Lates on your Student Loan

[unixkid]

I have a few late payments on my student loans but they are current for the last two years. How do I remove the late payments from the student loans.

[TxQuiltGirl]

You can try disputing with the CRA and/or a goodwill letter to the lender.

 

Basically the same stuff you'd do with any other lender. It may or may not work.

[unixkid]

I try to dispute it and I got it verify. No change. What else should i do.

[TxQuiltGirl]

A goodwill letter to the lender ...

[unixkid]

The lender is ACS.

[TxQuiltGirl]

The lender is ACS.

<{POST_SNAPBACK}>

 

 

Okay. So send them a letter asking them to remove the lates.

[pryan67]

OR, you could send a letter to the lender asking them to delete the lates as a gesture of goodwill...

[clean_it_up]

ACS removed my lates with a retroactive forebearance. Maybe it was because it was my first late with them. Try goodwill it may work.

[unixkid]

Ok, I will try. I know there sample goodwill letters on the board but did anyone do anything special for ACS?

[gcjerwin]

I tried goodwill letters with mine and they said, "We are contracted not to remove lates or derogatory info if it is furnished correctly."

 

A nice way to say no I suppose... I have disputed recently and have not seen results yet. Will keep you posted.

[unixkid]

Thanks let me know what happens. I was thinking about writting a validation letter but i dont know. Any advice.

[TxQuiltGirl]

A validation letter will get you nowhere. They can and will validate. The only thing you can do is try a goodwill letter, but don't be surprised if it doesn't work.

[nearly_there]

I must say that I find it a little frustrating the whole student program.

 

For example, I was an salamander and didn't realize that my grace period started 6 months before I finished school ( I dropped below 1/2 hours). As soon as I discovered that I was 180 days late, I immediately brought my loans current and have never been late since then (3 years now). I have multiple 120+ lates that won't budge off TU. Now I'm afraid to dispute or goodwill because I've heard stories that Direct Loans will update all three with the negative information if you pester them (EQ deleted, EX updated to never late).

 

No rehabilitation is available for me. Yet, if people completely blow off the debt (for whatever reasons, tragedy etc.) they are offered the chance to wipe the slate clean. I see how it's great for people who have had difficulty paying, but it would be nice if I could catch a break with Direct Loans.

 

Sorry for the rant.

 

argh.

[LynnInMN]

I must say that I find it a little frustrating the whole student program.

 

No rehabilitation is available for me. Yet, if people completely blow off the debt (for whatever reasons, tragedy etc.) they are offered the chance to wipe the slate clean. I see how it's great for people who have had difficulty paying, but it would be nice if I could catch a break with Direct Loans.

 

Not quite.  You have to keep in mind that with rehab it is the "current holder" which would be your loan guarantor, that wipe the slate clean.  So in your situtation if you were to default, your current lates would remain. 

argh.

<{POST_SNAPBACK}>

[nearly_there]

Right...I understand that. I just meant that it can be worked out better to default than to fix your mistakes the old-fashioned way.

[TxQuiltGirl]

Right...I understand that. I just meant that it can be worked out better to default than to fix your mistakes the old-fashioned way.

<{POST_SNAPBACK}>

 

 

Nearly_There, your comments are misleading and can be miscontrued by someone unfamiliar with defaulting on a student loan. It's NOT easier on the borrower to default then rehabilitate than it is to deal with a few lates on your CR. Please do not make such comments here as they are extremely misleading, and very wrong.

 

Thanks.

[nearly_there]

Nearly_There, your comments are misleading and can be miscontrued by someone unfamiliar with defaulting on a student loan. It's NOT easier on the borrower to default then rehabilitate than it is to deal with a few lates on your CR. Please do not make such comments here as they are extremely misleading, and very wrong.

 

Thanks.

<{POST_SNAPBACK}>

 

How are they misleading? Is it true that if you default, there is the possibility to enter re-hab and have the old slate cleaned? Is it true that if you are late and make yourself current the lates stay?

 

If people can't figure out on their own what comments to listen to and not, then what's the point of a "forum" anyway? This is my opinion. I'm so tired of everyone taking everything to the lowest common denominator. It's insulting to inherently believe that everyone is an salamander and can't think for themselves.

 

I won't post here again. Especially after a scolding based basically on a rant. I wasn't even giving someone advice. Whatever.

Edited October 11, 2005 by nearly_there

[thjatty]

Here's the problem with defaulting and then rehab.

 

If you default, your credit score goes in the proverbial toilet. Your account is flagges with an "I 9" which is uh oh land. Only after you've gotten approval and started rehab will that have any effect, and we know how fast things move with CRAs and Student Loan info...

 

fyi,

 

thjatty

[TxQuiltGirl]

Nearly_There, your comments are misleading and can be miscontrued by someone unfamiliar with defaulting on a student loan. It's NOT easier on the borrower to default then rehabilitate than it is to deal with a few lates on your CR. Please do not make such comments here as they are extremely misleading, and very wrong.

 

Thanks.

<{POST_SNAPBACK}>

 

How are they misleading? Is it true that if you default, there is the possibility to enter re-hab and have the old slate cleaned? Is it true that if you are late and make yourself current the lates stay?

 

If people can't figure out on their own what comments to listen to and not, then what's the point of a "forum" anyway? This is my opinion. I'm so tired of everyone taking everything to the lowest common denominator. It's insulting to inherently believe that everyone is an salamander and can't think for themselves.

 

I won't post here again. Especially after a scolding based basically on a rant. I wasn't even giving someone advice. Whatever.

<{POST_SNAPBACK}>

 

 

They are misleading because you make it sound like if a person defaults instead of trying to work out a payment plan before that happens, they're better off. Having been in a default situation, I can tell you that you are wrong. And when desperate people come here and read such comments, they're going to think, "Oh, ok. If I let this default and then enter rehab, I'm better off." They're not. Ask any of the people here who have defaulted what that's like, and you'll get a variety of answers but not a single one of them will tell you it's been a pleasant experience.

 

No one has ever said that everyone (or anyone for that matter) is an salamander, but I won't allow someone to post what is inaccurate information, or off-base speculation, without making the point that it's inaccurate or off-base. Since you have never actually been in default yourself, you're making assumptions that it's better than dealing with a "few lates" on your CR. It's not.

[Havok]

Well, yes...TX is right and I can explain why. What you assume by your statement is that by rehabbing, all negative information related to the loan is removed(Clean slate) NOT EVEN the case. There is really only one gaurantee if anything and that is the status of your loans will be changed from Defaulted Status. Negative information up to the point of the default CAN and in my case, WILL AND HAS, remained. Yes your statement is more than misleading, it is incorrect. CA's dont usually post to your CR, so that information would not need to be removed. The secondary benefit, and its not even that great of one, is that you are issued new loans stamped with the original date. Meaning you retain the age of the accounts. Thats it. Rehab sucks, its awful. Plain awful. And the other thing that you fail to realize is that the CA is going to tack on addition collection fees, so expect that $10000, by the end of your rehab period, will be $11,500. You didnt even pay down the debt you just satisfied the collector. So you probably paid somewhere between 3-4 grand in collection fees.

[section525]

I have sort of a replated question.

 

I didn't know my grace period was over also. I had 120 days late before I found out. But I paid a $550 payment and the account is now up to date (this was just a week ago).

 

What are the chances of getting them (Direct Loans) to remove those lates, 1) if I keep making my payments ontime, or 2) if I pay off the entire loan (it's only $2200 or something).

Edited October 21, 2005 by 525noitces

[TxQuiltGirl]

I don't know where this notion that CAs collecting on SLs don't report on CRs came from, but it is categorically untrue and I wish it would stop being repeated here.

 

CAs and GUARANTORS CAN AND WILL REPORT. Period. The end.

 

If the delinquent loan is within the reporting period, it WILL be reported. Now, if your SL is 20 years old then no, the CA cannot report it. But that isn't the case in many instances.

 

Negative information from the CA or guarantor holding your loan SHOULD be deleted at the end of rehab. That doesn't mean that they will take the negative info off your report from the original lender, but it IS recommended to those lenders.

 

----------------------------------------

 

The only way to find out of DL will remove lates is to do a goodwill letter and find out. Good luck.

[Havok]

Well TX, if I have stated something incorrectly I apologize. That is what my experience was. I do have one simple question then. If the negative information SHOULDbe removed. What is the best way to attack it? I'm not asking you this from the "I am a newbie, and Im not willing to read first." I have successfully removed all negs on my credit report except for the negative information that has been furnished by the gaurantor. I just have tried everything I know, and they have been sticky icky. I'm willing to try whatever. Sorry...dont mean to hijack the thread. Whatever advice you have is appreciated TX.

[TxQuiltGirl]

Well TX, if I have stated something incorrectly I apologize.  That is what my experience was.  I do have one simple question then.  If the negative information SHOULDbe removed.  What is the best way to attack it? I'm not asking you this from the "I am a newbie, and Im not willing to read first." I have successfully removed all negs on my credit report except for the negative information that has been furnished by the gaurantor.  I just have tried everything I know, and they have been sticky icky.  I'm willing to try whatever. Sorry...dont mean to hijack the thread.  Whatever advice you have is appreciated TX.

<{POST_SNAPBACK}>

 

 

You should contact whomever you made the arrangements with to follow up. That's really the only advice I have for you.

 

A word of caution. In some instances the original lender does NOT update your records. If that's what you're looking for, a letter to the lender is your best bet.