What Loan Documentation Are You Entitled to Receive for Student Loan Debt
My question involves collection proceedings in the State of: Texas
Hi, First let me express my heartfelt appreciation for any kind soul who takes the time to respond to this; thank you! here's the deal & my question in a nutshell:
Student Loans in default; I do not have ay original loan documentation- I would very much like to see the amount of the original principal, as well as how in the world so much interest has accumulated, and most importantly, if it's legit. I am almost positive that the first time I started getting letters to repay my debt (around 2000) it was around the amount of 60K; now it is 122K; this doesn't seem right. If it is, I would simply like to see how- i.e., which institutions charged what interest rate over how much time to result in this amount that they are claiming I owe. Here's my question- Do I bother, or is it a waste of time? If so do I just ask the collector that keeps calling me, (they have already seized 8K of last years tax return). Thanks again for any help... :o) -Jenny
ps.- the 8K was all my husbands earnings, not my income. Also, It has been over 30 days since they first contacted me- WAY over.
Re: Likelihood of Getting Anywhere with Requests for Loans Documentation
While I can't comment on the usefulness of requesting the loan documentation, I will say this: Your husband needs to open a bank account in HIS name only, keep all his earnings there and file taxes separately from now on.
Re: What Loan Documentation Are You Entitled to Receive for Student Loan Debt
It would be very unusual for you not to be able to get copies of your notes, or at least your original balance, from a student loan lender, and not to be able to get an accounting of the principal, interest and payments. Typically, lenders will let you create an online account that you can use to check the balance due on your loan and your payment history. Granted, you appear to be in default and perhaps have been in default for years, which may complicate your access to any online accounting -- but we can't investigate that for you.
If you're at the point where you've been sued and now owe a judgment for the debt balance, then you can verify the amount of the judgment with the court that issued the judgment. You would have had the opportunity to seek information about and to dispute the loan principal and balances claimed when you were sued.
Re: What Loan Documentation Are You Entitled to Receive for Student Loan Debt
So there has been interest on $60 k for around 17 years? Even at 4% annually, compounding interest would easily bring the total to over $100K and very closet to $117k depending on how often interest compounded. And that is assuming that it was exactly $60k......You've ignored them for close to 17 years? You didn't keep the original documents but agree that you took out $60k? You didn't think that interest accrued on debt? I hope you at least got a college education out of that $60k! And it possible that they might have added some collection fees over the years if that was allowed in the agreement/loan paperwork
Student loans don't disappear -- they can even take your Social Security Payments when you get to retirement age. You really ought to try to start a repayment plan.
4% with annual compounding (but monthly is much more likely and will increase the amount owed as it compounds faster, but just wanted to give you a short chart on simple annual compounding -- monthly puts the simple end to about $118K owed)
$60,000.00 original amount
$62,400.00 end year 1
$64,896.00 end year 2
$67,491.84 end year 3
$70,191.51 end year 4
$72,999.17 end year 5
$75,919.14 end year 6
$78,955.91 end year 7
$82,114.14 end year 8
$85,398.71 end year 9
$88,814.66 end year 10
$92,367.24 end year 11
$96,061.93 end year 12
$99,904.41 end year 13
$103,900.59 end year 14
$108,056.61 end year 15
$112,378.87 end year 16
$116,874.03 endyear 17