Student Loans credit report help Sallie Mae, State Tax Lien

[ineedyourhelp]

I've been avoiding my debts for close to 5 years now and decided to finally tackle them. I realize now that student loans do not get discharged in a bankruptcy. I just recently looked at my credit report and found that 5 separate student loans are listed under adverse accounts and have been placed for collection, 1 of them filing a state tax lien on me and 2 others being listed twice with two different balances.

One of the loans that was listed twice was by Sallie Mae. However, the balance for both Sallie Mae listings have a $0 Balance with the remark "Debt being paid through insurance." Does this mean that I don't owe them anything? I'm trying to figure out how much in total I owe in student loans and just wanted to make sure if it was right not to include Sallie Mae in my total.

Also, I was wondering if anyone here has had any experience with state tax liens. I'm planning to move out of state soon and understand that they can eventually garnish my wages. I haven't had a job since I stopped paying over 4 years ago, but I'll be looking for one once I move. When I do find a job, would it be best to call the court where the tax lien was filed to see if they would do installments? I definitely wouldn't be able to pay them in full. As for the other adverse student loans, should I try to work out installments with all of them or should I just work on one loan at a time. I don't imagine myself making too much money wherever I move, just enough to pay rent and eat, but I want to get this whole student loan debt thing over with. Any advice would be appreciated.

[backtoschool]

When you default on your student loans, they get transferred to the guarantor and end up as a separate line item on your credit report. The line you are talking about on your credit report simply means that your loans entered default status, and the issuer got paid by the guarantor. (the govt guarantee agency). But the guarantee agency will still come after you. You still owe the money.

The other problem with defaulting on student loans is that a 25% administrative fee gets added to each loan for collection costs. You can pay the loans separately or you can consolidate them and then pay them, but if you consolidate them, make sure you have ALL your loans consolidated or you will be hit with that 25% administrative fee twice. (this happened to me. )

If you consolidate them with Direct Loans (the federal govt student loan agency) you can go on an income contingent plan and your payments will be manageable, especially if you have no job or get a job that does not pay much.

[ineedyourhelp]

Thanks for you response...

The "last date" reported for the Sallie Mae ones are 04/2006. I was wondering if the gov't guarantee agency would have tried collecting already? or at least reported on my credit report by now. I don't see any other listing involving Sallie Mae. Is there any way to find out who the gov't guarantee agency is to find out how much I owe them? The status listed for both Sallie Mae lines say "Paid or Paying as agreed" so I figured the loans just became an insurance write off for them.

That 25% "administrative fee" is brutal. I didn't know they tacked that on there. After four years of lingering... It seems like more than half of what I owe in student loans is from those ridiculous fees and interest.

Consolidating seems like a better option than just dealing with each student loan one by one... the state tax lien is my first priority so the others would have to wait if I don't consolidate. Although, I'm thinking I can't include the state tax lien if I do end up consolidating my student loans, right?

Would it be better to try and consolidate the loans now even while I don't have a job? or should I just wait until I get a job first to know how much I can pay?

[backtoschool]

The 25% fee is a killer. I have over 100k in student loans and at least half of that is the administrative fee (applied TWICE ) and the interest that accrued when I was in default.

Yes you are definitely in default, student loans default after 270 days of nonpayment.

Student loans often don't report correctly on credit reports. Sallie Mae has definitely gotten paid off by now, but you still owe the money to the guaranty agency.

I definitely think you should consolidate your loans while you are unemployed, since you can put the loans in an income contingent plan and you will have super small payments right now or no payment. After consolidating them all, with direct loans, you can get an unemployment hardship deferment and not pay anything until you get a job.

Direct Loans will track all your loans down by social security number and consolidate them for you, but as I said, you are looking at the 25% admin fee for having defaulted on them.

[ineedyourhelp]

Ouch bro, I feel for you. That's really messed up.

So that means the 25% "administrative fee" is already included in the balances that I see on my credit report, right? Or once I consolidate, then Direct Loans will include a 25% admin fee for each loan that they consolidate?

When Direct Loan tracked down all of your student loans, shouldn't they have found all of them? or was one of them missed and that's why the 25% fee was applied twice to yours?

[backtoschool]

Ouch bro, I feel for you. That's really messed up.

So that means the 25% "administrative fee" is already included in the balances that I see on my credit report, right? Or once I consolidate, then Direct Loans will include a 25% admin fee for each loan that they consolidate?

When Direct Loan tracked down all of your student loans, shouldn't they have found all of them? or was one of them missed and that's why the 25% fee was applied twice to yours?

In my case, they missed a two loans and then had to reconsolidate and that's why the 25% fee was applied twice.

Direct loans at the time didn't have as good a computer system and database as they do now. Now there is a website where you can go to see all your loans (whether they are in default or not) here is the url:

http://www.nslds.ed.gov/nslds_SA/

You have to get a pin number from the gov't to view your info but once you have that you will be able to see ALL your loans and who they are currently with. They were working on this site when I consolidated but it wasn't ready yet.

They will have instructions on the site on how to get a pin number.

And I am a chica not a "bro", but I appreciate someone who can sympathize with my student loan saga.

[ineedyourhelp]

You're a girl! I totally called you a "bro"... I'm such a loserface right now... I'm sorry!

I'm just a little confused now... so Direct Loans charges the 25% administrative fee for consolidating your student loans? or have the 25% administrative fees been attached to each loan already for having gone in default?

Thanks for giving me that site, I'll definitely check it out...

I more than sympathize with your student loan saga, I empathize as well. Hope your day has been going well

[backtoschool]

You're a girl! I totally called you a "bro"... I'm such a loserface right now... I'm sorry!

I'm just a little confused now... so Direct Loans charges the 25% administrative fee for consolidating your student loans? or have the 25% administrative fees been attached to each loan already for having gone in default?

Thanks for giving me that site, I'll definitely check it out...

I more than sympathize with your student loan saga, I empathize as well. Hope your day has been going well

The 25% admin fee happens when you default, but is added when you consolidate because often the loan has been resold so many times that the fee is not showing up in any of the balances yet. Some loan guarantors add the fee right away though but more often than not, the fee gets added when you try to consolidate defaulted student loans.

Loans that are consolidated that are NOT in default do not have the 25% admin fee, only loans that are consolidated that ARE in default have it.

[ineedyourhelp]

backtoschool, you've been more help than you'll know. just wanted to say thank you...

[backtoschool]

backtoschool, you've been more help than you'll know. just wanted to say thank you...

Thanks ineedyourhelp! I just want people to avoid the same stupid mistakes I made if at all possible.