I was due to start paying on my student loan in early spring. I filled out a forberance form when I was about 1 month late. About 2 months later I got my regection notice. Now I was 3 months behind and due for payment 4. In the mean time my husband got hurt and was out of work. I called the creditor and told them my story. I told me my time had ran out for forberances and that I made too much money. (Why they sent my the application I don't know). I told them my husband was out of work I couldn't start paying on it. Her response was"We can take a credit card payment over the phone or straight from your checking account" HELLO no money! Now the other day I received a letter stating call us or you will default. I don't know what to do. I am going to vcall them and I can send my min. monthly payment. (Husband is still out of work) but my bad credit has dropped about 80 points since February because of this. What should I do?
howesit depending on who your servicer is and how much you owe, there are possible solutions available to you. email me off-board and i will discuss them with you. you are getting close to the default area which is supposed to be 270 days late but some servicers will actually declare you in default at 180 days. once in default then your problems multiply. fla-tan
Howesit, Thats the most rediculus excuse I've heard yet. They cannot just give you a blanket reason (YOU MADE TOO MUCH MONEY) its not THAT simple. You can make 100k or more a year, but if your expenses are equal or close to equal with your income, then you can show "Undue financial hardship" Once you have established that, you can get atleast 3 years deferment or VERY low payments Remember, forget about a forebearance, you want a deferment(interst doesn't ocure). Please, whatever you do, don't fall for the crap they are handing you right now - they are a collection agency and will lie to you until you call them on it. There are many options available to you - USE THEM. I wish you the best, Sal
Sal It is very dangerous to make blanket statements anytime you are dealing with student loans. Just because you have an economic hardship, does not mean you will qualify for an economic hardship deferment. The requirements are very stringent. Also, why do you automatically assume that howsit is daeling with a collection agency. The ONLY time a collection agency gets involved with student loans is when the borrower is in default. Howsit is dealing with his Servicer, and unfortunately, the 5 inch thick book of regulations are little more than guidelines and give the servicer a tremendous amount of latitude. Remember, the guidelines are just that GUIDELINES ONLY. BTW, not only have I seen the manual, I have read the parts of it that deal with both deferment and forbearance. fla-tan
Not all servicers allow general forbearances (which is what you want, since you don't meet financial hardship criteria). If your servicer doesn't have a general forbearance plan, then you will have to prove financial hardship, some other academic/military exemption or pay the money. But Direct Loans will give you a general forbearance. Make one payment on the current loan (keeps it from default for a little while longer), and consolidate it tomorrow to Direct Loans (www.ed.gov/directloan). Direct Loans is the only servicer I know of which offers general forbearances, no questions asked. A few questions but they are easy (why do you need it? "to pay down bills"). I've done this two years in a row, though interest does accrue. Of course, do see if you qualify for a financial deferment with Direct Loans, which will save you money - but if you don't - TAKE the "general forbearance" and keep yourself out of default. Their general forbearance is extremely easy to get.
