if they decide to pay the whole thing off or much of it when the first payment becomes due.

Similar Threads

  1. Student Loans.
    By NorCal in forum General Distance Learning Discussions
    Replies: 5
    Last Post: 06-21-2016, 11:47 PM
  2. Student Loans Changes
    By Kizmet in forum General Distance Learning Discussions
    Replies: 0
    Last Post: 04-10-2016, 04:10 PM
  3. How much do you owe in student loans?
    By thomas_jefferson in forum General Distance Learning Discussions
    Replies: 20
    Last Post: 09-27-2010, 10:25 AM
  4. Student Loans
    By csoak001 in forum General Distance Learning Discussions
    Replies: 6
    Last Post: 08-18-2006, 09:37 AM
  5. Student Loans
    By brunetmj in forum General Distance Learning Discussions
    Replies: 1
    Last Post: 02-13-2001, 04:18 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts




1 2 3 4 5 6 7 8 9 10 11 12 13 14 15