Defaulted Student Loans
Date: Mon, 08/24/2009 - 22:12
Just hang in there. Soaplady will soon be here to clear your dou
Just hang in there. Soaplady will soon be here to clear your doubts
Why cant you rehab them? All federal loans are eligible for reh
Why cant you rehab them? All federal loans are eligible for rehab.
Settlement on student loans are available. However they do not settle for pennies on the dollar like other debts. Normally they will waive some to all of the collection fees but not pricipal or interest....and they will 1099 for the settlement amount.
Im in default Please help!!!
This question is for the Soap Lady or anyone with advanced knowledge. I am in default on my student loans and each loan appears on my credit report seperately. My first question is twofold...can I consolidate, being that I am in default, and if so, will the one consolidated entry on my credit report affect my credit score negitavely or positively? Second (and more important) question, my principal started our at $26,000 and has ballooned to almost $60,000....am I able to negotiate the balance back down to the principal $26K and establish a payment plan?
Quote: My first question is twofold...can I consolidate, being t
Quote:
My first question is twofold...can I consolidate, being that I am in default, and if so, will the one consolidated entry on my credit report affect my credit score negitavely or positively? |
Are these federa or private loans? This all applies to federal defaults.
Yes you can consolidate. However neither of your two negative default tradelines with go away until 7 years past your default. The new tradeline from your consolidating lender will be positive but do not expect your scores to immediately rise. I recommend the Direct Loan Consolidation Loan program. (see the sticky section)
Quote:
Second (and more important) question, my principal started our at $26,000 and has ballooned to almost $60,000....am I able to negotiate the balance back down to the principal $26K and establish a payment plan? |
No. Even settlements will not remove all the interest...usually some to all of the collection fees.