New saga: The VA, student loans, and debt collectors...

[fanaudical]

Oh great PPOT brain trust, I need some input.

A young relative of mine was going to college using a VA tuition benefit through her step-dad. That marriage ended badly a few months ago and the step-dad halted all support as the marriage crumbled and the mom left the home. The divorce got recently finalized with no support decree.

My young relative recently received correspondence from the CBE Group (one of the private debt collection companies sanctioned by the US Dept of Treasury) stating that she owes ~$6k ($2k of which is "fees") and has 3 days to communicate a repayment plan before they start garnishing wages. (She's making minimum wage.) She received no previous notice of this.

Does anybody have experience with this?

From what I can tell, the CBE Group is legit and is contracted by the US govt for various debt collection. I have advised her to find somebody there that can negotiate a direct payoff and kill the fees. She admits the debt is hers to pay but is looking for a way to get the ridiculous fees to disappear. (This apparently got turned over to collections less than 20 days ago.)

Thanks for the help.

[LakeCleElum]

The only to probably avoid the fees would be a direct cash payoff.........Sorry for your story. My daugher is in the same deal......She has loans for $150,000 K + to get 2 masters degrees.......Difference is: They can't garnish as she hasn't been able to get a job in her field(s) in 2 yrs........

[john70t]

There are a lot of layers:
-gov backed securities,
-step-dad signing on the bottom line,
-continuance of veteran rights,
-marriage responsibilities (which continue long afterwards when it comes to CC or mortgage debt)
-3rd party collections with 3 day notice,
-fair collections acts