Student Loans

Student loans are the most difficult liabilities to get rid of, especially if they are federal loans. Rehab is the best way to get back on the right track... There's a lot of special laws for student loans, including that you can't get rid of them by bankruptcy (I believe) and they will find you almost always.

My advice, start rehab as soon as possible

 

Welcome to the board!

First I have to say I am not an expert on student loans, however, there are a number of people who are very familiar with them.

I dont know any of them that had their student loan collections "disappear". Most had to rehab.

Student loans are a totally different animal that other debts and are next to impossible to "get over on".

I'm hoping someone who knows more about it will be able to give more guidance but from what I've read around here (and I've been here for two years), there isn't a way to make them go away without rehabbing.

I'm curious - why the hurry? If it's for a mortgage, it might do you better to wait a year with the rehab. After the year, I think all the late payments go away and the collections also.

 

I started the rehab route with the OC and never talked to the CA. and they came off my reports with in 6 mo. but I had to dispute after I was already in repayment.

 

and the best way to take care of your family is to learn to live within your means. I am not trying to judge you I have been there. You and your family have to get on a strict budget and learn to do without some of the things you are used to. Our son is 11 mo and I am just counting the days until he is a year and we can switch him from formula to milk so we will can use the $100 bucks for other needs( and that is not an inflated figure) we are still in an aprtment until next year while I fix some of my mistakes. You have to give your self time to get back on your feet or you will always be running to keep up.

 

dep_tx,
I was going to go there with kbanger - he wanted to know how to get rid of it and since I haven't done so, I really wasn't an authority.

However, I agree with you. Living in an apartment for 6 to 12 months isn't that bad - especially for a baby who can't walk yet.

Not judging either but wanting an Amex isn't an convincing argument either.

Creditnetters: please respond if you have experience with this type of thing.

 

Keep bumping your thread up kbanger...someone will help.

 

kbanger

While with persistance and luck, you might get rid of your defaulted student loans off of your CR, they probably would return. Bite the bullet and start and complete the REHAB process. This is the only legitimate way that I am familiar with to fix your student loan problems. The worst thing you can do is to ignore them. The second worst is to consolidate them while in default. That is supposed to stay on your record for the 7 years. If my understanding is correct, the rehab process is not supposed to be onerous, but is supposed to help you get back on track. After rehab, the original owners of the loans are supposed to remove all negatives from your report. This will help you in your mortgage process. If you don't rehab your loans, then you will not be able to qualify for either an FHA or conventional mortgage. I speak from expertise.

Good luck in your quest.

fla-tan

 

kbanger,

fla-tan has it right.

There is no quick fix for student loans. Also, in the grand scheme of things, just one year's "penance" for a clean report (wrt student loans, anyway) is a great deal.

The government (for once) is doing people a great favor with rehabilitation.

 

I'd like to add to what's already been said. Re-habbing is a great tool for student loans. And, in most cases, they have to allow you the chance to re-hab. Once you start though, be very careful to not screw up, some people I know have had to start the whole process over after being late/missing a single payment.

Once you are through, I'd suggest consolidating and making sure that the OCs report correctly. (Sometimes they'll drag their feet).

 

I will second the part about not consolidating. DO NOT CONSOLIDATE!!!

With a rehab you will be able to remove all derogitory ratings from your reports. With a consolidation, you can only work at it daily until some get removed and end up living with what stays.

Unfortunately, the collector for my defaulted loans was only interested in their 25% cut, and so made sure NOT to tell me my options.

 

this is right on, I am one of those guys. I started my reab and 10 mo in one of payments got lost in snail mail and I had to start over. but once I started with the rehab at the CO, the CAs had no leg to stand on and I disputed the bad trades and they cam off first try.

they offer auto pay now and that is the best way to mke sure. they will never show again after 12 mo, then you can consolidate and get the payments comined and reduced

 

Hi,

I've been searching through the site for defaulted student loans and came across this thread...i'm try'n to bump this thread back up hoping i can get some help. I have a few blemishes in my credit report, but nothing like the damage that these student loans are causing me. Here is my story, hope every can have the time to read it and give me a lending hand....

I graduated from college in May of 1999, and took a job that barely pay enough for my rent, let alone the massive amount of bills that i incurred during my school year. I ignored my student loan for nearly 2 years and it went into default and went into a collection agency (Pioneer Collections). I was contacted by Pioneers Collection and decided to give in and decided to take responsibility for my actions. I was told about Re-hab and loan consolidation by Pioneer Collections. They mentioned to me that both the rehab and loan consolidation will bring me to current and get me out of default. They said that Consolidation will get me out of default faster and your credit report will show "PAID in FULL" and all negative items will be deleted incuding the Default status. I decided on Re-hab because it was cheaper for me, i wouldn't have to pay for all those collection costs that was added to my defaulted loan. Guess what....as i made my request to get into re-hab, i was told i don't qualify for rehab...my only option was loan consolidation. Stupid me i said okay, i just want to get my life back together.........worst, stupid me, i got no paper trail to back up anything they said.

Six months later...i am done with consolidation and recently got a copy of all my credit reports. I was STUNNED. I have what alot of you folks here are going through...late payments, 180+ days late, collection accounts, duplicate accounts being reported, one loan getting broken up into 8 different loans. My scores are:
EQU: 591
EXP: 550
TU: 480
I feel like my life is screwed. I have already started my journey on fixing up my credit report. But my main concern is the Student loans. After reading tons of posting and speaking with reps from US dept of education, i found out my listings will NOT get DELETED. It will only be updated as "PAID". I feel like i was lied to by the collection agency. I've called Pioneer back and then said they don't know what happened.....They don't know who told me that i wasn't qualifly for rehab, and that everyone is entitled to rehab. I know what happened...they screwed me so they could get their damn money faster. My loans are now consolidated and i will not make the same mistake again. Is there NO HOPE for people who have taken a correct path in fixing their financial life and take responsibility for their actions? What should i do now? Validation, Dispute, Lawsuit, Goodwill, Nutcase letters, etc.?????

Please help...

Eric

 

That is a tough one but I would think that your only recourse is to dispute, dispute, dispute. The SLs are a BEAST!!! I am coming up on my 10 payment this month and I am on the ACH program so it automatically goes to them. I can not waiti until these last 3 mths are up so I can get back to normal routine.

 

Thanks for the reply..

My first payment out of consolidation is coming up...my new loaner is southwest student loan. I don't know how to dispute something like this. Who do i dispute this who? US department of education? Sue the CA????? This is such as struggle...just when you think you are out of it....it comes back to bite you even harder...

Eric

 

Wow Eric, I really feel for you. What that collection agency did was definately illegal from what I understand, but if you can't prove it then you are probably out of luck. I think you would be well served to try and find others who have gotten the shaft from that particular CA.

One thing about rehab that I am sure any CA doesn't like, is that you will not be liable for the 25% collection fees that are allowed on defaulted student loans. I am unclear though if the CA gets this fee no matter what, or only gets it when you pay up without rehab.

Here I was upset because nobody even told me my rehab rights, while you were lied to about it and screwed beyond belief (