Testimonials

Testimonial

“Kenneth is an innovative entrepreneur who has a passion for helping individuals navigate through the complex web of private and Federal student loans. His investment in FMI and commitment to his student clients’ success is testament to his success.”


Angel Beltran Integration Project Manager, Talmer Bank & Trust

Thursday, October 25, 2012

The Student Loans Collections Process


Student loan collections don’t only involve phone calls from the U.S. Department of Education's account management department; collections agencies contracted by the Department Of Education notify you of your defaulted student loan debt.  Defaulting on your student loans causes long term consequences, especially on federal student loans. The penalties are far more severe than if you merely stop paying your credit card bills. 

Many non-students feel that if their taxes are being taken then the loan is being taken care of.  So allow me to put this into perspective for you-offsetting your tax refunds happens once a year so if there is a balance after the offset fees and penalties are added to that balance also.  In addition to an offset non-student may also face administrative wage garnishment (AWG).
What Can I Do?

Loan rehabilitation is a great option for getting your loans out of default if you are employed and can demonstrate that you have the financial ability to repay the loans back.

What’s In It For Me?

If you choose to rehabilitate your loan, at the end of your rehabilitation (9 months) you are eligible for all of your borrower rights such as deferment and forbearance benefits, stops possible administrative wage garnishment, stops the possible IRS offset, credit report is updated and you are now eligible to return back to school. Individuals that say collection agencies must stop calling you is not correct, if you default on your loan rehabilitation the collection agencies will call you (possibly) or they will pursue the governments’ legal rights. (I know this because I was a former student loan collector)

Your Rights During The Collection Process

The good news is that the collection agencies that are awarded contracts from the Department of Education still have to follow federal law—The FDCPA protects consumers against unfair, abusive, and harassing debt collectors.

Bottom line: you have options and you have rights 

Student loan debt can be overwhelming, but depending on the type of loans, and the status of your loans, you should have more than one repayment option. If you need help understanding and choosing a repayment plan or if your student loans are in collections, please contact us we can help you. 

In the right corner there is a pop up contact request that allows you to ask a question or schedule a free 30 minute consultation.

Financial Management Institute Inc
http://www.teamfmi.com
Email: clientservices@teamfmi.com

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