I currently own a townhome with a balance of $70k and it is worth about $150k. My monthly payments are about $430 a month at 4.5% interest. My student loans are about 84k at 5.5% interest. I am considering refinancing my home which will bring me to a 3.75% interest and taking out a HELOC of about $40k. I would like to know your thoughts if I should take out a HELOC to pay off 40k of my student loans? I have been aggressively paying my student loans should be done in 3 years.
Last post by CajunPete - June 17, 2020, 11:58:11 pm
Hello unfortunate consolidators,
I am a victim of the Spousal Student Loan Consolidation. I foolishly consolidated my student loans with me ex-wife. We divorced in 2013 and our loan has gone into default because she stopped sending in the forbearance paperwork and had the address changed for all of the communication from Fed Direct to go to her address as I was working out of the country trying to raise the entire amount of my loan and pay it off in one lump sum.
She has since remarried and is untouchable. I am the "primary" borrower on our loan. She does not work and her husband pays all of their bills. Getting a judgement against her would be pointless because she does to have any wages to garnish.She refuses to take any responsibility for any of the loan debt. Her husband buys everything in his name. He bought their house and cars in his name, then adds he name to the deed/titles later. They live in a state that protects their homestead from any time of collection by debtors.
The political climate might be ripe to finally push the government to allow the break-up of these spousal consolidations.
Once I gather the information, I propose to present to the US Senate Committee on Health, Education, Labor, and Pensions, as well as the US House Committee on Education and Labor. As you probably know the issue of Student Loan Debt has come up during this years Presidential campaign, especially during the Democratic Presidential Primaries. Perhaps we have time to resurrect the issue before the elections in November.
I ask that you please contact me if you are in a difficult situation due to Spousal Consolidation of Student Loans or that you contact someone that you might know that is having difficulties. I also ask that you please write a letter to both your US Senator and Congressman regarding the issue. They all have simple forms on their respective websites that makes contacting them quick and easy. I hope to hear from many of you soon.
Last post by ianyu123 - June 04, 2020, 09:09:32 pm
Any leads on how to approach and what exact language to use in the letter of the agreement. Should I just repeat the original wording? And if they say now what are my options, and possible consequences for each option? Also, how do I make sure that the original creditor (Wells Fargo) still truly owns the debt and it was not sold to a collector?
Last post by ianyu123 - June 04, 2020, 07:09:27 pm
I was wondering if you can comment/advise on this:
Wells Fargo responded and wrote that they are ready to settle my loan by me paying the lump sum and wrote also:
"In accepting this settlement, we intend to discontinue collections, Upon receipt of valid funds, we will update our records to indicate that the account is settled, including in most circumstances reporting to consumer reporting agencies this account was settled and charged off for less than the full balance. Your payment(s) are confirmation of this arrangement."
My letter to them had this text in it:
Dear Collection Specialist:
I am writing this letter in response to your recent correspondence related to the account number I referenced in the subject line above. I am considering the possibility of settling this debt.
I accept no responsibility for ownership of this debt. However, I'm willing to compromise. I can offer a significant settlement amount in exchange for the following:
You agree, in writing, to designate the account as "payment in full" once you are in receipt of the agreed upon payment amount. The account will not be designated as a "paid collection" or "settled account." You agree, in writing, to completely remove any and all references to this account from all credit bureaus to which you and all debt collectors you used in connection with my account report.
I am willing to pay the amount of $8,036.54 as per your letter to me dated 5/6/20 is an available settlement option. I am willing to pay $8,036.54 as settlement for this debt in exchange for your agreement to remove all information regarding this debt from all credit reporting agencies to which you and all debt collectors you used in connection with my account report within fifteen calendar days of receipt of payment.
When I am in receipt of a signed agreement with the aforementioned terms from an authorized representative on your company letterhead, I will pay $xxx via your preferred payment method, including cashier's check/wire transfer/money order.