Taking Action On Student Loans In Collection

Posted on: September 8, 2008 by Matt

In the past week I have been working once again to get my student loans in collections cleaned up and into good standing somehow. While I would love to simpy just pay them off and be done with them, the balance is much too high (~$22,000). So I have been investigating other alternatives that have been suggested to me in a recent meeting with a credit counselor / financial planner.

So far I have begun the process by:

Contacting VSAC: I sent an email to the folks over at Vermont Student Assistance Corporation. I asked for any assistance they may be able to provide, any resources they can refer me to and any avenues that they suggest that I pursue. The repsonse indicated that they do not offer consolidation on private loans, that there are programs that do but they can not recommend any. In general there was not much information other than they can not help but there are other companies that may be able to.
Contacting the original lender: I researched the financial aid information from my college and located a phone number for the original lender for the loans in question. I called them, updated my contact information and discussed the situation with them. I was informed that they had returned the loans to the point of origin and they no longer have any control over the loans. I asked if there was a contact number for the original lender and was informed that it was National Collegiate Trust and since it is a trust there is nobody to call.
Researched Online: Performed research online for GATE loans and located a page with a contact number for becoming a GATE lender. Called the number (First MarbleHead Bank) and stated I was looking to talk to somebody about GATE loans. I was then transferred to a voice mail box. I left a message and have not yet heard back.
Contacted the state Attorney General’s office: I then reviewed my progress so far and believe that I will need to be prepared to work directly with the collection agency. I emailed the Attorney General’s office asking for any information or guidance that they can provide. I have not heard anything back yet though.
Began to research private loan This has not been terribly productive yet as most companies state that they will not work with you if you have defaulted or collection activity on your account.

All said and done it was a productive week for trying to get things in line. I plan to stay positive on getting things sorted out as my past negativity has kept me from getting this all straightened out.

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