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 Posted: Thu Feb 01, 2007 10:49 am Subject: student loans in default |
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Does anyone know how I can get back on track with these loans? I set up payment, but they were too high and couldn't keep up. Any suggestions?
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loveshoes23
Joined: 01 Feb 2007
Posts: 1
Debtcc Points: 64
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| Posted: Thu Feb 01, 2007 3:39 pm Subject: |
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Call your lender once again and explain that you are already having problems with the existing plan. Offer them what you can afford and get the arrangement done in writing. The interest rates will go higher on every default. You need to fix up something at the earliest. Have you thought about forbearance?
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mcranberra
Joined: 14 Aug 2006
Posts: 528
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| Posted: Sat Feb 03, 2007 3:33 pm Subject: |
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Loans in default can't be put in forbearance. If your loans are in collections, your best option is to rehabilitate them. There is another thread on rehabilitation in this topic.
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Once you start down the dark path, forever will it dominate your destiny.
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JediMistressAri
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| Posted: Wed Feb 07, 2007 8:26 am Subject: |
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Call the collection agency back and tell them you want to rehabiliate. By law,you are entitled to "reasonable and affordable" payments. After 9 on time monthly payment, the loan can then be sold to a lender and it becomes current. Alternatively, consolidate your loan. The Direct Loan program offers an "income contingent repayment plan" that is geared to income.
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SOAPLADY
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| Posted: Wed Feb 07, 2007 7:04 pm Subject: |
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It's actually 12-15 timely monthly payments, but the rest of your details are right on the money. No pun intended.
_________________
Once you start down the dark path, forever will it dominate your destiny.
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JediMistressAri
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| Posted: Thu Feb 08, 2007 7:44 am Subject: |
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No it is not 12-15 payments to rehab. The laws changed July 1, 2006 and it is now 9 payments to rehab a stafford or PLUS loan. Perkins loans remain at 12 payments.
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SOAPLADY
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