Hopefully someone can help me out here. My federal Staffrod loan is in rehab now. However, my private alternative loan is also in default and they will not delete unless I can settle in full (or at least 85%). I have not come across anyone who will allow me to consolidate both my rehabbed stafford loan and the defaulted private loan. Does anyone know of a company that will do so? I'm grasping at straws here.
tmitchell, Can I ask you how you got your loan into rehab? I have been reading a bunch of posts and I don't understand. I have a Federal Perkins loan that is currently with a collection agency. I have been paying them monthly, but they keep sending me letters that say I should consolidate with a Direct Loan. If I rehab the loan, won't they take the negative information off my report? I need help.
They are telling you to consolodate so they get all their money upfront. If you do this, the negatives are not deleted from your credit report. However, if you rehab, all of the negatives should be deleted. My lonas are through PHEAA and they told me about the rehab. The HEA (Higher Education Act) states that all federally subsidized student loans are capable of being rehabbed. If you have made more than 12 consecutive, on-time payments to this CA, demand that it be rehabilitated according to the HEA. If they resist, contact the dept of education.
tmitchell You do not want to consolidate your loans together. If you do so, you will lose your federal protections. The government does not allow you to combine them together. Sorry to be giving you bad news. fla-tan
fla-tan... Thanks for the advice. However, I did find a handful of places that will allow you to consolidate federal & private into a single payment. BUT they won't consolidate if either is in default so the default is my problem. The reason for my interest in consolidation is the fact that the private loan holder will delete the negatives from my credit reports if I settle it for at least 85%. I figured if I could get it included in a consolidation loan, it would be settled and the negatives removed.
Yes there are a few consolidators that will give you a single payment, but they don't consolidate the loans together. Also, the private consolidation loan is credit based, unlike the federal consolidation. Once you are through the rehab process with PHEAA, especially if you are completed and rehabbed by June-03, do a federal consolidation and lock your rate in at alltime lows. Good luck to you fla-tan
You may also want to try and approach the private collector with the same approach that is used with charge-offs. If I pay the loan off, with ppayments, will you delete? Understand that private student loans are NOT treated the same way as federal student loans. They will drop off your credit 7 years after DOLA and you can include them in a BK and they are dischargable. fla-tan
Now I'm agitated. I didn't know that at the time I filed CH7 in 1997. Oh well. It's not like I can't afford it. I'd just like to get it removed from CR in order to negotiate a better rate on my mortgage I was approved for. They have told me they will delete one I settle at least 85% of it (about $6000).
