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  1. #1
    Kizmet is offline Moderator
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    Collecting Defaulted Student Loans

    American College of Sports Medicine

  2. #2
    TomE is offline Registered User
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    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
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    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 12:12 PM.

  4. #4
    TomE is offline Registered User
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    I guess the industry just ain't what it used to be...

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  5. #5
    SteveFoerster is offline Resident Gadfly
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    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
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    More at http://stevefoerster.com

  6. #6
    Kizmet is offline Moderator
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    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 12:53 PM.
    American College of Sports Medicine

  7. #7
    jhp
    jhp is offline Registered User
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    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...

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  9. #8
    Johann is offline Registered User
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    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 03:02 PM.

  10. #9
    TomE is offline Registered User
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    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
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    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
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    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.

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