So. I Was Denied Federal Loans Due To An Old Open Collection Forum

[Anonymous Loser]

Can you be more specific about when in 2003 the original debt accrued? In many jurisdictions, the Statute of Limitations on consumer debt collections is seven years.

[wowzers]

Can you be more specific about when in 2003 the original debt accrued? In many jurisdictions, the Statute of Limitations on consumer debt collections is seven years.

August of 2003. Wow, it's almost too ridiculous. The debt was assumed by the current collections firm in November, 2005. I've always known about this collection, so I can't feel like I've been totally blind sided, but I never thought it would be an issue. Freaking amazing.

[wowzers]

Ouch. I have no advice but, to hack the thread.. does anyone know how these sorts of things will affect loans if everything is paid? I have thousands in medical bills that will be paid in full by the time law school rolls around (hopefully I'll get the companies to remove them), but should I expect to get denied anyway?

crap

I don't know man, but good luck.

[romothesavior]

It is only May. I can't imagine this situation barring you from attending LS this fall. Just contact whoever you need to get in contact with and take care of it/

[Pearalegal]

Can you be more specific about when in 2003 the original debt accrued? In many jurisdictions, the Statute of Limitations on consumer debt collections is seven years.

August of 2003. Wow, it's almost too ridiculous. The debt was assumed by the current collections firm in November, 2005. I've always known about this collection, so I can't feel like I've been totally blind sided, but I never thought it would be an issue. Freaking amazing.

Um, whats amazing about this? You didn't pay an effing collection bill or take it seriously. No matter if you thought you deserved it or not...c'mon.

The only thing that is amazing if your own stupidity over this. Pay your damn bills and go forward from there. Jesus.

[nit00]

Does anyone know if you have a collection listed on your credit report as "paid", but it's still listed in your negative information sections if that will prevent you from getting a GradPLUS loan?? Not sure if they just see 1 item in the neg section and don't bother too see if it has been paid.

[wowzers]

It is only May. I can't imagine this situation barring you from attending LS this fall. Just contact whoever you need to get in contact with and take care of it/

I hope you're right. I literally just found out right before 8:00 PM Eastern (when the disbursement call center closes) and after a short discussion with the rep, I now know that I have hoops to jump through.

"Doo, doo, doo, filling out my grad plus app. La de da, and........ send. WTF?! Denied?" And then panic set in.

[beesknees]

According to Michigan's financial aid talk at their ASW, she said that as far as federal loans that are credit-based (Grad Plus) it only took a one time snap shot of your credit and if everything was cleared at that point, then you'd be approved. So pay the collection agency. AT&T already sold the debt, so they don't have anything to do with it anymore. Then you can appeal the credit decision and you should be able to qualify because its checking your credit for negative items, like an unpaid debt, not necessarily a high credit score.

Well, I already applied so my one time snap shot may have been taken, and I could be sunk. Or do they look again? I'm a bit confused now. The collection was originally filed in '03, but then refiled by a different company in '05.

Yes, just reapply for the loan. They'll take another snap shot report. Just be sure to take care of the item before doing this, of course.

[wowzers]

Can you be more specific about when in 2003 the original debt accrued? In many jurisdictions, the Statute of Limitations on consumer debt collections is seven years.

August of 2003. Wow, it's almost too ridiculous. The debt was assumed by the current collections firm in November, 2005. I've always known about this collection, so I can't feel like I've been totally blind sided, but I never thought it would be an issue. Freaking amazing.

Um, whats amazing about this? You didn't pay an effing collection bill or take it seriously. No matter if you thought you deserved it or not...c'mon.

The only thing that is amazing if your own stupidity over this. Pay your damn bills and go forward from there. Jesus.

I know. I get it. I blame myself. I feel like a complete idiot for not taking a $200 collection seriously. I just didn't consider it to be an issue as it didn't prevent me from securing great interest rates on an auto lease and then an auto loan. I've paid everything else on time and my credit card balances are low. But yeah, this is my fault. I know.

[Pearalegal]

I know. I get it. I blame myself. I feel like a complete idiot for not taking a $200 collection seriously. I just didn't consider it to be an issue as it didn't prevent me from securing great interest rates on an auto lease and then an auto loan. I've paid everything else on time and my credit card balances are low. But yeah, this is my fault. I know.

Sorry, shouldn't have been such a bitch. But...always take collections seriously.

Pay it, and then get your student loans. The fact that you don't think you deserved it really, really doesn't matter right now. I'm sure it'll be fine after that.

[wowzers]

According to Michigan's financial aid talk at their ASW, she said that as far as federal loans that are credit-based (Grad Plus) it only took a one time snap shot of your credit and if everything was cleared at that point, then you'd be approved. So pay the collection agency. AT&T already sold the debt, so they don't have anything to do with it anymore. Then you can appeal the credit decision and you should be able to qualify because its checking your credit for negative items, like an unpaid debt, not necessarily a high credit score.

Well, I already applied so my one time snap shot may have been taken, and I could be sunk. Or do they look again? I'm a bit confused now. The collection was originally filed in '03, but then refiled by a different company in '05.

Yes, just reapply for the loan. They'll take another snap shot report. Just be sure to take care of the item before doing this, of course.

Will do tomorrow. Will give the collections people $200 via phone. Gladly. Then I'll beg them to update it immediately, which probably won't happen. I'll send the receipt to my contact at the disbursement center and then I'll wait.

[wowzers]

I know. I get it. I blame myself. I feel like a complete idiot for not taking a $200 collection seriously. I just didn't consider it to be an issue as it didn't prevent me from securing great interest rates on an auto lease and then an auto loan. I've paid everything else on time and my credit card balances are low. But yeah, this is my fault. I know.

Sorry, shouldn't have been such a bitch. But...always take collections seriously.

Pay it, and then get your student loans. The fact that you don't think you deserved it really, really doesn't matter right now. I'm sure it'll be fine after that.

I know. If you think about it, every single thing on a credit report should matter when it comes to student loans. There is no f-ing collateral. Seriously, if one drops at the end of second year with a mountain of debt and refuses to pay, what the fuck can they really take? It's not like an auto loan, obviously. Yeah, they then garnish wages, etc, but I guess the fact that there is no collateral is key.

I agree with you, btw. I just can't believe I didn't think to research and correct this sooner.

[jmhendri]

Incidentally, can you use a cosigner for gradplus?

[TexasDemocrat]

It is from late 2003 and it's for only $200. Any chance I'll make it on appeal? On my credit report, it shows that the current collection agency grabbed it in 2005. I pulled my equifax and it shows that the negative item reported 05/2010, which must have been the inquiry from the student loan people. I thought I was being unfairly charged for cell phone service that I didn't use (cell phone companies can be shady). I guess I should have paid it, eh?

How does this type of thing usually play out? i've had two auto loans in the past 5 years and I've paid every other bill, including my undergrad loans of course, on time. My credit score is a 700~.

Am I screwed?

No, you're not screwed, but your best shot is to have it completely removed from your report rather than having a paid debt (which is still better than an outstanding debt). Write a letter to the collection agency offering to pay the debt in full in exchange for having the debt entirely removed from your report.

http://credit.about.com/od/debtcollecti ... delete.htm

[TexasDemocrat]

Incidentally, can you use a cosigner for gradplus?

Hi.

I'm watching your favorite movie right now.

[wowzers]

It is from late 2003 and it's for only $200. Any chance I'll make it on appeal? On my credit report, it shows that the current collection agency grabbed it in 2005. I pulled my equifax and it shows that the negative item reported 05/2010, which must have been the inquiry from the student loan people. I thought I was being unfairly charged for cell phone service that I didn't use (cell phone companies can be shady). I guess I should have paid it, eh?

How does this type of thing usually play out? i've had two auto loans in the past 5 years and I've paid every other bill, including my undergrad loans of course, on time. My credit score is a 700~.

Am I screwed?

No, you're not screwed, but your best shot is to have it completely removed from your report rather than having a paid debt (which is still better than an outstanding debt). Write a letter to the collection agency offering to pay the debt in full in exchange for having the debt entirely removed from your report.

http://credit.about.com/od/debtcollecti ... delete.htm

You are awesome. Thank you for the info. I'll call them first and discuss the option. Then, I'll fax the letter.

Thank you for the help.

[wowzers]

Incidentally, can you use a cosigner for gradplus?

I don't know. I just couldn't ask anybody I know to do that.

[TexasDemocrat]

You are awesome. Thank you for the info. I'll call them first and discuss the option. Then, I'll fax the letter.

Thank you for the help.

I've done this before.

Most collection agencies are so greedy (especially on an old debt that they probably think they won't ever collect) so they'll agree to almost anything to get some money out of you. Whatever you do, just make sure you get everything in writing and do not give them your checking account or credit card number. Send them a money order. They’re shady people.

[wowzers]

You are awesome. Thank you for the info. I'll call them first and discuss the option. Then, I'll fax the letter.

Thank you for the help.

I've done this before.

Most collection agencies are so greedy (especially on an old debt that they probably think they won't ever collect) so they'll agree to almost anything to get some money out of you. Whatever you do, just make sure you get everything in writing and do not give them your checking account or credit card number. Send them a money order. They’re shady people.

Thanks again. Incredibly helpful.

[jmhendri]

Incidentally, can you use a cosigner for gradplus?

I don't know. I just couldn't ask anybody I know to do that.

I'm good for it

actually I have relatives who I really had to talk out of selling property to help me with this. I want to be responsible for paying off my own education but I'm not sure if my credit will let me do it all by my lonesome.

@TD, you found a copy of Puffy Areolas? Weird...

[mirpanda]

Dispute with the tradeline with the credit bureaus as obsolete. Since it is so close to falling off of your report, it is very likely that they will remove it from your credit report if you dispute it this way, rather than going through the trouble of verifying it with the collection agency. Also, it would take longer, but you can request validation of the debt pursuant to the FDCPA from the collection agency. If they cannot validate that the debt is yours or that it belongs on and is accurately reporting on your credit report, then they need to remove it. Google debt validation for more information.

There are most definitely ways to get this removed from your credit report without having to pay an erroneous debt. But if you insist on paying it, write to the collection agency and request a "pay for delete" in which you agree to pay them in full if they agree to remove the tradeline from your credit reports as a paid collection barely looks better than an open collection. A "pay for delete" could very well work for you-- with a debt that old, these people are not expecting to be paid and will jump on that kind of offer. Don't mention you're trying to get student loans and that the tradeline is preventing you from doing so. This gives them leverage. However, you can mention it if they don't respond favorably to a debt validation request as leverage of your own, citing that as damages in case you were to sue. HTH

[mirpanda]

Oh, didn't see that someone else already pointed OP in the direction of credit repair and PFDs.

[wowzers]

Dispute with the tradeline with the credit bureaus as obsolete. Since it is so close to falling off of your report, it is very likely that they will remove it from your credit report if you dispute it this way, rather than going through the trouble of verifying it with the collection agency. Also, it would take longer, but you can request validation of the debt pursuant to the FDCPA from the collection agency. If they cannot validate that the debt is yours or that it belongs on and is accurately reporting on your credit report, then they need to remove it. Google debt validation for more information.

There are most definitely ways to get this removed from your credit report without having to pay an erroneous debt. But if you insist on paying it, write to the collection agency and request a "pay for delete" in which you agree to pay them in full if they agree to remove the tradeline from your credit reports as a paid collection barely looks better than an open collection. A "pay for delete" could very well work for you-- with a debt that old, these people are not expecting to be paid and will jump on that kind of offer. Don't mention you're trying to get student loans and that the tradeline is preventing you from doing so. This gives them leverage. However, you can mention it if they don't respond favorably to a debt validation request as leverage of your own, citing that as damages in case you were to sue. HTH

Thank you a ton for the advice.

[A'nold]

You are awesome. Thank you for the info. I'll call them first and discuss the option. Then, I'll fax the letter.

Thank you for the help.

I've done this before.

Most collection agencies are so greedy (especially on an old debt that they probably think they won't ever collect) so they'll agree to almost anything to get some money out of you. Whatever you do, just make sure you get everything in writing and do not give them your checking account or credit card number. Send them a money order. They’re shady people.

TITCR. I just went through this like 6 months ago. Don't let them know that you are in a hurry and tell them you'll pay it in full if they take it off your report completely.

[wowzers]

You are awesome. Thank you for the info. I'll call them first and discuss the option. Then, I'll fax the letter.

Thank you for the help.

I've done this before.

Most collection agencies are so greedy (especially on an old debt that they probably think they won't ever collect) so they'll agree to almost anything to get some money out of you. Whatever you do, just make sure you get everything in writing and do not give them your checking account or credit card number. Send them a money order. They’re shady people.

TITCR. I just went through this like 6 months ago. Don't let them know that you are in a hurry and tell them you'll pay it in full if they take it off your report completely.

Really? Wow. These collections people sound a bit sadistic.