As the economy becomes worst, debt collectors are becoming very aggressive.  If private collection agencies are able to pull this kind of student, imagine what the federal government is doing!  This video is very disturbing.

Get the Confessions of a Rogue Student Loan Collector
and Learn what really goes on behind closed doors.
http://www.FreeStudentLoanStuff.com

Mr. Kay
Blog: http://www.studentloanfundamentals.com

Bankruptcy Attorney Speaks about Student Loan Laws

When you have a bankruptcy attorney talking about why the student loan industry is a total scam. We have some issues. In this country you can bankrupt a gambling debt yet you cannot bankrupt your educational debt.

Student loans puts a new meaning to loan sharking/predatory lending.  The cost of education has sky-rocketed yet the quality has declined.  Collection companies like ours that I am work at is making a killing.  While folks across the nation is struggling.  Just last month alone we have collected over 3 million dollars in student loan balances.  This is considered to be one of our worst month to date.  December is no different – voluntary payments are becoming difficult.  Folks are not paying there student loans. But we have had record numbers of garnishment, litigation, and tax offset requests put in.  I know hundreds of thousands of student loan borrowers are going to get hit with a harsh reality in the next 30-60 days.  God help us all…

Get the Confessions of a Rogue Student Loan Collector
and Learn what really goes on behind closed doors.
http://www.FreeStudentLoanStuff.com

Mr. Kay
Blog: http://www.studentloanfundamentals.com

Credit:
Fred Walker of Austin Bankruptcy Attorney explains how student loans are predatory lending. For more go to http://www.austinbankruptcyattorney.com

Derek Redmond was favored to win the 400m race at the 1992 Barcelona Summer Olympics.  However, disappointment came about 250m from the finish, his hamstring tore.  Redmond hobbled to a halt, and then fell to the ground in pain.

As stretcher bearers made their way over to him, he knew he wanted to finish the race.  He began to hobble along the track, with pain etched upon his face.  Suddenly,  a large man pushed through the crowds, fighting back security.  He was wearing a distinctive T-Shirt that read, “Have you hugged your foot today” and a hat that challenged, “Just Do It.”  The man was his father, Jim Redmond.

“You don’t have to do this,” he told his weeping son.  “Yes I do”, Derek declared.  “Well, then”, said Jim, “We’re going to finish this together”.  Jim wrapped Derek’s arm around his shoulder and helped him hobble to the finish line, Jim let go of his son and he completed the race, with a  standing ovation from the crowd of 65,000.

Mr. Kay – Sometimes life can be very very difficult but you have to find the courage and power to keep going.  Keep pushing and  Keep moving.   Sometimes being 1st isn’t as important as just finishing the race.

YES, The government can legally take what you worked hard for!

What is a Treasury Offset (TOP)?

Under this Treasury Offset Program, the Financial Management Service, a bureau of the US Department of Treasury will offset Federal and/or State payments if a borrower fails to pay their obligation.  While the most common type of Federal payment offset is Federal income tax refunds, several other types, including social security benefit payments, are also eligible for full or partial offset. In other words, if a borrower has an outstanding debt and they have incoming social security benefits, this too can be subjected to the offset.  In addition to defaulted debts held by ED, defaulted loans held by guaranty agencies are also included in the process.

Mr. Kay’s Notes:  With the TOP program the seized amount is considered an involuntary payment meaning the amount will be applied to the balance but will not count towards any voluntarily payment arrangement.   With a treasury offset 80% of the seized amount will be forwarded to the interest and the other 20% will go towards the collection fees.  Remember a major benefit of the rehabilitation payment program is to have your collection fees waived.

“Not knowing the solution, a lot of debtors I talk to give up and surrender their hard earned tax return annually.  I think Dept of Ed wants you to be stuck in this trap so they could suck your money every year.  I’ve seen debtors get their taxes seized, call in the following year to find out the balance is still the same from the year before….”

– Mr. Kay, Rogue Student Loan Collector

Other Federal and State agencies also certify debts for offset, but Department of Ed has historically been responsible for the largest volume of offsets.  As a result, many tax professionals, and even the IRS, will automatically assume that an offset has been requested by the Department of Ed when, in fact, it may have gone to some other Federal or State debt.

State Payments

State payments (e.g., State tax refunds), in addition to Federal payments, may be offset in the Treasury offset program.  Just recently the treasury was requested to offset both Federal and State payments on federal student loans.

States Involved

Alabama                      Missouri

Arizona*                      Montana

Arkansas*                    Nebraska

California*                  New Jersey*

Colorado                     New Mexico

Delaware                    New York

Georgia                       North Carolina*

Hawaii                         Ohio

Idaho                           Oklahoma

Illinois                          Oregon

Indiana*                      Pennsylvania

Iowa**                          Rhode Island**

Kansas*                       South Carolina*

Kentucky                      Utah

Louisiana                     Vermont

Maine*                        Virginia*

Maryland*                  Washington DC*

Massachusetts*          West Virginia*

Minnesota                   Wisconsin*

*Indicates states that also participate in state offset programs.

** Participates in a State offset program, but not for local taxes.

States that do not participate in the Federal offset program, but use a state offset program include: Connecticut, Mississippi, and South Dakota. The following states do not have a personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

What is the purpose of the Treasury offset?

The purpose of a Treasury offset is to recover the amounts for the Federal taxpayers without the cost of litigation fees. It was created to basically recover the unpaid debts arising from federally supported activities, which include student financial assistance.

Since 1986 the Department of Education has referred millions of defaulted student loan debts and grant claims to the Department of Treasury for collection by offsetting against federal and/or state income tax refunds and any other payments authorized by law. The Department of Ed can request that Department of Treasury to arrange an offset to collect any Federal defaulted student loan debt or grant claim.  Once the Department of Education refers a delinquent borrower to the treasury department, these group of debtors are considered to be certified permanently as long as the account is in an active defaulted status (outstanding).

Mr. Kay’s Notes:  Certified permanently means your tax return will continuously be seized until your account is out of collections (Default).  Considering that the collection fees are calculated at 24% of the principle and interest and on top of that your interest is accruing you’ll barely impact the balance.  It’s probably best to get decertified by going a settlement compromise or by the use of the rehabilitation payment program. (Please refer to these sections)

What does it mean if I am certified?

Once Department of Ed certifies a defaulted account for treasury offset, that account will remain certified for the life of the defaulted balance unless it is inactivated by law (e.g. active bankruptcies).  Once certified, borrowers may not avoid offset simply by making voluntary payments.  Borrowers may avoid offset by resolving the account through satisfying their account in full, settlement compromise (Partial pay-offs), completing the rehabilitation payment program, consolidation, or discharge by dispute.  In other words, if a borrower is not disputing the account they would need to either pay the balance in full or bring the account back to a current status.  If you have a valid dispute and you are able to prove that your loan is invalid you will be refunded your tax return.

The most common complaint against collection agencies is that they advise borrowers a treasury offset can be avoided by making payments.  This statement is completely false

Mr. Kay’s Notes:  Contact the IRS most debtors are unaware that in extreme cases you are able to extend your tax filing.  If you time the rehabilitation payment program with the up-coming tax season you’ll be able to regain your tax return again.  Remember the rehabilitation payment program is 9-10 months. (Please refer to the “I want my tax return next year” Section at the bottom)

“Most collectors will not lie to you, but they will twist their words around in their favor.  It’s always best to listen for words such as: Maybe, most likely, possibly, and should.  It’s always best to get a definite answer and if possible it’s best to receive everything they mention is writing.”

– Mr. Kay, Rogue Student Loan Collector

What if I’m not certified for Treasury offsets?

It’s highly recommended that a borrower begins repayment immediately prior to the pre-certification process. Borrowers may avoid the pre-certification process by resolving the account through satisfying their balance in full, settlement compromise (Partial pay-offs), completing the rehabilitation payment program (refer to rehabilitation section), consolidation, or discharge by dispute.  Although sending gratuitous payment (any amount) may possibly help borrowers avoid the pre-certification process it is highly suggested, if making payments, to resolve the account through loan rehabilitation. In other words, if a borrower is not disputing the account they should either pay the balance in full, compromise through a settlement, or bring the account back to a current status.

Mr. Kay’s Notes:  Throughout the years I’ve actually seen an increase in the amounts of account becoming newly certified.  If you are unable to afford a lump sum payment (Settlement), the rehabilitation payment program is your best solution for getting your loan(s) back into good standing.  You can inquire about consolidating your loans but I highly disagree with loan consolidation.  You’ll be consolidating the penalties into your new balance when originally you could have had your fees waived.

—————————————————————————-

Above is a section from the Student Loan Blueprint.  I’ve gone ahead and released a section of our highly acclaimed course, so you can see why it is important to know what can truly happen.  It is December 1st and tax season is 4 months away.  People do not plain to FAIL, they FAIL to plan. – Mr. Kay

Leave me a comment below.

Frequently Asked Questions

• Understanding Student Loans
• Student Loan Repayment Options
• Settlement Options
• Everything About Student Loan Collections
• Garnishment? Get the 411
• Want Your Income Tax Back?
• Default VS Delinquency
• Student Loan Bankruptcy

Live Free and truly learn how to break away from your student loan troubles.

www.StudentLoanBlueprint.com

Sincerely,

Mr. Kay Production Manager

Rogue Student Loan Collector

.

Why should you listen to me?

Why am I releasing this information?