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Posted in Student Loans
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tigertaryn

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Student loans sold to new collection agency?
I took out student loans in 2002 some were Federal loans but mostly private signature loans. The school I attended went bankrupt over being sued over not being an accredited school. I joined the class action lawsuit and got about $1,600. I owed and still owe about $40,000 in student loans. Long story but what ended up happening was my student loans went into default and then later showed up on my credit report as a "charge off" and then sat there until they were removed about six months ago. I was so happy to be free of that debt (at least on my credit report anyway). I have been working hard to get my score up to where I can buy a new car and get a home. But I was devastated to receive a letter in the mail from a collection company this week, they have bought my debt. My question is.. if they went into default and then charged off and then removed from my credit can they now be put back on to my credit report with this new collection agency? I realize I still owe it and they will continue to take my tax refunds etc and maybe even garnish my wages. Right now my main concern is after all this work I've done on my credit to have it all ruined if they report it on my credit.. can they do this? I know it's past the statue of limitations for them to sue me for the debt. With all the fees and accrued interest at etc, they are telling me the debt I now owe is about $50,000 and they are offering to settle it for $3,000. I considered paying it but I just got laid off and I do not have the extra funds to pay even the $3,000 and I only have 30 days to decide what to do. Any advice would be appreciated thx!

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What are you addressing here, Private or Federal? There is a big difference between the two. Garnishments, etc. should only apply to the Federal debt, not the private if you were never sued for it. If the debt is private that they are coming after, if the "statute of limitations" has expired, send them a "cease & desist letter" and not three thousand dollars. Consult with a FDCPA law firm if necessary. Read up on the FDCPA (fair debt collection practices act). If we are addressing private loans, then if the seven years has gone by they cannot add it back on your reports, if they do, you would dispute it due to the age. Please slow down a bit, do some reading on all of this and break things down between Federal and Private. Consult with an attorney if necessary. Come back and ask questions as needed.

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