Huh? Forbearance on CR?

Discussion in 'Credit Talk' started by glenn, Apr 25, 2001.

  1. glenn

    glenn Member

    USA Group is reporting loans that were in forbearance as being late (they WERE late, but I thought that forbearance would whack them from by CR). Is this correct?

    It seems pretty stupid (and mean) for them to do this, especially since I could have just defaulted and rehabbed by now!

    Does anybody know the policy on this? USAG (now sallie mae) won't budge, so I have 12 lates on my report from being late on one goddamn payment (all of the loans were on one payment).


  2. Concerned

    Concerned Well-Known Member

    Good luck. You are going to need it. I transferred schools and had to get those deferment forms filled out at the beginning of every semester. Well, they would wait until the add/drop period ended before sending it off. By the time it was in the computer at Sallie Mae, it was 2 months into the semester and I was 60 days late. They retroactively collected interest from the Dept of Ed but would not retroactively correct my report. I got a letter from the Dept of Ed basically saying they were in their rights because I was late! I never got anywhere with them. Lexington finally disputed it enough times and it came off. Best of luck to you.
  3. roni

    roni Well-Known Member

    I dont understand that at all. I had lates on my graduate school loans and after the retroactive deferement was applied, my lates were removed.
    My lender was the graduate loan center. You guys got screwed.

  4. Shantel

    Shantel Well-Known Member

    I'm not exactly sure of your circumstances, but, deferrment and foreberance are totally different.

    If you were late (say, 30 days) and you went into foreberance....and they stopped your payments, technically, you ARE still late that last payment before foreberance. And every month you are in foreberance, you are still late.

    I have my student loans through Sallie Mae and have NEVER EVER had a problem with them (unlike some others around this board, I'm sorry to say). I ALSO never paid 30 days late and if it LOOKED like I wasn't going to be able to pay, I called them and had a foreberance in their office BEFORE my payment went 30 days past due.

    I don't know what the answer is...especially if you've called and they won't budge. <shrug> Sorry.
  5. no

    no Guest

    Shantel--You Dont Understand

    You are correct. Forbearance and deferment are too different things.

    Forbearance is a way to delay loan payments when the loans should be in repayment, like you left school and your grace period is up.

    Deferment is for an inschool situation. This is used for someone who is in school fulltime and must delay the repayment of any student loans that were taken out from any other time that they were in school.

    Shantel, It sounds like you were never in a situation where your student loans have entered repayment and you had to file forbearance or deferment as the poster has described above.

    The poster is saying that his older loans went into repayment while he was in school (this happened to me) .

    I had my undergraduate school loans go into repayment each year, while I was in graduate school. It is silly, but you have to defer the payments each calendar year or semester with the lender. At most schools you turn in the form to the registrars office and then they mail the form to your lender. This takes time. The poster is saying that processing time they are holding him late.

    The ombudsmans office told me that they couldnot report the loans late at that time and I was able to get my entire loans situtation cleaned anyway.

    I hope this makes it clearer for you.

  6. Concerned

    Concerned Well-Known Member

    Re: Shantel--You Dont Understa

    Roni nailed it on the head. My school told me they, Sallie Mae, would retroactively remove the lates, but it is up to the lender, and my local Sallie Mae office would not remove the lates. It was very mean-spirited because clearly if I could make the payments while in school I would never have gotten the deferment.

    I later consolidated all my undergrad and grad loans with the Dept of Ed. One consolidated loan was easier to work with in my opinion.
  7. roni

    roni Well-Known Member


    You cant be late on loans while in an in-school status. YOu have to report this violation to the ombudsmans office. If you dont you are just laying down and letting them get away with murder.

    They will try to blow you off b/c you consolidated. But you were not late. Fight, Fight, Fight.


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