Question:
Basic details: In 1990, I was ahead on payments on one federal and, I am told, three state student loans (I once made a lump sum payment). I then relapsed on alcohol in 1990 after 11 years sober. This was followed by four years of blackout drinking and 13 high-dollar, low-dollar, no-dollar treatment centers across the country (admitted to a local center 24 times; stays varied from 20 minutes to 6 weeks).

These were interspersed with stints in missions, Salvation Armies, detox centers, ERs, etc. In 1993, I came out of 13-day coma after drinking antifreeze, my only possession the plastic diaper I was wearing. Got shirt, pants, and shoes from a friend, discharged from the hospital, and drank on the streets for another year and a half. Couldn't get into the mission because I could not prove I was a citizen (no ID, border town). Got sober through a 12-step recovery program 11/93 and have had nothing stronger than aspirin, caffeine, and nicotine since.

I do not have any records of my loans (or much else during that time) and was surprised to learn about the state loans when I called 800-4-FED-AID last week. For some time I got letters from DOE and the state agency, but I soon quit opening them. Letters form the state agency subsequently ceased; those from DOE continued sporadically. I have vague memories of trying to keep one or more loans alive during the early 1990s.

I think I may have been approved for some kind of temporary deferment, revised repayment schedule, or something like that in '92 or '93, but I'm not sure. If so, this was a last gasp attempt to stay afloat and drunk at the same time. I know I didn't follow through on any commitments I may have made. I called the state people yesterday. They said I defaulted in 1994 and that my loans were turned over to Van Ru that same year (total now: $16,538); my other loan is held by a company called NCO ($9896.). I asked them to send me documentation; they said they could send me copies of the promissory notes, but that this would take "a while" because they are archived.

Since sobering up, I have taken care of the IRS (they were most accomodating). I also want to clear up my student loans, but I don't want to be misled. I don't trust collection agencies to rise above the horror stories I read in these posts and elsewhere (interest and "fees" that quadruple the principal and make repayment impossible for the average Joe). One possibility: A low-interest loan to get these shysters off my back. Anyone had experience with that? Another: The National Health Service Corps has a program to repay student loans through service in underserved areas, but the applicant can't be in default on his/her loan (I would qualify otherwise). Is it true that I can get my loans out of default by making a set number of agreed upon payments? I am looking for some clear-eyed direction before I contact Van RU and NCO and agree to anything they propose. I am not looking for sympathy or moralizing about deadbeats and responsibility. Save the moralizing for the terrorists.

Answer:
I do not have any records of my loans (or much else during that time) and was surprised to learn about the state loans when I called 800-4-FED-AID last week.

Your promissory notes still exist; you know that already. Your bank records still exist somewhere, and if you can remember where your checking account was, you can find out what happened to that bank and where the records are now. You'll probably have to pay $20 - $30 per hour for research, plus so much for each document (monthly statement or check).

You should, of course, insist on an itemized documentation of the amounts claimed to be owed. State loans are governed by state law, and the department that granted or approved the loans should be able to tell you what amounts are legitimate. I would be suspicious of amounts claimed by collection agencies that failed to collect. They earn their money by actually collecting from you, and they did not succeed in doing so. You could also go back to the state agency and say you were incompetent to respond during your time of difficulty, so can the loans be reassigned to the state?