Defaulted Student Loan Question?
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I have a defaulted loan.
It is over 10 years old
I contacted them and made a settlement
I paid the settlement
I then noticed a little part that says “If your account has been reduced by offset of any funds owed you by the federal bovernment, this settlement offer may be rescinded, and you will be required to pay the amount of any reduction caused by a reversal of that offset which is reported to us in the future.”
I have been having my tax returns withheld to pay the student loans which I believe would fall under that paragraph.
I called and they said that they are going to first send a letter to have the non-negotiated part deleted and then send a letter to me saying I am paid in full. I DID NOT mention the fact that I have had my tax returns garnished to pay the loan.
Should I worry that they are going to enforce me to pay the rest of the loan, or am I free and clear now.
If they do send me a release letter, and then later want to pay the non-negotiated part because my Taxes were garnished… will I have an obligation to pay (even though I have the release letter)?
Hope this question makes sense 
June 23rd, 2010 at 1:32 am
Seems as if you’re in a world of hurt. I recommend you to go and file for Bankruptcy (Chapter 7 if possible) to erase your debt. If that doesn’t work then I have an Attorney that could help you out.
Law Offices of :
Levi Reuben Uku
213-725-3308
He is very affordable and specializes on cases such as yours. He helped me out of a similar situation.
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June 23rd, 2010 at 6:41 pm
If you have a release letter in hand, and they attempt to collect the remainder of the debt, you will have the evidence you need to make them stop. I wouldn’t worry about it unless they try to put you back into collections. If they do, consult an atty with copies of all of your payments and the release letter.
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