Collecting Defaulted Student Loans

Discussion in 'Political Discussions' started by Kizmet, May 20, 2017.

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  1. Kizmet

    Kizmet Moderator

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  2. TomE

    TomE New Member

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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. Johann

    Johann Active Member

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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 a moderator: May 21, 2017
  4. TomE

    TomE New Member

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    I guess the industry just ain't what it used to be...

    [​IMG]
     
  5. SteveFoerster

    SteveFoerster Resident Gadfly

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    You saw the words "federal government" in there, right?
     
  6. Kizmet

    Kizmet 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?:dunno:
     
    Last edited by a moderator: May 22, 2017
  7. jhp

    jhp Member

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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...
     
  8. Johann

    Johann Active Member

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    Yee-owch! :shock: Both US and Canada have legal remedies for unconscionability. Might they apply here?

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

    J.
     
    Last edited by a moderator: May 25, 2017
  9. TomE

    TomE New Member

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    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?
     
  10. jhp

    jhp Member

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    Do not know any more details, plus the kid has a certain "I know better, old man" attitude.
     
  11. TomE

    TomE New Member

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    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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