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Will debt collectors accept a voluntary payment or do they have to garnish wages for defaulted student loans?

Brandon Scott

in Student Loans

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Whitney Matthews on April 29, 2018

Initial Response . In most cases, they will accept a voluntary payment. Debt collectors purchase old debts for pennies on the dollar and then try to collect as much of the original the debt as possible. For example, you can buy an outstanding debt of $5,000 for only $500. Anything you charge over $500 is profit for them.. That is why collectors are often so aggressive and sometimes act illegally. If you work outside the agreed sum, make sure that you something in writing that says that the full payment of the debt. This will protect you from having them hound again, and it's going to be a test for the credit bureaus, which will probably report the account incorrectly down the line.. Response options . In the united states, the above answer may be true for private student loans, but not Federally Guaranteed loans. Fed. The guaranteed loans are issued by the federal government approved the collection agencies that they have to follow strict standards. The loans are not purchased by collection agencies. Every loan is "Rehabilitated" or consolidated will be paid a fee to the collection agency for the government. Rehabilitated loans are paid a much higher premium to the collection agency that consolidated.

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