Stafford Loans VERY late

[tplaya07]

I have 2 Stafford loans through Citibank (one subsidized, the other unsubsidized) that are sitting at about 200 days late right now because I stopped going to school for a while for personal reasons. However, I have just filled out all the financial aid paperwork through FAFSA so that I can return to school. I only owe about $400ish total for the 2 loans. Is there any way to get the lates removed from my Credit Report? From what I've read, it looks futile, but I figured I'd ask the pro's just in case. Thanks in advance.

[Saria]

I have 2 Stafford loans through Citibank (one subsidized, the other unsubsidized) that are sitting at about 200 days late right now because I stopped going to school for a while for personal reasons. However, I have just filled out all the financial aid paperwork through FAFSA so that I can return to school. I only owe about $400ish total for the 2 loans. Is there any way to get the lates removed from my Credit Report? From what I've read, it looks futile, but I figured I'd ask the pro's just in case. Thanks in advance.

 

It's highly unlikely that you'd be able to get the lates removed. More importantly though, are you currently making payments? You really don't want these to default and a lot of trouble can be (and could have been) avoided by simply asking for a short-term forebearance.

[tplaya07]

I apologize...I'm not familiar with what a forebearance does. I know that they told me that I would be expected to start repaying the student loans once I had not attended college for 6 months. Is that what it is?

If not, do you think I might have any chance asking for forgiveness/ removal of baddies on credit report claiming that I was unaware of option to forebear, if I were to pay off the loans in full (what I owe I mean)?

[Saria]

I apologize...I'm not familiar with what a forebearance does. I know that they told me that I would be expected to start repaying the student loans once I had not attended college for 6 months. Is that what it is?

If not, do you think I might have any chance asking for forgiveness/ removal of baddies on credit report claiming that I was unaware of option to forebear, if I were to pay off the loans in full (what I owe I mean)?

 

A forbearance allows you to temporarily postpone making payments, but interest continues to accrue. The six-month time frame you're thinking of is called the grace period. They will not delete the lates on your credit report on the basis of your not knowing of your options. However, I would still recommend calling and asking for a forbearance. I believe they may allow a retroactive forbearance that won't change your credit report, but would bring you back into good standing with the lender and prevent a default. I'm not 100% sure of how a retroactive forbearance works. Perhaps someone else can shed a little more light on this.

[LynnInMN]

Call your lender and ask for a deferment or forebearance....look it up on the lenders webpage.

 

Another thing...if these loans default, it WILL mess up financial aid until these are paid in full.