index page

DCS notified they are collecting.Now what?

Date: Mon, 04/18/2011 - 09:35
Submitted by Stvncl99 on Mon, 04/18/2011 - 09:35
Posts:
Credits:
[Donate]

DCS notified my daughter 3-20 they are collecting on her defaulted student loan (which was co signed by my wife). In phone conversations with DCS they have told my wife and daughter entire amount is due immediately and will not discuss other options. I would like to get back on track with a monthly payment and stay involved to ensure it does not happen again. Any advice?


That's what was agreed to according to the promissory note (payment in full upon default). They always ask for PIF. You may be able to rehab the loan but this entails making higher payments for an extended period of time. Is this a federal loan? SoapLady will be along shortly and will likely have more questions for you and can give you expert advice.


Submitted by OhioGal1 on Mon, 04/18/2011 - 10:28

OhioGal1

( Posts: 5253 | Credits: )


Has to be a private loan if there is a cosignor. Thus no rehab.

Unfortunately with private loans in default, the balance is due in full on demand. There is no provision to "get back on track"...once defaulted, it stays in default until the last penny is paid. They may eventually accept payments but they wont be affordable or easy....and even making payments, they will sue.

Best choice is to borrow funds and get this paid off/settled ASAP. Major damage has been done to both your wifes and daughters credit. A judgment will only make it worse.


Submitted by SOAPLADY on Mon, 04/18/2011 - 16:33

SOAPLADY

( Posts: 17315 | Credits: )