Free Financial Advice

I graduated college this past May, and I’m scheduled to begin repaying my student loan come November. I only applied for Financial Aid once, and I got a loan of $5,500. That’s my entire debt. The company handling the loan, Mohela, has been badgering me with offers to consolidate my debt, but they don’t seem to get the hint that this is my only loan, so there’s nothing to consolidate.

I’m going to call them to get this straightened out this week, but I wanted to hear if any of you had any idea why they’re pushing so hard for consolidating when it’s clear I only have one student loan. My only guess could be that they want me to consolidate my student loans with my credit card bills or something like that, but I’m not interested in doing that (for starters, I don’t even own a credit card).

So basically, what I want to know is, how do I tell them firmly to stop bothering me about consolidating, and why would they even be pushing for me to consolidate so much in the first place?

Whats the interest rate on your current loan, and what would be the new interest rate on the new loan.

They may be trying to get you to move up some %. Just stick with your current loan unless you can save money by lowering the interest rate.It’s more than likely a fishing expedition to try and drum up some new business but there is a decent chance that you may save some money if the current rates are lower than your previous. I doubt it though as if you went through the last 5 years without having a consolidation rammed down your throat you’d have to be hiding under a rock!

Give them a call and see what they can do, can’t hurt.

A few years ago I bought a car I couldn’t afford. Long story short, it got repossessed, and I owe the balance of what wasn’t paid at the auction - around $4k plus interest.

They tried to garnish my wages, which I didn’t contest, but they couldn’t as at the time I made less than a certain amount which was allowed by the state.

I haven’t received a letter or phone call from them in about 8 months. The last letter I received stated that they were trying to garnish my wages again, at the same job as before, but I hadn’t worked there in 6 months so they obviously didn’t get that. As I haven’t heard from them since, I wonder what my obligations are?

On a certain level, I want to pay what I owe. I fucked up, I made bad decisions, and it’s my burden to pay the collection agency. However, they haven’t contacted me in 8 months, and I don’t go through any pains to be unreachable. My credit is already ruined, I am not worried about that too much at this point. What are the chances they’ve given up and “written me off”? Will they send me a letter 5 years from now stating that I owe the original balance + 5 years interest? Is it up to me to contact them to make arrangements?

The statue of limitations varies for state to state, but it is usually a couple years. They will keep tacking on interest until you pay. If they don’t collect the debt, it will be recorded as uncollected on your credit report. They can still pursue the debt even after they mark it as uncollected on your credit report.

Go to Annual Credit Report to view your credit report and the collection agencies information.

You may be able to negotiate with them to settle for a lesser amount.