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  1. #1
    Join Date
    Dec 2013
    Location
    Marietta, Ga
    Posts
    1

    Default Debt Collectors and Treasury Offset of Defaulted Student Loans

    My question involves collection proceedings in the State of: Georgia

    I defaulted on my student loans (federal) approximately five to six years ago while I was living abroad. Since 2009 my federal refund has been applied to the balance of my student loans via the Treasury Offset program. I am currently getting calls from debt collection agencies regarding these loans (this recent batch has been quite aggressive and have even taken to calling my place of work, even after I have specifically instructed them not to). I feel a bit lost in this situation and would very much like some legal clarity: do these junk collectors have any sort of right to stake a claim on my debt that is being paid off through Treasury Offset? I have tried researching this matter and I can't seem to get anywhere with it.

    I would very much like to resolve this issue somehow and am appreciative of any advice anyone has to give!

    Kind regards,
    Heather

  2. #2
    Join Date
    Sep 2013
    Posts
    833

    Default Re: Debt Collectors and Treasury Offset of Defaulted Student Loans

    Quote Quoting lowehr
    View Post
    My question involves collection proceedings in the State of: Georgia

    I defaulted on my student loans (federal) approximately five to six years ago while I was living abroad. Since 2009 my federal refund has been applied to the balance of my student loans via the Treasury Offset program. I am currently getting calls from debt collection agencies regarding these loans (this recent batch has been quite aggressive and have even taken to calling my place of work, even after I have specifically instructed them not to). I feel a bit lost in this situation and would very much like some legal clarity: do these junk collectors have any sort of right to stake a claim on my debt that is being paid off through Treasury Offset? I have tried researching this matter and I can't seem to get anywhere with it.

    I would very much like to resolve this issue somehow and am appreciative of any advice anyone has to give!

    Kind regards,
    Heather
    Since federal student loans are extremely difficult to discharge, the collectors trying to get them are not the "junk" type who pay pennies on the dollar for debt. They are either affiliated with the original creditor or are a commission-paid agency. It is likely you can ask them to not call your place of work if you are not allowed to take personal calls there. You have to talk with them for that. The treasury offset only pays for debt you are in default on. Until you are current, the collectors have every right to attempt collection.

  3. #3
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Debt Collectors and Treasury Offset of Defaulted Student Loans

    Calls to your work might be a violation of the Fair Debt Collection Practices Act.

    Read it and your remedies at:

    http://www.ftc.gov/enforcement/rules...tices-act-text

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