Concerning the previous post about student loans in default. I originally borrowed $13,000 to partially finance two years of university study. I dropped out of college and defaulted on my loans. By the time I decided to pay, I owed $24,000. Whatever you do, DO NOT let the guarantor re-finance the loan (i.e. USA Funds). By agreeing to pay back your loans on an income contingent program (you can change your repayment plan later to standard or graduated) you can refinance your whole debt with a Direct Loan from the Dept of Education. http://www.ed.gov/offices/OSFAP/DirectLoan/index.html The application is simple, the process is quick, you get a fresh start, your credit improves, the guarantors have no control anymore, the IRS has no control..... the Direct Loan program puts the control back in your hands, no matter how messed up your credit is or however negligent you have been with your student loan obligations. The Department of Education will treat you with respect and dignity. No more guarantor bulls***, now you are dealing with a government agency with all the fair play and reasonableness and lack of private sector greed that characterizes the guaranty agencies. I was paying $77 a month to start on a $24,000 debt. After a few months, when I was financially more solvent and had access to more credit, I changed with a simple phone call to the standard repayment which is about $250 a month on what is now about a $17,000 debt. If you are in default on a student loan, please take advantage of this opportunity. It may be hard at first to take the first step but it will be so worth it.
RE: Direct Loans takes care of I consolidated my loans with the William D. Ford Direct Loan program. That is why when anyone ask a question about defaulted loans on this board, I refer them to the dept of ed which will offer them consolidation or rehabilitation to recover from the agonies of default. I also found it easy, and simple. I do not recommend anyone use the guarantor to consolidate because that would be asking for trouble. roni
RE: Direct Loans takes care of I agree re going with Direct Loans. I'm paying a 6.5% interest rate on loans for a lower principle amount (collection included) than when the loan was first disbursed at 9.00%. And with no record on my credit report either! Marci
RE: Direct Loans takes care of you are lucky about the credit reporting. Have you checked all three? Maybe they didnot default, they wouldnot be on your report then anyway perhaps. roni
RE: Direct Loans takes care of Hi Everyone, You can really pay off your student loans incredibly quick, by getting more of your monthly payments going towards your principle. To do this you have to enroll in a course of study, at least half-time, to qualify for a in-school deferment, and even though, you don't have to pay on your student loans while in deferment, when you do, a substantial portion of your monthly payment, goes towards your principle. I have been paying on my student loans for about four years now, with a forebearance period of about nine months, following an accident, but now that I have an in-school deferment, I noticed that more of my payments are going towards the principle. In part because when you have a deferment, the U.S. government, pays the interest on your subsidized loans and when you continue your payments, more of what you pay, pays down the principle faster. Oh, but those papers to write and exams to study for, take some of the fun, out of seeing your principle shrink, each month, LOL! TommyC
RE: Direct Loans takes care of No, I did default. But I rehabilitated. It's just funny to me that after all this time, I'm paying about the same or a little less principle and FAR less interest than when I first got the loans in college after having been in default for years. I guess that's what a Bush administration and a nice recession does for you.
