I don't even know where to start on this one, lol.
I have student loans that defaulted several years ago....they garnished my wages. Before that, I tried to work it out with them, but by that time it was too late. They told me there was nothing I could do short of paying it off all at once (about 25k), or my wages would be garnished. That was about 3 years ago.
My financial troubles have gone rapidly downhill since then. I filed a chapter 7...I know that student loans are not dischargable, but at least I have had my wages, err, ungarnished.
I don't even know where to begin repaying these loans. I just recently pulled my credit report. Sallie Mae is listed (many times), PHEAA...PHEAA was the original loan, sold to Sallie Mae. But on my paycheck, it was listed as PHEAA for the garnishment.
I plan on calling one or both of them, but I'd like to be armed before I do. What is my recourse? What should I expect them to do for me as far as a repayment plan? Will they eventually go back to garnishing my wages?....meaning, them removing that, is that just some sort of temporary relief or something. Will the garnishment come back.
Another thing I want to mention is that on my credit report, it lists PHEAA as being included in bk, Sallie Mae as 'charge off, sold'. The original notes were for 1994/95.
Sorry if this is confusing..I'm confused!
One other thing....is it normal for them to list each and every 'loan' seperately? Seriously, it's on my report many many times. But to note, they all also list a balance of $0...past due $0.
Are they gone, or are they just coming up with another stragegy? lol.
Thanks. Sorry if that was all confusing. Hopefully somebody can help me work through it.
~Kim
Full Version: Student loans, BK, etc, what a mess
QUOTE(sirona71 @ Jul 10 2005, 03:52 PM)
I don't even know where to start on this one, lol.
I have student loans that defaulted several years ago....they garnished my wages. Before that, I tried to work it out with them, but by that time it was too late. They told me there was nothing I could do short of paying it off all at once (about 25k), or my wages would be garnished. That was about 3 years ago.
I don't even know where to begin repaying these loans. I just recently pulled my credit report. Sallie Mae is listed (many times), PHEAA...PHEAA was the original loan, sold to Sallie Mae. But on my paycheck, it was listed as PHEAA for the garnishment.
PHEAA (http://www.pheaa.org/) is your loan guarantey agency. When you default, Sallie Mae filled a claim against PHEAA and Sallie Mae is paid off. They are out of the picture. However, the tradelines usually remain for 7 years from the date of last activity.
I plan on calling one or both of them, but I'd like to be armed before I do.
Call PHEAA. Sallie Mae is no longer involved.
What is my recourse? What should I expect them to do for me as far as a repayment plan? Will they eventually go back to garnishing my wages?....meaning, them removing that, is that just some sort of temporary relief or something. Will the garnishment come back.
The two best options at this point are either rehabilitating your loan or consolidating it. Rehab requires that you make 12 on time monthly payments that are deemed reasonable and affordable to both you and the agency. After the rehab is completed your loan is reinsured and sold to a lender. The negative tradeline that PHEAA is reporting will be changed to reflect current status.
Consolidation is option 2. Since it sounds like you have one lender you will probably need to consolidate thru Sallie Mae http://www.salliemae.com/apply/borrowing/smartloan.html. However consolidation does not help your credit as the tradelines by PHEAA are not changed. They will simply reflect a zero balance and default. The payments thru consolidation are usually more affordable than thru rehab. Do some research and see which option is best for you and then call PHEAA. Consolidations loan "normally" go thru in about 60 days..however due to the interest increase on July 1st, all of the consolidating lenders are backed up, some for up to six months.
Good luck!!
Another thing I want to mention is that on my credit report, it lists PHEAA as being included in bk, Sallie Mae as 'charge off, sold'. The original notes were for 1994/95.
When you filed the BK listing PHEAA, they will automatically report included in BK. This is normal, even though they are not dischargeable. Sallie Maes notations are standard for default. For student loans, original note dates really meaning nothing.
Sorry if this is confusing..I'm confused!
One other thing....is it normal for them to list each and every 'loan' seperately? Seriously, it's on my report many many times. But to note, they all also list a balance of $0...past due $0.
Yup...each loan is a seperate tradeline.
I have student loans that defaulted several years ago....they garnished my wages. Before that, I tried to work it out with them, but by that time it was too late. They told me there was nothing I could do short of paying it off all at once (about 25k), or my wages would be garnished. That was about 3 years ago.
I don't even know where to begin repaying these loans. I just recently pulled my credit report. Sallie Mae is listed (many times), PHEAA...PHEAA was the original loan, sold to Sallie Mae. But on my paycheck, it was listed as PHEAA for the garnishment.
PHEAA (http://www.pheaa.org/) is your loan guarantey agency. When you default, Sallie Mae filled a claim against PHEAA and Sallie Mae is paid off. They are out of the picture. However, the tradelines usually remain for 7 years from the date of last activity.
I plan on calling one or both of them, but I'd like to be armed before I do.
Call PHEAA. Sallie Mae is no longer involved.
What is my recourse? What should I expect them to do for me as far as a repayment plan? Will they eventually go back to garnishing my wages?....meaning, them removing that, is that just some sort of temporary relief or something. Will the garnishment come back.
The two best options at this point are either rehabilitating your loan or consolidating it. Rehab requires that you make 12 on time monthly payments that are deemed reasonable and affordable to both you and the agency. After the rehab is completed your loan is reinsured and sold to a lender. The negative tradeline that PHEAA is reporting will be changed to reflect current status.
Consolidation is option 2. Since it sounds like you have one lender you will probably need to consolidate thru Sallie Mae http://www.salliemae.com/apply/borrowing/smartloan.html. However consolidation does not help your credit as the tradelines by PHEAA are not changed. They will simply reflect a zero balance and default. The payments thru consolidation are usually more affordable than thru rehab. Do some research and see which option is best for you and then call PHEAA. Consolidations loan "normally" go thru in about 60 days..however due to the interest increase on July 1st, all of the consolidating lenders are backed up, some for up to six months.
Good luck!!
Another thing I want to mention is that on my credit report, it lists PHEAA as being included in bk, Sallie Mae as 'charge off, sold'. The original notes were for 1994/95.
When you filed the BK listing PHEAA, they will automatically report included in BK. This is normal, even though they are not dischargeable. Sallie Maes notations are standard for default. For student loans, original note dates really meaning nothing.
Sorry if this is confusing..I'm confused!
One other thing....is it normal for them to list each and every 'loan' seperately? Seriously, it's on my report many many times. But to note, they all also list a balance of $0...past due $0.
Yup...each loan is a seperate tradeline.
Oh thank you so much. You have cleared up ALOT for me. If I found this board a long time ago, much of this may not have happened.
Thanks again!
Thanks again!
Ok, I called Pheaa just now. She said that while I'm in BK, they cannot do anything...as far as send me any sort of communication or bill because it is against the law and therefore I could not get into any sort of program.
After the BK, I would automatically go back into default, at which time I will be contacted by them (default department) and I could discuss further options regarding paying back the loan/rehab, etc.
She said in the meantime, I could voluntarily start sending in payments.
A.) Would these voluntary payments be reflected on my credit report at all?
B.) Would it help my situation?
C.) Should I even bother until they contact me?
~Kim
After the BK, I would automatically go back into default, at which time I will be contacted by them (default department) and I could discuss further options regarding paying back the loan/rehab, etc.
She said in the meantime, I could voluntarily start sending in payments.
A.) Would these voluntary payments be reflected on my credit report at all?
B.) Would it help my situation?
C.) Should I even bother until they contact me?
~Kim
QUOTE(sirona71 @ Jul 11 2005, 11:57 AM)
Ok, I called Pheaa just now. She said that while I'm in BK, they cannot do anything...as far as send me any sort of communication or bill because it is against the law and therefore I could not get into any sort of program.
When is your BK going to be discharged?? Have you had your 341 yet?
After the BK, I would automatically go back into default, at which time I will be contacted by them (default department) and I could discuss further options regarding paying back the loan/rehab, etc.
She said in the meantime, I could voluntarily start sending in payments.
A.) Would these voluntary payments be reflected on my credit report at all?
Payments on a default loan are never reflected, bk or not.
B.) Would it help my situation?
If you can afford to make any payments it will help. Your interest will be capitalized a soon as you come out of BK. Anythng will help.
C.) Should I even bother until they contact me?
Student loans are notorious for not contacting people coming out of BK right away. I have heard of people not hearing anything for 3-4 years. Meanwhile the interest is clicking away. Research what you want to do and jump on it as soon as you can.
~Kim
When is your BK going to be discharged?? Have you had your 341 yet?
After the BK, I would automatically go back into default, at which time I will be contacted by them (default department) and I could discuss further options regarding paying back the loan/rehab, etc.
She said in the meantime, I could voluntarily start sending in payments.
A.) Would these voluntary payments be reflected on my credit report at all?
Payments on a default loan are never reflected, bk or not.
B.) Would it help my situation?
If you can afford to make any payments it will help. Your interest will be capitalized a soon as you come out of BK. Anythng will help.
C.) Should I even bother until they contact me?
Student loans are notorious for not contacting people coming out of BK right away. I have heard of people not hearing anything for 3-4 years. Meanwhile the interest is clicking away. Research what you want to do and jump on it as soon as you can.
~Kim
341 meaning....meeting of creditors? then yes. I had that June 1st. He recommended discharge.
Thanks for all the info. You've been a ton of help.
~Kim
Thanks for all the info. You've been a ton of help.
~Kim
Be sure that as soon as you discharge, you contact your SL lender again to set up a payment plan. You don't want to go back into garnishment!
Good luck.
Good luck.
I was in forbearance when I filed BK and I also noticed the IIB, $0 balance. I called Citibank and I was told that they automatically placed another forebereance for one year after the date I filed BK7.
QUOTE(pjm @ Jul 13 2005, 02:57 PM)
I was in forbearance when I filed BK and I also noticed the IIB, $0 balance. I called Citibank and I was told that they automatically placed another forebereance for one year after the date I filed BK7.
Keep in mind that your interest continues to accrue during forebearance.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.