I have a very old student loan (1990 and 1993) that is being serviced through Van Ru and the DOE. The fees and interest and penalties are almost as high as the amount loaned. They got a judgment and have garnished my wages for the last 3 years. I now want to purchase a home but have this outrageous debt that prevents me. How do I renegotiate with them unless I have some significant portion of the $70K I owe them? I am willing to pay more per month and get this paid off in 5 years but don't want to keep paying their old interest or fees first. Help!

You have to try to negotiate with them, but they have the upper hand. Not sure what luck you will have.

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Originally Posted by ScottGem

You have to try to negotiate with them, but they have the upper hand. Not sure what luck you will have.

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This I knew but was wondering if there was any practical advice I could employ (ie from someone with experience dealing with this issue).

The judgment they obtain, did they follow proper proceduce?

Did you defend yourself against this action?

Did you file notice of intend to defend their action against you?

Was this sold to a debt collector?

If so, your only recourse will be to pay them asap.