How To fight the Collection fee after student debt changes collection agencies?

I’ve had a long, odd history with student debt. First I put my debt into deferment while I worked to get jobs.

But after a few changes in location, my debt collectors lost me. So the debt came out of deferment and I wasn’t aware. But that is OK.

But I got notice from ASA my entire debt was in default. That made me upset. So I set up to pay a 10 month plan, made every payment and was suppose to come out of default.

However after the 10 months, they gave me no guidance on who was to take over my debt. They didn’t put me in touch with Navient, and I didn’t even know who Navient was until it was too late and my loans were put in default a 2nd time.

Then and still now, they have said i would have to pay the entire balance including a 18% collection fee which added $4000 to my $27,000 in debt and it made me furious. Over $31,000 now, so in 15 years, my debt went from the $27,000 I borrowed, the $31,000…

Only through taking my tax returns, have I had any communication or payment. Navient bailed on trying to help, and ASA never offers help.

Now this company PCR Pioneer Credit Recovery says they can consolidate my loans, but must include the $4000 added on and have no idea what has transpired in the past.

Insane. Again, I just have to agree or not.

They are sending me the history and promissory notes and are going to reach out to ASA if I email my dispute but I can’t speak to ASA myself.

This has been super hard to deal with and has ruin my credit and taking my tax returns is a very steep price to pay each yeah, over $4000 one year and $5000 another and my wife’s gets taken too.


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Hi @brandonwal79, I am so sorry you are having to deal with all of this.

I’m not sure I completely follow everything that is going on. Do you know if these are private or federal loans? If private, we have a dispute you can file for this:

If these are federal student loans, is the reason you are being asked to consolidate to bring them out of deferment? I’m a little wary of what is going on there but don’t really know enough to say for sure.

Thanks sorry, its quite a bit to follow.

Right now they’re federal loans and in default for 2nd time.
After rehabilitating them, ASA didn’t inform me that navient was my new collection agent and we had moved from when they had address data.

So they got thrown into default in and that is where they sit.

PCR is trying to get me to consolidate to get the balance and extra $3500 in fees out of default.


My understanding is that the benefit of consolidating is that it can bring the debt out of default, but the drawback is that any interest would be capitalized.

Perhaps you can file some kind of complaint with the CFPB saying that you were never informed who your servicer was on your account and that is the reason it fell into default in the first place (it is more accurate to say Navient is the servicer rather than the collector). I don’t have a ton of hope, but that is one option.

Maybe @Dawn_L would have other ideas. I afraid I don’t have any better ideas.

Thanks Thomas,

I don’t have a ton of experience with the specifics but I’m understanding the run around and I would like to be more involved.

Please reach out to me if you’d like some help organizing and replying, admin etc. I do for a lot of Facebook groups and am a youtuber among other things.


Is this possible with debt directly owed to a school. I failed out of school because of some personal reasons and the school has sent it to a collection agency and continues to charge this fee monthly.

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Hi @sapphirerose, if this is basically an unpaid bill that you owe the school, sometimes called an “unpaid tuition receipt,” and you are being hounded by a debt collector about it, then I think our dispute any debt in collections tool would be an appropriate response:

I can’t guarantee what the result will be, but it won’t hurt to dispute it.

You could also try to work something out directly with the school. Maybe they would accept a settlement for a dramatically lower amount? A lot of schools are hurting right now so the thought that they could get some money quickly might be attractive to them, even if it is a lower amount. Again it is worth a try, but I don’t know what the results will be.

I tried to talk to the school about the fees and they just said the state said they could charge them but couldn’t give me any proof as to why they could do that after sending it to a collection agency.

Hi there, I think what Thomas has mentioned is right. File a complaint with the CFPB. I would also make one with your state AG. If you file a complaint against the servicer with the Department of Ed , for neglecting to do their job as a servicer, that goes on their record. And lastly, I would try to reach out to an Ombudsman to see if they have any way to help by investigating this. I do not find them to always be very useful, but the more ways you try and alert folks to this the better.

do you need help writing any of these statements? if so, let us know and we will get someone to support you.



Thank you. Yes I’m very overwhelmed with this. 1. Pioneer sent me requested documents on my loan progress, but it only went back 3 years, which was all after they put in default. So the info leading up to the default, like when Navicat dropped the ball isn’t included. PCR told me once I got this letter and info then I could email them and they would file a complaint with ASA. Seems line a lot of b.s.

So I would like help filing these complaints with CA gov and CFPB. navient even said they did see that ASA didn’t inform me properly. So I asked them to help resolve this in 2016 and they completely failed to do anything.

So I still in default and the ball was passed like 6 times since. So confusing and it seems on purpose.

I have very little info to go on except the document that shows the addition and subtraction of various “fees” and the reduction of my balance due to levying my federal tax returns each year. B.s.


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You are doing some great stuff. I get these emails and it’s just ridiculous that the US department of Ed just screws people over. Ugh…

I have unsubsidized federal loans on default for 2nd time as we have discussed. You gave me some things I need to do, still though its a lot to think about.

However we got a house to rent with lower credit score so we are very happy. Now I have at least a year to get this shit off my record.

Do you know if the Univerisy of Wisconsin system did things wrong so I can do the DTR? specifically LaCrosse and Whitewater from 97-2002.

I’d be happy to join a call if its helpful for me of if I can ever share my stupid story to others to help them prevent going into default or whatever.

Brandon w