Sure need some help on student loan questions...

[jennylinn]

In 1999 I could not go back to school due to health problem. I finished out the spring semester in 1999 though, but missed some days because of my health.

I had never paid a dime on my student loans. I had a few deferrments, but then they went into default.

I didn't know what to do because i had NO income at all during this time and still have not been able to work up until this day.

Now my husband works and we have 2 children.

His income is not great but not VERY low either.

Now I got a phone call the other day from this company wanting to consolidate my student loans. The guy on the phone said this would be so easy and based on my income *i have none* I probably wouldn't have to make any payments and I would come out of default after signing these papers that he was going to send me.,

I got the papers and here are my questions...

Should I trust this collection agency and sign my signature, date,promisory note,

It is for Federal Direct loan consolidation. Plus, there is an authorization letter giving them the right to contact direct loans, the dept of education and anyone else they want to contact!

They were really nice on the phone but I havn't signed anything yet..

 

Also, are they just taking my 0 income into account, or my spouse's?

They said nothing about my spouses income.

 

I would be so grateful for some input here.

We don't have the money to pay anything, truly.

What do you suggest I do?

[fla-tan]

In 1999 I could not go back to school due to health problem. I finished out the spring semester in 1999 though, but missed some days because of my health.

I had never paid a dime on my student loans. I had a few deferrments, but then they went into default.

I didn't know what to do because i had NO income at all during this time and still have not been able to work up until this day.

Now my husband works and we have 2 children.

His income is not great but not VERY low either.

Now I got a phone call the other day from this company wanting to consolidate my student loans. The guy on the phone said this would be so easy and based on my income *i have none* I probably wouldn't have to make any payments and I would come out of default after signing these papers that he was going to send me.,

I got the papers and here are my questions...

Should I trust this collection agency and sign my signature, date,promisory note,

It is for Federal Direct loan consolidation.  Plus, there is an authorization letter giving them the right to contact direct loans, the dept of education and anyone else they want to contact!

They were really nice on the phone but I havn't signed anything yet..

 

Also, are they just taking my 0 income into account, or my spouse's?

They said nothing about my spouses income.

 

I would be so grateful for some input here.

We don't have the money to pay anything, truly.

What do you suggest I do?

 

Jenny

 

First welcome to the Student Loan Forum. I hope that we can help you.

 

This has become a standard tactic with some of the student loan collection agencies and yes it can be done this way. I would recommend though, that instead of going through a collection agency to do this, try contacting Direct Loans directly and talking with them. It sounds to me as if your loans were originally with Direct Loans and if that is the case, they should be able to do the consolidation themselves. When you do a Direct Consolidation while in default, Direct automatically puts you into an income contingent repayment program. With zero income, your will have no payments to make. Your husband's income will have zero to do with your qualifying for any of the deferments or forbearances, which you will get the rights to back.

 

Also, go to the useful links at the beginning of the forum and you will see Direct Loans link there and you should be able to get a phone number from that.

 

Good Luck and I hope this helps.

 

 

fla-tan

Forum Moderator

[jennylinn]

then it seems like it's on the up and up... And that is truly great news if my husband's income has nothing to do with payment plans, etc..

They asked for my tax returns for certain years. They cannot take his income, small as it is, into account?

That makes me feel a bit better

Thanks fla