Thanks for your comments to my other post on this topic a few days ago. My son will wait until July 1 to apply for his consolication on his Stafford loans. Here is my next question. He is now current, but has a lot of late pays on these loans over the last few years. When he consolidates, is it possible to get these removed? Or, should he just do the normal disputes after he consolidates? Is the consolidation with the same lender? If so, is there any way to appeal to them to take off the negatives? I just don't know how to approach this. Now that he is making good money, he can keep up with all the bills.
I'm not even getting anyone to look at this, let alone any advice. I've got to beef up my tag lines. I'm hoping all the student loan experts will log in tonight and maybe someone can help. Thanks
Great idea! Start the rehabilitation process now. Once you rehabilitate the loan, the late pays will go away. It has to be 12 payments, though. Then Consolidate. Sometimes. It depends on who you want to consolidate it with. I have a consolidated loan through William D Ford, and recently applied for a new consolidation with Sallie Mae. Great! Sounds like he has a plan
I consolidated my wife's student loans with Sallie Mae (www.salliemae.com). Sallie Mae also has an online payment system called NetRepay by which you can pay the student loan over the Internet through a checking account. I would recommend that you try them. I would wait to dispute the late pays until he consolidates and disbursement of funds has been confirmed from each of the individual lenders. The lenders are more likely to let a dispute go unanswered if they have received their money and the account is closed. If their are problems getting approval for the consolidation loan with Sallie Mae then I would make a case for the fact that a single consolidation loan would be much easier to "stay on top of" than a bunch of smaller individual payments to various lenders. Hope this helps, KernelPacket
Erica: I thought that the loans had to be currently in default before you could rehab. His are current now; but over the last two years there have been a lot of late pays. So, is rehab a possibility, or does he just consolidate? Thanks for your help
Nowhere in the HEA does it say anything about the loan being in default to rehab. As a matter of fact, I think that there is someone on the board that either is in rehab for the same reasons (lates) or just finished rehabbing their loan. I'd rehab and then consolidate. I didn't before, and now I'm stuck.
My understanding has been that they had to go to default before you can rehab them... I am rehabbing mine currently.. they were in default... **I hope this is not the case!!
I asked this question because I remember a post from about four months ago where someone said they had to be in default for at least six months before you could rehab. Anyone else remember that or have any other info?
...rehab is not always an option, sometimes if you can't afford the monthly payment, you will be declined.
