Retroactive Forbearance

[Sanitizer]

SM just informed me that the lates on my SL's are due to forbearances that were applied retroactively. They informed me that, the lates, therefore, will not be removed.

 

Can they legally report lates when loans were in periods of forbearance--whether retroactively applied or not?

[latrues]

I have been informed that they can and do report forebearances as late as they are not the same as deferred - they are actually late. But when a student is talking to them they are never told this. They are just told they have an option of forebearance as if they are doing them a big favor.

[cease]

I have been informed that they can and do report forebearances as late as they are not the same as deferred - they are actually late.  But when a student is talking to them they are never told this.  They are just told they have an option of forebearance as if they are doing them a big favor.

<{POST_SNAPBACK}>

 

Aw man, that hurts so bad to just find out.

 

SallieMae

[Sanitizer]

Where can I read more about this? as my SL's that are now in forbearance are not reporting late, but previously, they had been in forbearance and reported late. What gives?

[Sanitizer]

Can a SL in forbearance be reported as late? What laws are applicable?

[LynnInMN]

Can a SL in forbearance be reported as late? What laws are applicable?

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No. However, if you are already past due or late, and apply for a retroactive forebearance, they will not remove the lates. They just backdate the forebearance.

[Lennon]

Mine reported late for a retroactive forebearance. Very, very, very late. Now I'm screwed

[deyoung5]

I have the same problem. I have tried Goodwill and that does not work. I only have 3 late marks almost 2 years ago. It still hurts. You may want to do a search because I have come across some people that were able to get them removed. I just have not dealt with it using their tactics yet.

[Sanitizer]

Can a SL in forbearance be reported as late? What laws are applicable?

<{POST_SNAPBACK}>

 

No. However, if you are already past due or late, and apply for a retroactive forebearance, they will not remove the lates. They just backdate the forebearance.

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Lynn,

 

What good is a retroactive forbearance? Isn't the purpose of a forbearance to allow an individual to temporarily halt the required payments on their SL's? Their worry is now and into the future. Please explain.

[LynnInMN]

Can a SL in forbearance be reported as late? What laws are applicable?

<{POST_SNAPBACK}>

 

No. However, if you are already past due or late, and apply for a retroactive forebearance, they will not remove the lates. They just backdate the forebearance.

<{POST_SNAPBACK}>

Lynn,

 

What good is a retroactive forbearance? Isn't the purpose of a forbearance to allow an individual to temporarily halt the required payments on their SL's? Their worry is now and into the future. Please explain.

<{POST_SNAPBACK}>

 

 

It a borrower has used up all their deferments, you can ask for forbearance. The difference between the two is...

Forbearance

A period of time during which the borrower is permitted to temporarily cease making payments or reduce the amount of his or her payments. The borrower is responsible for the interest that accrues on the loan during the forbearance period.

Deferment

A period of time when a borrower is allowed to postpone student loan repayment (under certain conditions) without cost or penalty. The interest on unsubsidized loans continues to accrue during deferment at the borrower's expense.

 

Basically applying for forbearance stops the due diligence clock after all deferment privileges have run out. Once deferments have run out, without forbearance you only have 225 days before a loan will default. IMHO unless you are on the verge of defaulting for non payment, retro'ing a forbearance is somewhat useless. Either way you are going to get hit with the lates...and since forbearance periods are limited, you might as well take it going forward instead of back!

[Sanitizer]

Thanks for the prompt reponse Lynn! That's what I thought. Why they would even offer to apply a retro forbearance is beyond me. You're awesome!