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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 118722
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I called AES to make a payment on my student 2008 loan which

Customer Question

I called AES to make a payment on my student 2008 loan which was originally with Chase (I made monthly interest payments for 4 1/2 years and regular payment for 2 years to Chase) but in April AES took over loan. I missed several payments recently and when I called AES (first time corresponding with them) I was told loan was in default and given back to Chase. After being on hold 20 minutes I was given a case representative from National Recovery Group. I told the rep I was calling to get loan up to date but she told me loan was charged off, it was a done deal and I should call back in two weeks after shes gotten all the paperwork. Wow, I'd been making paymnets 7 1/2 years now its a done deal but I need to wait two weeks for paperwork to go through, that doesn't sound right to me.
Submitted: 2 years ago.
Category: Legal
Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If you were delinquent, they have a right to report it to the credit bureaus. If it has been charged off and sent to collections, Chase and AES cannot do anything with it, the collections agency has to handle the matter and that means that they can (and will) pursue you for the debt through the collections process, even though the bank has written off the loan. Once NRG gets the information on your loan, you will have to negotiate a payment plan with them on the student loan and if you default on that plan, they can sue you for the loan and seek a judgment. If you make payments on the plan, then NRG would report the debt as being paid on in accordance with the payment plan, which would begin to restore your credit score.
Unfortunately, short of making a payment in full for the loan, it will not get reported as satisfied in full which would then give you the maximum improvement on your credit score.