Pay Defaulted Student Loans
Defaulted student loans have serious consequences for an individual as they are not allowed to be discharged in bankruptcy court like other debts. The only exclusions to this rule is if a person either dies or becomes permanently disabled. Even private student loans are not dischargeable even though they are very similar to personal loans. But, if the situation arises, how does a person know whom to pay when various collection companies are calling and sending letters? The following provides some information about pay defaulted student loans.
Instructions
1. Look through your student loan information or files to determine if your defaulted loans are private, federal or both. Skim over letters and look for wording, such as "FFELP" or "signature." FFELP are federal loans through the government. Signature loans are private educational loans that are backed by banks or other private lenders. Generally, companies like Sallie Mae and American Educational Services are the servicers of the loans. They are the caretakers so to speak, for the government and banks.
2. Take care of federal defaulted student loans by either calling the U.S. Department of Education (ED.gov) or by mailing in a normal payment to the loan holder's address. Visiting ED.gov will also allow you to retrieve the mailing address of the loan holder to pay defaulted student loans by mail.
3. If the servicer of the loans is private or if you have a signature loan, write a letter to the servicer that previously handled your defaulted student loans. Include your name and account number that pertains to your debt. Ask your servicer who the guarantor is for the loans. The guarantor gave you the money. Sometimes a servicer also lends money, so don't be surprised if you get a letter back that states that. Explain your financial situation as to why you defaulted on the student loans. Tell the lender that you want to start paying the debt, but do not know whom to pay because of the various companies that are contacting you. Include any other information that you deem important. Mail the letter certified by receipt so that you have proof of correspondence with the lender.
4. Contact the guarantor to make payment arrangements on defaulted student loans if the servicer does not handle your accounts anymore.
Tags: defaulted student loans, loans private, student loans, student loans, defaulted student, defaulted student