Student Debt in Texas

Nov 092010
 

please make sure i understand this correctly… i think these 2 statements are correct… but i need reassurance.

1.  the CRTP for any debt is 7 years, including federal student loan debt and any unpaid balance due the school.

2.  the SOL for collection/legal action in texas is 4 years.

 

does the 4 year SOL include balances owed to schools?  it is not student loan debt, just a left over balance that was unpaid when i finished school.

the DOFD would be in oct 1998, and there is a CO in may 2002.  neither is on my CR at this time.

 

is it possible for them to attempt to collect, sue, or report to the CRAs a debt that is out of SOL and CRTP?  if i understand texas law, they cannot, but i’m wondering whether there’s some legal framework that allows schools to ignore the SOL and CRTP.  also, is there anything i can inadvertently say or do to reset SOL?

 

if you need more detail based on my specific situation, ask and i’ll add to this.
thanks for your input!

Sending PFD Letters

Jun 062010
 

In a nutshell, have some smaller medical collections, between $21 and $150.00 that I want to PIF. These items are from 2005 and up, most recent might

be 2007. (Stevens Business Services).  I live in NH, the SOL is 3 years for these accounts.

 

The accounts were sent to an outside agency.

 

I want to make sure I do this correctly.

 

Send a DV letter.

 

Wait for response

 

Then send PFD letter.

 

 

I know paying these accounts may not bump my fico up at all, but if I ever need a manual review for something, I suppose the report will look cleaner.

 

Thanks for any advice.

NCO response letter regarding my PFD…

May 282010
 

Not sure what to make of this?

 

Dear  XXXX,

 

We are in reciept of your email date May 23, 2010 supplying additional information regarding the above referenced account.  Please be advised that the above referenced account is closed in our office.  Further inquiry regarding the underlying debt may be directed to SunTrust Bank, 7818 Parham Rd., Mail Code RIC 9394, Richmond, VA.

 

In addition, please be advised that we have contacted the credit bureaus, with which we do business, with our request to delete our listing of the  above referenced account from your credit profile for the social security number we have listed in our records.  Please be advised that NCO Financial Systems, Inc. cannot effect a change to how any other company may have listed the above account on your credit profile.

 

We appreciate the opportunity to respond to your inquiry.

 

Very truly yours,

L**** S******

Vice President, Legal Compliance Dept.

 

Okay, if I understand this correctly:

1) they are removing the NCO collection from CRA’s

2) They gave me the bank address with no Zip.  Should I contact this bank or should I contact my local bank with whom my acct went delinquent with?

3)  Do you think this was sold to another CA?  The sentence that I highlighted makes me wonder…

 

What do you guys think?  TIA!

Income-Based Repayment Option

Mar 112010
 

I have a quick question regarding the new IBR plan and I was hoping someone could help me out with it.

 

I have about $100K in Fed Student Loan (75% subsidized and 25% unsubsidized) currently.  At an average interest rate of about 5%, I’m assuming the interest on the loan will be about $5000/year. 

 

Hypothetically speaking, if I take a job in the public sector making ~$40K/year and choose the IBR option, my monthly student loan payment will be approximately ~$300/month or $3600/year.  So if I’m understanding this correctly, this would mean that my outstanding balance will increase each year, resulting in my owing more than the original amount.  

 

So here’s my question: how does owing more than the original amount affect my credit score?  I read somewhere that it’s going to lower my credit score.  If this is true and I choose to stay in the public sector hoping to have my loan forgiven in 10 years, does this mean that I’ll have poor credit score during those 10 years?  

 

I hope that made sense.  

 

Thanks in advance.

 

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