In 1986 I took out two student loans. One Gsl and one ssl from educaid in Seattle Wa. I had a third loan at that time as well. As life would have it I ended up divorced and paying way more in child support than any job I could find would cover. Let alone meet student loan obligations. All three loans went to default and were turned over to the US Treasury directly for collection and at least one of the loans were turned over to the IRS offset program...but child support took my tax returns most all years. With the arrangements made with the treasury, I managed to pay off the first loan in full. Upon satisfying that first loan obligation, the Treasury turned over the remaining two loans to Chase Student loans for collection which I managed to maintain for a few more years until I once again lost another job and fell behind. We did a forbearance and I caught up.Then I lost that job too!(Outsourcing and Downsizing don't ya know!) . fell behind again. But having noticed a significant increase in intrest due to the original forebearance, I chose to directly pay up the loan after finding another job as quickly as possible to the tune of $100 - $200 per week! (My feeble attempt at jumping ahead of any more interest). With just $300 more in gurilla payments I would have been caught up and current on the loan payments. Chase turned it over to American Student Loan Services. They increased the loan obligations and monthly payment amounts with their notification of control over the loans. I requested written validation according to requierments set forth in the FDCPA. And, I asked to be contacted only by mail all of which they ignored. Instead, they gave the loans back to the original lender. Educaid.Now, My question....Understanding that the original loans were Garanteed and not private. I can understand Educaid releasing its original interest in these debts to the treasury for collections releiving its self of any further obligations and their loan insurers paid (I would assume Its guarentee has been satisfied.) I can understand the treasury transferring the loans to ONE private collector. In this Chase student loans. ( I must postulate the possibility of loan satisifcation on the part of treasury at this point. ( they gave up the loan. The treasury is no longer interested, the guarentee has been met). But this is where I seem to loose further understanding...Chase turns them over to American Student loan services. In what must have been a sell off block of junk loans. I contend that at this point a 4th party administration of the loan no longer has the standing to claim a guarented student loan but merely an unsecured consumer loan. This was my reasoning for requesting validation. My original requests have not been satisfied merely ignored. Now the original lender has the loans back and is threatening an increase intrest rate of 25% if I do not pay off the loan within 18 days. With the loan changing hands so many times...does the original creditor still have standing to collect after all these years. and can I get the loan classified as an unsecured consumer loan? I cannot get any other loan because these loans have given me the worst credit anyone can have. Can I still use the validation tool?
State/Country relating to Question: Ohio
debt validation letter to American Student Loan Services
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1. The original lender has standing to collect on these loans. Through a series of assignments, the loans have come full circle back to the original lender. By the terms of the Loan agreements, these loans were to be payable over a term of years, starting at some point in the future, after your date of graduation, therefore, the Statute of Limitations does not come into play.
2. The loans cannot be classified as unsecured consumer loans because they are strictly student loans and whereas an unsecured consumer loan can be discharged in bankruptcy, student loans cannot be discharged through bankruptcy.
3. You cannot request validation of the loans, but you can request a current outstanding balance or payoff balance.
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