Student Loan Defaults; avoid fees

Discussion in 'Credit Talk' started by longhair, Jul 24, 2001.

  1. longhair

    longhair Active Member

    I have a student loan that I defaulted on in 1999. I found a company on the net, called CREDIT RESOURCES NETWORK, that claims that they will negotiate the loan back to the day I gruaduated. No more bad credit, and no intrest and fees. As I have read alot of information on the subject of defaulted student loans, I was wondering why someone else hasn't done this.

    The company told me that a group of underwriters would purchase my loan from the guarator and re do it like the day I graduated, After some payments the bad credit and all would be deleted. Just wondering if anyone else has done business with this company called CREDIT RESOURCES NETWORK, in Chicago, IL.

    I was just wondering if there is anyone out there that has negotiated to have the collection fees and intrest cancelled when the rehabed their defaulted loan.

  2. CardKid

    CardKid Well-Known Member

    Try calling your original lender(s) and ask about rehabilitating your loan(s). That is, make 12 timely payments, the bad credit is erased, and your loan is brought current.

  3. longhair

    longhair Active Member

    BUT is the collection costs and the accrued interest WAVIED? They are wanting me to pay $15K more than I borrowed.
  4. marci

    marci Well-Known Member

    No, not with a government rehabilitation program. 15K more is a lot to repay, but then again, how much did you borrow? That must be mostly interest, since collection costs are capped at 18.5% of the original principle.

    I haven't heard of the company that you listed above, and I don't think just any company can *guarantee* deletion unless that company uses the contracts that the DOE set up for rehab.

    To be sure, you may want to check out these sites and call the Ombudsman's office. I'd hate to see you let this company buy your loan - but cheat you out of a true rehab and cheat from some benefits of government student loans such as deferred interest, forbearances, etc... (this is a list of government guarantor agencies and maybe you can find this company on it)

    Hope this helps,
  5. longhair

    longhair Active Member

    I will make sure that they use the proper rehabilitation papers from the DOE. Thanks
  6. marci

    marci Well-Known Member

    Well... it's not quite that simple, and I should have asked these questions earlier before answering you. Some clarification, please...

    Is your student loan a federal student loan (i.e. gov. Stafford/Perkins, etc...) or a private bank student loan? What is the name of the company that currently "owns" (or services) your student loan? Is it Credit Resources Network (CRN)? Whose entries on your credit report is CRN claiming it will delete? It's own or another company's?

    Before you sign any contract with CRN, I strongly recommend that you make sure you know who is servicing the loan (call "1-800-4fedaid" to ask) and that the loan is truly eligible for rehabilitation. If CRN is a legitimate servicer who *currently* has your loan - that it can do a rehabilitation. If CRN doesn't service the loan now, then it cannot do the rehabilitation nor can it "guarantee" deletion of any negative entries on your credit reports.

    What it *can* do is pay the loan in full and bring you out of default. But, depending on what kind of company it is (I've never heard of it in a context of student loans), that risks losing some of the pay-back benefits that go along with government serviced student loans.

    Also, use the website below to call the DOE Ombudsman's office to find out more about CRN before you choose to do business with them.
  7. Kittw1

    Kittw1 Well-Known Member

    also visit the following website...Uncle Government is giving an interest reduction if you rehab the loan now

    worked for me...waiting to see how it shows on my credit report monthly payments are $47.23 for an $8000+ balance. No more income tax offset. I just love it

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