ok i applied for rehab, but my monthly payments would be over $500 a month. i cant really swing that right now. if im looking to clear up my credit would it be better for me to just let them take the garnishment out for another year or two till im more financially stable to put it into rehab? or just go through the dept of ed now and let go to collection paid status? they definitly will not remove the default status even through consolidation? thanks for your help on this !!
RE: roni..one more student loa Your payment does not have to be that high. Did the agency tell you that or are you just assuming that from your billing statements? roni
RE: roni..one more student loa the originator told me that once they tack on the 18.5% that my payment will be that high. i want to clear this up, but thats just tooo high!
RE: roni..one more student loa originator? You mean the school. Listen you have to tell me what kind of loan this is again so I can help you. Perkins or Stafford. Sorry. roni
RE: roni..one more student loa stafford...when i say originator i mean the place who has my loan all along (not sure if its correct name) i have a total of 36000 all in stafford loans.
RE: roni..one more student loa OK, so since your loan defaulted your loan i now with a guarantor agency. You have to send them payments. The original lender may have to approve the set amount to rehabilitate it. ONce you consolidate you can not rehabilitate. How long before the 7 years runs out. When did the loan go into default. roni
RE: roni..one more student loa Same as me. That is a long time. I consolidated though because i needed to get the defaults off before commissioning in to the army reserves. I would try to get the people to lower the payment. Tell them you can honestly only afford $300/mo now but once the rehab is over you will up to the full payment. You see once you defaulted you lost all your deferment or forbearance options. You can't ask for lesser payments. BUT If you consolidate you get very low payments. They automatically put you on the Pay forever plan because you once defaulted. You can always pay more. My expected payment is just $150 for or $100K in student loans. I pay more but leave my payment that low. It will help my debt ratios when mortgage time comes around. roni
the choice is yours. I consolidated because I can prove my default was a paperwork error. Even though the credit bureau wont remove it. I plan to use this to get my mortgage. I couldnot get any credit with the defaults outstanding. Also the army was breathing down my back. But If you have other recent credit problems dont worry. You have to wait 7 years anyway. Consolidate. Having any charge offs on your report will hurt your chances of getting credit. You can build credit the subprime way despite the consolidated student loans. roni
RE: roni..one more student loa Your montly payment should only be 1.5% of your loan. If that is too high, you can request for a hardship reduction for the monthly payment of the loan. Call the guarantor and explain the situation, and they will have the collection agency (if it is not being handled by the guarantor) send you a hardship financial statement form to fill out. I did this on a loan and reduced my montly payment below the 1.5% by 40% Marci
RE: roni..one more student loa Actually, the student loan servicer must allow you a repayment plan based on income under their "basic program agreement" with the Dept of Education even if you had a default. The problem is, the rehabilitation program doesn't require them to fix your credit if you don't enter into a 10-year repayment plan. So your choice is, enter a repayment plan based on income to become current upon your first payment (but let your credit remain screwed) or pay the full monthly amount and die of stress.
