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Is it possible to go back to school after defaulting on private student loans?

Date: Thu, 07/28/2011 - 17:10
Submitted by tganon123 on Thu, 07/28/2011 - 17:10
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I have several questions and issues that i need addressed but my main question has to do with going back to school after defaulting? I am currently applying to medical school but i recently defaulted on some private student loans. am i essentially ineligible to receive any form of loans and financial assistance?

The collection agency(DCS) that is representing my guarantor is being very mum on my options and how i can go about resolving the issue besides paying in full or putting down a large down payment. both options are impossible for me at this point.

I've been unemployed for quite awhile and i can only come up with a few hundred dollars. at this point i am willing to do anything to get my loans out of the default and be eligible to get some financial assistant towards my medical school education.

anyone else in or have been in similar situation? am i screwed or is there another path to resolving this?


Are you sure these are private loans?? Or are they FFELP loans? DCS is a major collector for federal student loans which include Direct Loans and FFELP loans. Who is the guarantor?

If these are federal you are NOT eligible for any financial aid until you get them out of default.

If they are private, you do qualify for federal aid. However you will not qualify for Grad Plus Loans. Is federal aid enough to pay med school tuition?? Most med students end up borrowing federal and private.


Submitted by SOAPLADY on Thu, 07/28/2011 - 19:57

SOAPLADY

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I believe these were citiassist and gradplus loans with citibank. The guarantor is united guaranty of north carolina. The last time i called the guarantor i was told they cannot do anything for me unless citibank wishes to buy the loan back other than that it is in the hands of the collection agency.

I know these loans cannot be rehabed is consolidation possible and how do i go about it?


Submitted by tganon123 on Sat, 07/30/2011 - 15:57

tganon123

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You have defaulted on a private loan and a federal loan....double whammy. You can consolidate your gradplus with direct loans but you wont qualify for anymore as gradplus loans are credit based. Your citiassist is private and once you default, citibank will not buy it back.

They way you sit right now, all the federal aid that will be available to you will be staffords at about $20k per year and that is after you get your gradplus consolidated and out of default.


Submitted by SOAPLADY on Sat, 07/30/2011 - 19:52

SOAPLADY

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