Whew am I glad I found this site again. I was having trouble with my loans before, and got it sorted out so I didn't bookmark this place, now I am having trouble again and well yeah I come crawling back :)

I have a Federal Student Loan worth a little over $5,000. I just finished a 6 month term of payments of about $180 per month. The agency handeling my loan (The Collection House) just called today to inform me that I can continue payment plans, I just have to have $2,600 to 'enable' me to make payments. Payments as low as $50.00 aparently. Unfortunatly I do not have $2,600, as the $180 per month was pretty killer to me (I make only about $11/hr, living on my own). Now I am fully prepared to do payments, but they 'demand' the lump sum payment to do payments. They are threatening that if I do not go through with the lump sum payment I will have my wages garnished yadda yadda yadda. I thought I was doing the right thing by making payments here, but I guess I was wrong? Do you guys have any suggestions??

I wouldnt worry too much they cant get blood from a stone. just send in your finnancial staement outling your current finnacial situation along with your 6 months of post dated cheques... they cant refuse your payment if you cant afford to give more.

the collector is only trying to get a bigger commision off of your $2600

troy  

I can just send them cheques? I had an automatic withdrawl system setup before.

Hi there, I am new and i would like to add my question relating the same problem.

I sent checks postdated for 5 month of 100 each to be cash every 2 weeks , but the guy from Alliance 1 does not want to cash them , have not return them to me -He is demand full payment

what should i do ?

 maria,

 If the agency has been in receipt of post-dated cheques, then they would be required to hang on to them. If they are not casdhing them, that is a problem. YOu will always find that collectors will try to get full payment because it is a commission issue. They don't make any real money from people who make small payments.

 If you require help, let me know.

Johnny

Shaun, don't worry! They cannot take to you to court if you are willing to make payments and are not avoiding their calls. These are just threats. I was also with The Collection House and they said the same crap, that they would only accept a lump sum. Guess what? They accepted payments based on what I could pay. They have to accept your payments, by not accepting them, they're not doing their jobs.

As one post mentioned, they work mainly on commission with a low base salary, so they will do or say just about anything to make that commission.

Whatever you do Shaun, DON'T let them make automated withdrawals and DON'T send them post-dated cheques. If you do that, then you are committing yourself to set payments, but if your financial situation changes, it will be difficult to reverse automated withdrawals or cancel post-dated cheques. They'll also have it on record that you made a committment to pay a certain amount and you are breaking that committment, so don't dig that hole for yourself, just send them a money order each month and do the best you can without starving yourself.

Good luck!

Masy: I apretiate the reply. I can afford to do a set price per month as my job does pay regularly and my financial situation is not about to change drastically anytime soon. Other then being commited to a certain number of payments, is their anything wrong with doing automatic withdrawl with a creditor?