Most often it is seen that both government and private student loan companies hire private collection agencies to collect student loans from the students who have been defaulting on their loans. There is a particular list of collection agencies that are in contract with the government and private student loan companies and are utilized for collecting the student loan defaults. If you have any doubts about the validity of your student loan debts, you must always go for validation of student loan debt. The process of seeking debt validation is very similar to that of debt validation of credit card accounts. Here are some important things that you must know about validation of student loan debt.
Some situations when you must go for debt validation
The major reason why most student borrowers seek a debt validation on their student loan debts is that they do not believe themselves about the validity of the debt. Some such situations when you are doubtful about your debts are:
- Passed the statute of limitations: Most federal student loans do not have statute of limitations but all private student loans follow an SOL. Though it varies from state to state, you must check the SOL in your state in order to know whether or not the debt is valid.
- You’re unaware of that particular debt: If a collection agency approaches you for a particular debt and you’re not aware of that student loan debt, you might as well ask for a debt validation.
- The amount of the debt is too high to repay: If you’re charged for any amount that is outrageously high, you must first inquire about the validation of the student loan debt. A high debt amount may mean undue interest rate charged by the collection agency and they may not have the right to do so.
- More than one collection agency contacts you: If you receive calls from more than one collection agency for a particular student loan debt, you must get a validation request from each agency to stay away from any kind of fraud.
A debt validation request – How to file one
You have to submit a letter to the collection agency where you have to request a copy of the deal between the collection agency and the student loan company. You must also demand the original agreement with the lender, which the collection agency should have if the debt is absolutely valid. They must also provide you with a document of the fees, principal amount and interest rates paid to that account.
Therefore, if you’re a student who has been harassed by collection agencies about a particular debt account, go for validation of student loan debt. File a request with the collection agency and get to know the truths and facts related to your debt account.