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Soaplady...I need you :) SL in default with NCO

Date: Tue, 04/17/2012 - 16:10
Submitted by nhgrrrl on Tue, 04/17/2012 - 16:10
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My federal student loans just went into default and I just had a message left for me from NCO. Before calling them back, I really need some help with what to say. I'd like to rehab my loan to get it out of default (and not deal with garnishment). My loans are ~55K and I bring home$1100 every two weeks. I do live paycheck to paycheck, but will somehow work out a certain amount to pay the 9 payments (there's absolutely no way I can have some kind of down payment for them...I don't have any money). I'd love to know if there's a calculator somewhere so I can see what is reasonable for the monthly payment so I don't get taken advantage of by the CA. Also, are there words or phrases that I can use so I'm not my own worst enemy? Thanks so much for your help and I'm so glad I found this forum!


Ok...standard payment is 1%...so $550. However you are entitled to "reasonable and affordable" under the Higher Education Act. Affordable based on your income/expenses and reasonable based on your income.
Usually reasonable would require that your interest be covered...so on $55k that would be around $300. You might be able to get away with $250.

As for down payments, they can ask for a down payment but they CANNOT make it condition of a rehab. There is nothing in the Higher Education Act that requires a down payment.


Submitted by SOAPLADY on Tue, 04/17/2012 - 18:17

SOAPLADY

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You are a rock star! Thank you! For being here, but also for answering the same questions all the time :) I have two more. One, is there some kind of online calculator that I can get an idea of expenses I should/shouldn't include (i.e. cable tv) in figuring out my expenses (so I know where they are coming from). Also, I found a website (http://www.studentloanfundamentals.com/2011/02/) and it seems interesting (an inside look to know what to do/say so I'm not taken advantage of). What are your guys' opinion of this guy??? Heard of him before?
nhgrrrl


Submitted by nhgrrrl on Thu, 04/19/2012 - 13:52

nhgrrrl

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There is no calculator...they will simply ask you for your bills...rent/mortgage, utilities, (phone, cable, internet,gas,electric) car payment, car insurance, gas, medical, day care, food. Secondary bills like credit card payments may or may not be taken into account (I once had someone balk cause I hadn't left them enough money to pay their Victoria's Secret account) I used to include misc expenses..toiletries, and those other bits and pieces. Being open and honest and being prepared is your best defense.

As for that website...I have read it. The only person who is benefiting from that site is rouge collector, selling secrets that are NOT secrets.
I am currently writing a student loan blog that gives away the information he charges for.


Submitted by SOAPLADY on Thu, 04/19/2012 - 16:44

SOAPLADY

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