My Student Loans fell into default years

Sounds like loan #1 is trying to rehab you and loan #2 is going for consolidation. the choice is really yours to make. Whichever way you choose, you probably want to do or start it quickly. What company 2 said is not quite true....you are eligible for up to 3 years of deferment....you have to file for them yearly.

Private loans use the courts for garnishment....thus the garnshment goes by state instead of federal garnishment guidelines which makes the garnishment amount higher.

Here is my thing though. I dont work i have been a stay at home mom for the last 5 years. I will go based on my husbands income. I just wonder what the private loan can do to me, thats whats scaring me because i know we wont be able to afford the 225 payment that the private loan has been getting from my dad. Also the second company said that i can add the other loan to the program they are putting me in but the first company wont give me my account number and info for me to give the second company they keep telling me that the second companies program isnt good and that it will only hurt me in the long run. It just stinks. My sister just did a bankruptcy and discharged her student loans I know she had to jump some hoops and do Undo Harship but i hear those odds are really small. What i guess i'm getting to is i took these out really young and made payments for awhile but then had three kids in four years and fell behind what do you think are my best options. we are very much below the poverty line for a family of 5. I wanted to go back to school (and pay for it out of pocket no more loans for me) to get a good paying job that will actually make working worth it. Since all of our kids are under 5 childcare makes a minimum wage job worthless. Is consolidation really horrible i just dont know. I only considered that option because three years of only paying the interest will make it so i can afford to pay for myself to go back to school and get a degree to get a job. Thanks again for your responses it really helps i have been searching the web for days trying to get some info .

Hi my name is tory and i work for a company called college lending solutions, first off let my start off by saying im sorry for the problems that you have been going thru,secondly here at college lending solutions we are able to get you out of default with in 4 to 6 weeks stopping wage garnishments and tax off sets this will also show on your credit in good status, you will be able to go back to school and qaulify for in school deferment, also when dealing with the collection agency's you are being charge 18.5% in default and penaltys fees, so every dime that you give them will go directly into their pocket while nothing will ever go to your principle and all the while you will still be in default. We have a lender thats willing to give you a second and provide you with a brand new federaly back student loan to pay off your defaulted student loans, you'll still have the original loan amount with out all the collection angency's fees, all we do is take you from being in default to out of default. Well i really hope that this info was helpfull and you know a little bit more about whats available for you , also if you have any questions i can be reached at CONTACT INFORMATION REMOVED PER TOS

Obviously the guy above doesnt know what he is talking about. For starters, the 18.5% fee is charged by your guarantor, not the collection agency. Collection agencies on average earn about an 8% commision on student loans. The law requires that payments be applied to fees first, interest second and principal third. Places like above are simply going to send you a federal consolidation application which will capitalize all those fees into your loan. Federal direct applications are FREE...you do not have to pay companies like the one above to consolidate. What he is telling you about stripping off the collection fees is total BS....your guarantor paid your default claim with interest...there is no way they are writing off the interest and fees. These loans are federally insured...they are not going to take a loss like this yahoo says they will.

Excuse me ma'm but how many people have you gotten out of default? That person really sound like you could use some advise, maybe instead of jumping down my throat maybe you could have given her so of your great wisdom, don't ya think?

I spent 10 year in federal student loan collections where I consolidated and rehabbed probably upwards of 10,000 accounts so excuse me.....I know what I am talking about!! Not to mention all the people I have helped get out of default thru these and other boardsl

Before you hijacked this thread, we were discussing PRIVATE student loans, not federal.