What's the best way to pay off a Student Loan

[capgirl732]

that's been sent to Collections? I acknowledge that the debt is mine, and I do want to pay it off. But I only get paid twice a month ($1780 Net) and the Collections agency is requesting $2000 up front to even consider a payment plan of $400 a month afterward. I'm using my savings to pay off the last of my credit debt by the end of this month, so this will be the last outstanding debt I have. However, while the monthly $400 payment is possible to budget, the first $2000 is not. Is there a course of action I can take to pay down the debt on more reasonable terms?

[katvaj]

negotiate w/ the collectors...

[working.fool]

Talk to a different debt consolidation company? Borrow from family this one time to pay the bulk amount, then set aside extra money to pay them back as you're paying your loans down.

[danthoms]

The key to this situation is negotiation. Collection agencies may act like they will only take what they are telling you but they want to get paid even worse than you want to pay them. Tell them that x amount of dollars to pay them up front take it or leave it. Every time that they call tell them the same thing and don't budge. Get everything in writing before you pay them a dime too.