Legal Question in Credit and Debt Law in Connecticut

Perkins student loans

We recently received a call from a collection agency attempting to collect over $2400 on a $900 federal student loan (National Defense Loans now known as Perkis) that she signed for in the early 1980's. She had deferred this loan while going to graduate school in the early '90's and lost track of it while paying off other other college (Stafford) loans. She never received notification that she owed the money and in the paperwork received from the school and the collection agency, it became clear that they were using the wrong SS# and address to find her. The school alumni department clearly has the right address. Now, they are telling her that she has no options but to pay the original amount plus interest totaling $2400. She is very willing to pay the loan, but the current interest seems exhorbitant. Is there a statute of limitations on these loans? Does she have any recourse to at least decrease the amount to something reasonable? If so, where can we find legal documentation to support her claim. What's unfortunate is that given the community health work she had done with lower income people, she might have been able to have the loan forgiven.

Thanks for your help.


Asked on 7/06/07, 11:02 pm

1 Answer from Attorneys
Max Rosenberg Rosenberg,Whewell, & Hite, LLC

Re: Perkins student loans

This may be a case ripe for the FDCPA or Fair Debt Collection Practices Act. In order to help you, we need to review your documentation. If there is a violation of the FDCPA by the collection agency you may be entitled to up to 1,000.00 back in settlement, plus the debt will be properly adjusted to the appropriate amount. All attorneys fees are paid by the Collection Agency, so this costs you nothing. Feel free to contact us. 203.540.5228

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Answered on 7/09/07, 12:22 pm


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