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 Posted: Sat Oct 01, 2005 1:07 pm Subject: Default student loan, Going back to school- want federal aid |
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I have decided to join my school again and I am sure that my application will be approved. The problem lies with funds. My credit is not very good. I've lost my last job very recently. Moreover I owe some default student loans. When I contacted a student loan servicing company, they told me that I won't be able to get the federal aid any more. Anyone else here having similar problem? Can anybody suggest me someway so that I can enter my school by next academic session?
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Sophia
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| Posted: Sat Oct 01, 2005 1:20 pm Subject: |
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Default student loans put a stop in getting further federal grants. If you are in default on one student loan, you are not eligible to receive Title IV federal financial aid. The possible options are-
- Pay the loan in full.
- Negotiate with your loan holder. They might suggest you some ways so that you regain your eligibility of receiving federal grants. Sometimes 6 consecutive timely payments are required to get back the worthiness. The amount is settled so that you can afford it easily. But one late payment can divert you from the way, so ensure that you never fail to pay the settled amount.
- Try a consolidation program. See the benefits of student debt consolidation-
http://www.debtconsolidationcare.com/forums/consolidate-studentloan.ht ml
- You can also enter a rehabilitation program. Check the benefits and limitations of rehabilitation program here-
http://www.debtconsolidationcare.com/forums/rehabilitation.html
Feel free to share your problems in the forums in future.
Bryan
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4ubryan
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| Posted: Sat Oct 01, 2005 10:11 pm Subject: |
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One of my friends recently went through this. She was able to negotiate with her loan holder. How long have you been defaulted for?
She had been in default for the last 6 years and it took her almost a year to get out of the default status. They will more than likely require you to make some payments toward this. Once you are out of the default status, you will be eligible to receive aid again. It is important however to get with your loan holder to let them know of your intentions and they can guide you.
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Rhonda28
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| Posted: Mon Oct 03, 2005 8:28 am Subject: |
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| Rhonda28 wrote: | | They will more than likely require you to make some payments toward this. |
I do agree with you Rhonda. Once the lender understands that the borrower is trying to repay the loan, it becomes easier to get more options and facilities during the repayment process.
The person who has tried, at least, to pay his loan back gets some extra privilege while applying for deferment, forbearance or loan cancellation even.
Both rehabilitation and consolidation make you paying portions of your loan, helping you to be in a better position.
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4ubryan
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| Posted: Mon Oct 03, 2005 3:36 pm Subject: |
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I have a few student loans which are default now. I did only two or three payments for these loans immediately after leaving school. Then I left the state and joined a job. More than 5 years are over, nobody contacted me, but suddenly I discovered that my credit report is showing these default loan accounts. I thought the SOL was expired. Anyways, what should I do now? Any idea?
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| Posted: Mon Oct 03, 2005 3:58 pm Subject: |
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| Quote: | | I thought the SOL was expired. |
Federal Student Loans do not have any statute of limitation; you are obliged to pay back the loan through out your life. Federal government can get back the loan amount through wage garnishment even without court order and they are rarely written off in bankruptcy. So it will be wiser to pay them off and get out of the debt.
| Quote: | | what should I do now? Any idea? |
Since your loans are already default, you are not eligible for forbearance or deferment. Hence your options are limited now. You can-
- Try to pay them in full
- Consolidate your loans
- Apply for rehabilitation
You need to pay 6 to 12 installments of agreed amount to your loan holder per month basis to rehabilitate your default loans. The payments should be made within due dates and no lump sum payment instead of multiple installments is allowed at all.
If you opt consolidation, your default loans will be restructured under one loan amount and with lower interest rate. So it will be easy for you to repay the loans very fast. Since it's already late, I think you should try consolidation program to start the repayment process right now.
For any more queries please feel free to ask in the forums.
Bryan
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4ubryan
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| Posted: Mon Oct 10, 2005 2:30 am Subject: |
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this is a very good subject and i received information i was looking for i do have student loans out there but never paid on any of them yet and never completed the courses and now i do want to go back to finish and with this info i now know what i need to do to see if i still qualify for student loans if i haven't paid on them and haven't rec'd notice about them would i just reapply for another?
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debbra47
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| Posted: Fri Oct 14, 2005 10:09 am Subject: |
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debbra47,
If you are already defaulted on your student loans, you won't be able to get further financial aid. Contact your previous loan holders and make your default accounts current so that you regain your eligibility.
I think rehabilitation or consolidation can help you a lot. See the forum discussion here to decide your way-
http://www.debtconsolidationcare.com/forums/avoid-defaults.html
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4ubryan
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