student loans collections fees after the fact

[bara]

i defaulted, then consolidated with w.t ford, but was in collections after default.Foolishly, i assumed the fees had to be legal.

Question 1: Now, is there anything i can do if i was illegally overcharged? i guess i could sue for the difference---is not there a law agaainst excessive collections for student loans/or any debt?

2:wt ford--anyone have a good/bad pov on them? i get letters from other consolidation programs for low rates. anyone recommend a better program?

maybe its obvious financially i have add, but i am slowly getting it.thank you so much.

[icantstandcras]

You need to be a little more specific about your situation.

The "collection fees" are assessed by collection agencies and not by the Feds. They are, however, legal, and the Feds get a piece if the collection agencies can get you to collect. The fine print on your promissory note says that they can charge "up to 25%" of the balance for collection "costs".

These are just slimey collection agencies after all, so of course they'll automatically assess the maximum amount no matter that their actually cost for mailing one letter to you might be only 37 cents. They are betting that someone will get scared and pay them the free money.

From the looks of it, you've already read my long post in this other forum, but if you haven't, then read this and take my advice to call someone in an office somewhere to beg to get this fixed.

http://debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=432

Have you already entered into a payment agreement that treats the fees as principal? If so, you're probably in a bad spot and owe the money, but get on the phone (follow my instructions) and call and see what you can do. JUST REMEMBER TO BE AS NICE AS POSSIBLE!!! That's one of the advantages of speaking to *educators* instead of bankers or collection agencts. The educators are going to be a lot more right brained and sympathetic to your story. They also have the power to help you immediately.