ICR agreement

[Giselle4]

I had a private loan in default since Sept. 2007. I called ICR up and here is the agreement we came up with:

 

 

I would make payments of $200 per month for 6 months, with the option to reach a settlement at the end of 6 months.

 

Or I can continue to make the payments.

 

I am planning on starting a seperate checking account for this.

 

They were very nice about it, and the lady said that after we came to an agreement for the paymeny withdrawl, the payment start date, etc, she would send me a confirmation on this. She then said that I will recieve billing statements 7-10 business days before each withdrawl.

 

My loan total is 11k

 

 

Does this all sound normal? Any red flags or anythign I should watch out for? They seemed very willing to work with me but I dont want to be gullible and walk into a trap.

 

Then again I guess the situation is different when you're dealing with student loans....

[LynnInMN]

ICR stands for income contingent repayment and is only applicable for Direct Loan Federal Consolidation loan repayment plans. In order words, there is no such thing when referring to a private loan. Sure, they can use the term but they can make it mean whatever they want.

 

If the plan works for you, then go ahead. Private loans can be horrible to negotiate with and if you can afford it, do it.

[Saria]

I'm thinking the OP is referring to Immediate Credit Recovery. I had the same thought when I saw the acronym.

[megaguru]

OP-I am curious as to how this account is reporting to the CRAs, and also whether you've inquired of ICR to update to positive account. I owe 2.7k for past due tuition, and want to make arrangements with ICR, but I am trying to make sure I do my homework first. I've looked online and really did not see a lot of complaints, etc. about ICR. I think the arrangement they've offered to you (based upon your post) seems fair.

[LynnInMN]

OP-I am curious as to how this account is reporting to the CRAs, and also whether you've inquired of ICR to update to positive account. I owe 2.7k for past due tuition, and want to make arrangements with ICR, but I am trying to make sure I do my homework first. I've looked online and really did not see a lot of complaints, etc. about ICR. I think the arrangement they've offered to you (based upon your post) seems fair.

 

 

The OP's acccount is in default so it will report negatively, regardless of any payment plan.

 

Generally with tuition accounts it is the school that is reporting.

[Giselle4]

It is Immediate credit recovery.

 

I just want to make sure that this is a pretty standard agreement.

 

I guess it will continue to show negative from the school on my credit report. Should I ask them to change it to a positive report?

Edited May 9, 2008 by Giselle4

[Giselle4]

Is it safe to use my normal checking account or should I definitly create a new one?