Jessy S asked: I have a defaulted loan.
It is over 10 years old
I contacted them and made a settlement
I paid the settlement
I then noticed a little part that says If your account has been reduced by offset of any funds owed you by the federal bovernment, this settlement offer may be rescinded, and you will be required to pay the amount of any reduction caused by a reversal of that offset which is reported to us in the future.
I have been having my tax returns withheld to pay the student loans which I believe would fall under that paragraph.
I called and they said that they are going to first send a letter to have the non-negotiated part deleted and then send a letter to me saying I am paid in full. I DID NOT mention the fact that I have had my tax returns garnished to pay the loan.
Should I worry that they are going to enforce me to pay the rest of the loan, or am I free and clear now.
If they do send me a release letter, and then later want to pay the non-negotiated part because my Taxes were garnished… will I have an obligation to pay (even though I have the release letter)?
Hope this question makes sense :)
settlement loan
