A debt collector might try to contact you because a creditor thinks you are late in the payments you owe on a debt. When you talk to them, remember that the law gives you certain rights and that it is illegal for a debt collector to harass you or make false allegations.
Ignoring or avoiding a debt collector will not stop the debt collector from contacting you. Rather, avoiding it may cause the debt collector to use other methods to try to collect the debt, such as filing a lawsuit against you. If you think you don't owe that debt, tell the collector.
The CFPB prepared sample letters that you can use to respond to a debt collector trying to collect a debt, along with tips on how to use them. Sample letters can help you obtain information and establish precise rules about any other communication.
Private student loans
If you are contacted by a debt collector regarding a private student loan, you can negotiate or establish a payment plan. Private student loan lenders cannot touch your Social Security, but they can garnish your wages if they win a lawsuit against you in court.
Federal student loans
If you have federal student loans, you may have more options when dealing with a federal student loan collector:
Rehabilitation removes the default note from your credit history, although your late payments prior to default will remain on your credit history.
If you decide to go back to school, you may be eligible for federal student aid again, after making the sixth payment of the nine monthly payments on time.
Even after you've paid off your debt, the debt will still show up on your credit report as a defaulted loan that was paid. You may also be eligible to receive federal student aid again if you decide to study again.
When you speak with a debt collector, make sure you have written documentation about what federal student debt you owe. If you think you never applied for these loans, check the National Student Loan Information System. If the loan does not appear, contact the debt collector and inform them of the problem. Remember that the system only shows your federal student loans, not your private ones.
If a debt collector refuses to offer you an option that you think you may qualify for, ask to speak to the debt collector's Special Assistance Unit. If your problem has not been resolved through the administrator's Special Assistance Unit, you may want to review your options through the Ombudsman Group of the Office of Federal Student Aid in the Department of Education.
Submitted 47 day(s) ago by Jessica777
Submitted 56 day(s) ago by Haris Abbasi