Default on student loans, what now?

[Optimizer]

Hey everyone,

 

My wife went to college 7 years ago and we had some REALLY HARD TIMES (no excuse). Anyway she has never paid a dime on her college loan. She has incurred interest and now owes a nice $53,000! What should I do so she can start paying this off? DO I just call the student loan default accounts on her credit report and start paying on them? What's the best way to handle this? Right now she only makes $1400 a month and they want $700 a month in payments. With the interest they charge she will never catch up.

 

Any suggestions or help? With it being 7 years if I wait another year will they go away? They were opened 10/1/2001

Edited January 12, 2009 by Optimizer

[LynnInMN]

Hey everyone,

 

My wife went to college 7 years ago and we had some REALLY HARD TIMES (no excuse). Anyway she has never paid a dime on her college loan. She has incurred interest and now owes a nice $53,000! What should I do so she can start paying this off? DO I just call the student loan default accounts on her credit report and start paying on them? What's the best way to handle this? Right now she only makes $1400 a month and they want $700 a month in payments. With the interest they charge she will never catch up.

 

Any suggestions or help? With it being 7 years if I wait another year will they go away? They were opened 10/1/2001

 

 

Private or federal??

 

Who does she owe now???

 

Nope...it will never go away. Besides, open date is irrevelvant. Your CR drop of date goes from the date of default, not when you borrowed.

[Optimizer]

Hey everyone,

 

My wife went to college 7 years ago and we had some REALLY HARD TIMES (no excuse). Anyway she has never paid a dime on her college loan. She has incurred interest and now owes a nice $53,000! What should I do so she can start paying this off? DO I just call the student loan default accounts on her credit report and start paying on them? What's the best way to handle this? Right now she only makes $1400 a month and they want $700 a month in payments. With the interest they charge she will never catch up.

 

Any suggestions or help? With it being 7 years if I wait another year will they go away? They were opened 10/1/2001

 

 

Private or federal??

 

Who does she owe now???

 

Nope...it will never go away. Besides, open date is irrevelvant. Your CR drop of date goes from the date of default, not when you borrowed.

 

It looks like a private firm has the file, so what should I do at this point?