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South Dakota .NET User Group

I Hate Linux

And you want me to pay my bills ACS Education?

In these times of a difficult economy and people struggling to make ends meat and pay their bills, its refreshing to see some companies offer options to current and future customers, be it car companies that will make your payments for you for a time, or even let you return your car if you lose your job, or credit card companies that take out advertisements, asking for you to call them if you are unable to pay your bills to them.

It seems though that at least one student loan company (ACS Education) doesn’t know how to come off so nice (sounding), today I received an email from one of the companies that owns some of my student loans which began:

Don't Let Your Student Loan Become a Credit Nightmare!

According to our records, you have already started repayment on your student loan. We wanted to let you know that we are always here to assist you, however possible, to successfully complete the repayment of your loan.

Being one of the largest servicers of student loans, we see first hand what happens to borrowers who default when they do not make their loan payments, or do not make arrangements for a temporary payment suspension. Borrowers who ultimately default on their student loans, risk their financial future and their ability to purchase a car, a home or anything else on credit. Allowing your loan to default can result in a series of very serious and unfavorable events:

  • You can be sued to recover the entire amount of the loan plus collection expenses
  • Your default status will be reported to every major credit bureau having a detrimental impact on your credit rating and your ability to borrow in the future
  • Holds may be placed on your college records
  • Your federal and state income tax returns may be withheld
  • Your wages may be garnished
  • You may become ineligible to receive any additional federal student financial aid
  • You may be charged attorney fees and other collection costs

Although we will make every attempt to contact you by both mail and telephone to inform you of your payment options, you must take action to avoid default of your loan(s). If you want to make a payment right now, click here.

If you are having trouble paying your loan...

Please remember, if you are having trouble, you still have options. However, you have to act quickly! Every minute you delay can have an adverse effect on your credit rating.

<lengthy explanation of payment plans removed>

And don't forget that you must repay your loan even if you are dissatisfied with the education that you received, are unable to find employment after your graduation, or did not complete your educational program.


Such a shame that in times people are struggling so, one company takes such a firm hand and sending bulk email to try to scare current loan holders into paying their bills.

This is doubly surprising as student loan companies have something going for them that credit card companies generally do not... bankruptcy law being on their side.

To quote the Department of Education:

Effective October 8, 1998, your obligation to repay Title IV, HEA student loan and grant liabilities can no longer be canceled (discharged) due to bankruptcy, unless you can successfully prove that repayment of the debt would cause "undue hardship" as defined by case law in your jurisdiction.

If you ever are bored, bring up this subject to a bankruptcy attorney and see how many times they’ve seen student loans discharged.

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