Do I still owe it?

by Shelly
(Atwater, CA)

I co-signed a Sallie Mae student loan for my son a few years back. In May of this year I talked to the collection company they had assigned to the debt and we made an agreement (I still have the email) to settle the debt for $4700. On May 18th, they took the $4700 out of my bank account. On May 24th the money was credited back to my bank account. When I called them up to see why the gentleman who answered the phone said "oh yes I see it was credited back but I don't know why, unfortunately Sallie Mae has taken back your account". I didn't hear from anyone again until I got a letter in the mail from Sallie Mae yesterday telling me what the balance on the account was. My question is - if I have an agreement with a collection company assigned by Sallie Mae and I honor that agreement and they turn around and send the money back - am I still liable for that money since they didn't honor their side?

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Dec 22, 2011
Do I still owe it?
by: Debtcollectionanswers

Yes Shelly. Despite what Sallie Mae did, you still owe the money. Sounds like you may have been the victim of a bureaucratic snafu. Regardless of what happened however, I would contact Sallie Mae right away to discuss your situation and your options for paying off the loan.

As you may know, it's very important that you resolve the student loan debt because as long as it remains unpaid the amount that you owe is increasing due to interest and penalties and eventually, your wages may be garnished or your state or federal tax refunds may be intercepted to get the loan repaid. Also, the unpaid loan is damaging your credit.

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