Student Loan in Collections

[dimplechin]

If you have a loan and they send it to a collection agency for collections, are they still allowed to accept payments for the debt? If not, what steps would someone take after this happens? Any help would be greatly appreciated. Thanks in advance

[kb9tbq]

Is who allowed to accept payments - do you mean if you try to pay directly to the student loan company and not the collection agency?

Yea, if you can - cut the collection agency out of the picture and remove their reporting negotiating with the Original Creditor if you can.

[dimplechin]

Is the original creditor still allowed to collect payments. Sorry, I should have clarified who I was writing about. The OC says they will still take any payments sent to them, but they will nbot take the account out of collections. I'm just not sure if they can collect money if they've sent the account to a collection agency.

[kb9tbq]

Oh, so this one is not willing to cut the collection company out of the picture, too bad.

A collection agency can asign a debt & still deal with the consumer to accept payments - which they are most likely forwarding to the collection agency (they don't care what direction you go, just as long as they see the money). Another thing you want to watch out for / is that the collection agency is updated when you make payments through the creditor what your true balance is on this account, and that you don't somehow get messed up on payments not making it to the collection agency.

Sometimes, if you know a debt is asigned verses sold - you can get the creditor to take payment from you, and accomplish cutting out the collection agency.

If the debt is sold though, then the collection agency owns the debt, and the creditor will no longer be involved in them cases.

Student Loans are not like any other types of accounts, there is no SOL on student loans - meaning they can follow you for the rest of your days trying to get that debt paid. I know there are rare circumstances you might get out, but them cases are far and in between.

[dimplechin]

Thank you for the response.