Q: School loan debt being assisted by a company that specializes in removing the debt.
My wife has a private school loan debt that has been sold over and over again to different collection agencies. We hired a company that specializes in acting as the middleman between the collection agencies and us. We pay them a certain amount per month for 3 years and they guarantee to remove the debt. After the 3 year period if the debt is not resolved we get our money back 100%. I see that the debt is no longer on my wife's credit report. Do we have to keep paying this company? We have a contract that states that we can cancel at anytime.
A: I am unfamiliar with companies that offer the service you are talking about. Regardless of the non reporting on the credit report - have you received confirmation that the student loan lender has received payment; do you know the status of the balance of the debt? You need to have more information about the status of the debt before making the decision to cancel the agreement. How long have you been making the payments? I really can't make a recommendation about this with the little information provided. And suggest you be proactive in analyzing what is going on with the company you are dealing with. Are they getting a fee?
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