Consolidation after rehabilitation?
Date: Sat, 11/06/2010 - 08:21
Background: In default on around 90k, all federal. I'm finally at a point where I can make the $800 a month rehabilitation payment, but I probably only have enough saved up to make the payment for about a year. Realistically I'll need to be in IBR repayment within about 10-12 months.
My understanding is that to get this completely off my credit report and get into a more favorable repayment plan I should complete the rehabilitation and then immediately consolidate, is that correct?
Second question: The CA person I'm dealing with swears that there won't be any problem selling the loan after rehabilitation because it was a federal loan to start with. I'm confused as to what that has to do with it.
Any advice is much appreciated, thanks!
My understanding is that to get this completely off my credit report and get into a more favorable repayment plan I should complete the rehabilitation and then immediately consolidate, is that correct?
Second question: The CA person I'm dealing with swears that there won't be any problem selling the loan after rehabilitation because it was a federal loan to start with. I'm confused as to what that has to do with it.
Any advice is much appreciated, thanks!
After you have completed the rehabilitation program, its easier
After you have completed the rehabilitation program, its easier to sell the debt to someone else. That means that you may be able to get a lower monthly payment
Yes, the CA person is right. You can sell off the Federal loan e
Yes, the CA person is right. You can sell off the Federal loan easily after rehabilitation.