Legal Question in Credit and Debt Law in California

Student Loans in Default- Collection Agency Ripping Me Off

I have student loans in default which have been charged 18.5% on initial take over of loans and new balance is also being charged a compound %. What sort of action can I seek to pay off the loan without paying all the interest. If I offer to pay the full amount in lump some, can I alleviate the collection fee in its entirety or at least a portion. Do collection agencies negotiate fees. Do I need an attorney to do this, or is it possible to do it myself.


Asked on 5/25/00, 11:58 am

2 Answers from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Student Loans in Default- Collection Agency Ripping Me Off

I suggest that you start with a consumer credit counseling agency and see what they can do. This is usually a great place to start since they can address your overall credit situation and they have sufficient credibility with most agencies to get interest rates renegotiated. Most of all their services are free or low cost.

If you have kump sum payoff capabilities you or a third party may negotiate a settlement amount.

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Answered on 7/06/00, 6:06 pm
Ken Koury Kenneth P. Koury, Esq.

Re: Student Loans in Default- Collection Agency Ripping Me Off

they negotiate all the time. buying them off at 50 cents on the dollar is common. you can do it with or without a lawyer.

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Answered on 7/07/00, 12:41 pm


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