Hi--I just found this board a couple of days ago, and already I have learned quite a bit. This is my situation-

I have a large consolidated loan (around $100k), and about 30k in private loans. I consolidated through Sallie Mae in 1999, who had my loans at the time of consolidation (although they may not have made the loans originally-I don't remember). Even after consolidation, I had to use Income sensitive forebearance and no payment forebearance, because I simply did not have enough money to pay the monthly payments, since I still had private loan payments as well.

We are a single income family of 5. My wife is not working now, and the plan was for her to go back to work part time when all the kids were in elementary school. That will be about 4 years from now. (If she worked part-time now, we would have to pay day care, which would consume the earnings she would make).

It was my impression from discussions with Sallie Mae shortly after consolidation that I had a certain amount of months of no payment forebearance, and a certain amount of months of Income Sensitive Repayment. I was paying a reduced amount on the Income Sensitive Repayment plan, and I noticed while looking at my account online that it was now showing that I owed the full monthly payment beginning this month. I called Sallie Mae and they informed me that my forebearances (no payment/Income Sensitive), were only limited to a 5 year cumulative total, and that I have used all of it, and that now I need to pay the full payment, which is a little over $600.00 a month more than I am currently paying. I don't have $600 a month to come up with.

I do have every intention of paying this loan back--I just want to be able to buy more time until my wife can work part time and we can use that money to pay the loan. So, after reading some of the threads here, my conclusions and questions to you before I get back with Sallie Mae are as follows:

1. It appears that Sallie Mae would not be required to give me income contingent payments over the life of the loan, as it appears Direct Loan would do (with a tax hit at the end). If I am incorrect about this, please let me know, as this would be my preference.

2. If the above option is not availiable, it appears if this loan goes into default, I will be able to force them into income sensitive repayment at least during the rehab process. I am trying to avoid default, however. has anyone had any success at negotiating a lower temporary payment for a limited time? I can try and work my budget around and do some things to come up with some more payment money, but $600 more a month is not going to happen right now.

3. If it does default and I rehab, will I be back to square one? Will they just tell me that I don't have any more ISR time left and I have to make the payments, and will it again fall back in default? What exactly happens after a consolidated loan rehab with regard to payment options? Even if they end up garnishing my wages, it appears they will be limited to 15% of after tax income, which will still be $300.00 a month less than what they are trying to have me pay now.

Thanks for reading this and helping me. Once again, I don't want to look like I am trying to avoid my obligation--I just need more time. I want to get some good outside information before I call Sallie Mae back and try to work something out with them.

Hiya Daredevil,

I'm no expert - this is my first post! BUT....

I was just on the phone with my guarantor (NYHES) yesterday. The woman had mentioned something about some federal consolidation program with a 20 year term - lower payments.

However, given you've consolidated once, I don't know that you can again. I think I saw somewhere here that you can only do it once but I have no idea if that is accurate or applicable to the program the woman mentioned yesterday. I got NO detail on it because it's not an option for me at this point. I've gotta do rehab

Sorry I can't be of more help. Have you been to http://www.ombudsman.ed.gov/repayment.html yet?

With the loan amount you have, I am going to assume you are already on a 30-year payment plan.

I would call Direct Loans and see if you can re-consolidate with them to get Income Sensitive repayment. I am not sure if it works for consolidated loans, but I know Direct Loans will let you move other student loans to them if you lender does not offer ICR for some reason. The number is 1-800-848-0979.

Hope that helps!

If you default on a consolidated loan, you CAN reconsolidate it.

The term ICR or income contingent have nothing to do with rehab. ICR is a Federal Direct Consolidation term, nothing else. If you default, you are entitled to "reasonable and affordable payments"...that is the catch phrase.

Have you been in deferment or forebearance?? They are different terms.