Student Loans Back In Collections | My Financial Recovery

Student Loans Back In Collection

Posted on: May 26, 2009 by Matt

Well I was hopeful that my student loans in bad standing were on the upswing and I may be able to work with somebody to get them back into good standing. However – over the long weekend I received letters from a new collection agency notifying me that they will now be processing the account. I was discouraged and frustrated and started to wonder yet again if I would ever be able to get these loans out of my life. I am really not sure how to put the entire ball of feelings I have about these loans into words but rest assured it is not pleasant.

I discussed the issue with my girlfriend and she helped me get through the despair of having the student loan mess once again. It seems that I have been paying money to these folks for 7 years (while working with a collection agency that would not provide monthly statements or balance sheets) and that the debt has not gone down. It sucked any positive attitude I may have had right out of me but we were able to talk it through to a point where I could see some positives. The biggest of the positives: the new agency seems to send out monthly statements that show my balance and interest.

So all said and done I believe that the new plan will look something like this:

Call the new agency and set up payment arrangements based on what I can afford.
Call the original lender again and make another attempt to get back into good standing.
Continue to make minimum payments on the account(s).
When I am able to pay extra – apply the extra to the account with the lowest balance and attack that debt.

Of course the process would go quicker if I had some extra income but currently taking another job or working extra hours and trying to make more would mean less time with my family. I do plan to put any income from the blog here back into debt repayment but other than that I will not be pursuing additional employment so I can still spend time with my family.

What would you do? Can anyone else out there think of another option that I might be missing?

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