default payments calculation
Date: Tue, 07/19/2011 - 07:35
So yes, I screwed up and defaulted on my loans. They are large. I've attempted in the past to pay what I could but I was told it would be pointless from the CA and they didnt budge so I didn't pay anything.
I owe about 70K on my gov loans and I am told by the CA the min needed is $500+. That's impossible right now. I am married and he also has large student loans but is currently in school now. I am not working regularly and at most bring home less than $700 a month. With hubby working we are barely making it. I will probably need his income when calculating my payments.
1) Will they take our bills and his student loan payments into account when determining my student loans payment
2) Although I am in default, do I have a choice as to a rehab program or ICR plan or IBR plan?
3)Can I use Direct Loans or do I have to go through the CA?
I owe about 70K on my gov loans and I am told by the CA the min needed is $500+. That's impossible right now. I am married and he also has large student loans but is currently in school now. I am not working regularly and at most bring home less than $700 a month. With hubby working we are barely making it. I will probably need his income when calculating my payments.
1) Will they take our bills and his student loan payments into account when determining my student loans payment
2) Although I am in default, do I have a choice as to a rehab program or ICR plan or IBR plan?
3)Can I use Direct Loans or do I have to go through the CA?
Quote:1) Will they take our bills and his student loan payments
Quote:
1) Will they take our bills and his student loan payments into account when determining my student loans payment |
They will take reasonable bills into consideration. SInce your spouse is in school he should have no payment at this time. Quote:
2) Although I am in default, do I have a choice as to a rehab program or ICR plan or IBR plan? |
Nope...ICR and IBR do not apply to rehab. "Reasonable and affordable" are rehab terms. However with your size balance, what you make think is affordable is probably not reasonable based on your balance.
Quote:
3)Can I use Direct Loans or do I have to go through the CA? |
You can apply directly to Direct Loans. However you do need to be in repayment.
Thank you for your response Soaplady. I've read some info and
Thank you for your response Soaplady.
I've read some info and need some clarification on the following:
1) Based on my balance and default status, in order to be in repayment, rehabing the loan is my only choice. Once I rehab for 9 months, if I am with Direct, I can apply for the ICR or IBR. Correct?
2) If the payment they require is reasonable based on the balance ,but not affordable based on my income and "reasonable bills", will I have any options? ( ie ombuds or repayment amt reconsideration hearings)
I appreciate your help.
Thank you for your response Soaplady. I've read some info and
Thank you for your response Soaplady.
I've read some info and need some clarification on the following:
Quote:
1) Based on my balance and default status, in order to be in repayment, rehabing the loan is my only choice. Once I rehab for 9 months, if I am with Direct, I can apply for the ICR or IBR. Correct? |
Incorrect. At this point in time, you either need to rehab or consolidate. They are two different programs. If you rehab, your loan after loan goes back to Direct Loans after you have made 9 payments. However ICR and IBR are payment plans under the Direct Loan Consolidation Program. You can simply make payments to qualify for the Direct Loan Consolidation.
Quote:
2) If the payment they require is reasonable based on the balance ,but not affordable based on my income and "reasonable bills", will I have any options? ( ie ombuds or repayment amt reconsideration hearings) |
Your interest is $400 per month....paying anything less than that per month would basically set you up for default again. I do not believe rehab is for you. You are better off going directly for a Direct Loan Consolidation.