very old defaulted student loans - settlements

[studentls]

Hi,
This is my first posting. According to Equifax, I have no existing credit report (no negative or positive listings.) I live outside of the US and have not applied or used any credit in over 14 years. I am finally able to fulfill my moral obligation to repay my defaulted student loans. This guilty has really been bothering me for years.

For the student loans, I actually owe over $72000 with interest rates varying from 5.9% to 9%. The original principal for these 10 loans was $34000. Below is a listing of my very poor credit history from my TRW credit report dated from a Sept. 1996. I had 10 listings on my credit report for defaulted or unpaid student loans. These listings were described as open from dates 06/88 - 01/93. They were listed as being (7) in default as of 04/94 (3) seriously past due from 12/93 - 9/94.

I also had 3 listings on my credit report for unpaid credit card bills reported as being seriously past due and written off as a loss from 01/90 - 10/90. The amounts written off are $297, $1939 and high balance $4912 with a charge off of $300. The last listing is for credit extension balance $4271; this listing was seriously past due and referred to a credit agency as of 11/91.

Presently my student loans are with:
7 with GS - USA Funds Guarantee Services - collection agency
2 with US Dept of Ed
1 private organization

1)I am trying to figure if I should try to negotiate settlements with them and try to figure out how to borrow money to pay the lump sum. Have any of you, negotiated settlements and would you share what reduction (percentage) you negotitated?

2)Or should I start paying on the loans and bear all the interest and charges for eternity! When I called GS, they suggested the William D Ford program but I will be paying forever.

3) If I do arrange a settlement, can they sue me for the original amount?

4) If I do a settlement or start repaying, will negative credit information reappear on my credit report.

I do not plan on using any credit in the USA for the next 5-7 years.

I would appreciate your comments.

[melissadas]

Don't do anything till your hear from one of the credit experts here. It is my understanding that some ofthese are past the sol and some should be deleted due to transfer to another CA. I would ask some one like Sisflomi and see if she can help you with this. Good Luck

[kb9tbq]

Utility and Credit Card accounts should be past SOL - you should not have to pay the credit card account back,

Utilities are different, even though the account may be out of SOL - you may be held accountable if you ever want utility service in your name again for that particular state.

Also - we do need to know what state you are from - if you update your profile that would be appricaited.

Student loans are a different animal - there is no SOL on student loans. So if you contact them back and negotiate for settlement it is very important that you get it in writing!

That they will consider the settlement paid in full and will not sell the debt or try to collect on the difference in what was due and what they accepted for settlement. Must be on their letter head paper and signed & delivered to you before you make any payment on this account.

[studentls]

Hello,
Thanks for the suggestions.
I did not fill in the profile because:
My last address in the USA was in Arizona, but I received the student loans in Illinois in 85 and in AZ in 88-89.

I have not been able to receive a recent credit report on-line because all 3 CRAs cannot validate the authentication process. They all suggest ordering it by regular mail. Since I do not have an address in the USA, I would have to ask a friend to use their address. Will my creditors have access to my friend's address and therefore start harrassing them to try to collect? Or is my address confidential? When I start negotiating with the USA Funds & Dept of Ed, I will rent a box from Mail Boxes or should I just pay now (each overseas shipping costs over $25.)

If anyone has any info on their settlement negotations with defaulted loans, I would greatly appreciate it. Please send a private mail if you do not want to post.

Thanks again for your help.

[dan12909]

well you could try rehab on the loans and then they will be out of default if you make 12 ontime payments

[kb9tbq]

Ok - what you should do is put in just a notation that you are not currently in US. :-) That way others have a heads that you case is a bit complicated here.

Ok, I am from Illinois - For medical & credit cards the SOL is 5 years.

Sign over power of attorney to your friend - and then your friend could then obtain your credit report by providing a copy of this as well as their photo ID and contact information. They can obtain your credit report but this is what is needed.

I do have a feeling that as soon as your friend orders credit report / and provides their address - the CRA will instantly update the credit report to reflect their address, unless he gives an address for you. That is complicated - I am interested in this and will ask some questions and get back to you. Today is actually going to be a busy day - so please hold tight.

You may have to obtain a mail box - just so creditors zero in on that instead of your friend, still with you out of country there is really nothing they can do to collect from my understanding.

Curious question would be how long are you out of the country?

Are you planning to come back to the state where you have the Utility Bill?

[studentls]

Thank you both for your suggestions.

Financially, I think rehab is not the best way for me because it will just prolong the payments and interest forever. If I am able to settle for an amount which is closer to the original loan amounts (around $33000) and then take a new loan to pay the lesser amount.

I have updated my profile.

Will wait for more feedback concerning friend's address and CRAs. Most likely a mail box is the best solution.

I have been out of the US for over 14 yrs. I have no plans to move back. But I worked in the States for over 13 yrs and to eventually apply for retirement benefits, I will have to be in contact with the US govt. I would rather deal with this situation now rather than when I am 70 and find that they garnish my SS checks.

I do not owe any utility bills.

Thank you again for yr feedback.

[kb9tbq]

I checked on ordering credit report, what you can do is order from where you are - just send them by mail your request with past and prior addresses and proof of your idenity.

Otherwise if your friend obtains this, then they will need your past and new addresses, as well as a noterized authorization for him to order your credit report on your behalf.

You can supply them with your new address that you have now. Not much that any collection agency can do to collect with you out of the US on this matter.

The CRA will definitely need:

Social Security Number
Date Of Birth
Full Name
Past Addresses you have lived at
New Address where you are now.

Should be do-able for you.

You may after receiving copy of your credit report - use the address supplied for the Student Loan company - write them a letter explaining that you want to settle this matter - and would appriciate them returning confirmation if your offer is acceptable. I know that the older the debt is the less you can settle for. So this might be acceptable to ask for.