My $10k loan from 93 is going to be the death of me. It is now in default: Sallie Mae says 0 balance, paid by insurance and American Student Assistance just added a collection tradeline. I have paid $15k on this $10k loan and ASA wants another $7k (mostly capitalized interest and collection costs). I have gotten no where with ASA - they want me to send in an application with my first born to try to do an income based repayment plan and I do not work (take care of a sick child all day). I can't include DH's income because then I wouldn't qualify and anyway, it's not his debt and I don't want to. So, I gave up on ASA and contacted the DOE Ombusdman via letter. I received a letter back saying they didn't receive enough info. So, I sent it again...and received the same damn form letter again. I want this default off my credit report and all the nasties associated with it so I can refinance my underwater mortgage. Any advice welcome!
If you want all the baddies off your credit reports, you're going to need to explore a loan rehab with ASA. Consolidating out of default via IBR isn't going to remove the negative marks from your credit reports. Have you asked them about loan rehabilitation yet? If so, what was their response?
ASA only mentioned IBR as an option, that's why I reached out to the Ombudsman. I received an email today from the DOE "team leader" asking for my social (for the third time). They sure don't make it easy to pay them off!
Update: loan rehab it is. ASA was nice enough to count my last 7 piddling payments so by March the loan should be healthy again and by May all the baddies should be gone. I will still be paying on this until the day I croak but at least it will be a positive trade line! lol
