Hey guys, this is my first time visiting this forum and I wanted to ask a quick question.
I, like a few others have taken advantage of financial aid. I have been taking classes since 1998 with no degree to show for it. I never really needed any loans because my pell grant took care of everything, but the way of my thinking then was and is detrimental to me now.
I have 35,528 worth of student loans that break down to the following:
STAFFORD UNSUBSIDIZED $12,000
DIRECT STAFFORD UNSUBSIDIZED $5,366
STAFFORD SUBSIDIZED $10,500
DIRECT STAFFORD SUBSIDIZED $6,562
FEDERAL PERKINS $1,100
They are currently in deferment w/ only one showing 60 days late because I am attending (and plan on finishing) cosmotology school. I have finally found my passion. What I want to know is when I finish school in early 07, I will have to ask for some additional deferments or forebearance because I won't be working and making steady income right out of school of course, so before I make a big mistake and mess up all that I am working to restore my credit now, what is a good course to take with this?
I don't want to end up getting garnished, ect. I don't know about loan consolidation or its benefit. I have about 4 or 5 different lenders between all my loans and paying each 50 dollars a month when my time comes won't be affordable.
Please help me before I make the same mistake others have. Let me know what you would've or should've done when you were in my current situation.
Thanks in advance.
Full Version: Student Loans in deferment
QUOTE(creditbuilders @ Feb 12 2006, 01:20 PM) 
Hey guys, this is my first time visiting this forum and I wanted to ask a quick question.
I, like a few others have taken advantage of financial aid. I have been taking classes since 1998 with no degree to show for it. I never really needed any loans because my pell grant took care of everything, but the way of my thinking then was and is detrimental to me now.
I have 35,528 worth of student loans that break down to the following:
STAFFORD UNSUBSIDIZED $12,000
DIRECT STAFFORD UNSUBSIDIZED $5,366
STAFFORD SUBSIDIZED $10,500
DIRECT STAFFORD SUBSIDIZED $6,562
FEDERAL PERKINS $1,100
They are currently in deferment w/ only one showing 60 days late because I am attending (and plan on finishing) cosmotology school. I have finally found my passion. What I want to know is when I finish school in early 07, I will have to ask for some additional deferments or forebearance because I won't be working and making steady income right out of school of course, so before I make a big mistake and mess up all that I am working to restore my credit now, what is a good course to take with this?
All of the loans listed above are eligible for low income/unemployment deferemnts of up to 3 years. Check with your lenders....this would be listed on all the websites.
I don't want to end up getting garnished, ect.
You would only be garnished if you allow your accounts to go into default.
I don't know about loan consolidation or its benefit. I have about 4 or 5 different lenders between all my loans and paying each 50 dollars a month when my time comes won't be affordable.
From the loan listings above, your payments would be way more than $50/loan a month. A $50 payment usually applies to a basic $2625 loan dispersment. Your Stafford unsub alone would be about $125/m if not more. Consolidation would be the best choice for you. Consolidation offers may repayment options
Please help me before I make the same mistake others have. Let me know what you would've or should've done when you were in my current situation.
Thanks in advance.
I, like a few others have taken advantage of financial aid. I have been taking classes since 1998 with no degree to show for it. I never really needed any loans because my pell grant took care of everything, but the way of my thinking then was and is detrimental to me now.
I have 35,528 worth of student loans that break down to the following:
STAFFORD UNSUBSIDIZED $12,000
DIRECT STAFFORD UNSUBSIDIZED $5,366
STAFFORD SUBSIDIZED $10,500
DIRECT STAFFORD SUBSIDIZED $6,562
FEDERAL PERKINS $1,100
They are currently in deferment w/ only one showing 60 days late because I am attending (and plan on finishing) cosmotology school. I have finally found my passion. What I want to know is when I finish school in early 07, I will have to ask for some additional deferments or forebearance because I won't be working and making steady income right out of school of course, so before I make a big mistake and mess up all that I am working to restore my credit now, what is a good course to take with this?
All of the loans listed above are eligible for low income/unemployment deferemnts of up to 3 years. Check with your lenders....this would be listed on all the websites.
I don't want to end up getting garnished, ect.
You would only be garnished if you allow your accounts to go into default.
I don't know about loan consolidation or its benefit. I have about 4 or 5 different lenders between all my loans and paying each 50 dollars a month when my time comes won't be affordable.
From the loan listings above, your payments would be way more than $50/loan a month. A $50 payment usually applies to a basic $2625 loan dispersment. Your Stafford unsub alone would be about $125/m if not more. Consolidation would be the best choice for you. Consolidation offers may repayment options
Please help me before I make the same mistake others have. Let me know what you would've or should've done when you were in my current situation.
Thanks in advance.
Thanks soooo much for your reply Lynn!!!!
Also, I have been told by many potential creditors that my student loans ARE NOT considered positive accounts. Do you think this is because they are in deferment or will this be the same thought process even when I do begin repaying them.
If not, I think this sucks a great deal because I know I would be frowned upon by creditors if they were in defualt and this would be used against me.
Any ideas on the best student loan consolidators? Where should I go and what should I be aware of or look out for? Also I am assuming that I should wait to consolidate until I exceed my unemployment deferment correct, or is there a more favorable time I should sign up?
Smooches to you all!!!
Also, I have been told by many potential creditors that my student loans ARE NOT considered positive accounts. Do you think this is because they are in deferment or will this be the same thought process even when I do begin repaying them.
If not, I think this sucks a great deal because I know I would be frowned upon by creditors if they were in defualt and this would be used against me.
Any ideas on the best student loan consolidators? Where should I go and what should I be aware of or look out for? Also I am assuming that I should wait to consolidate until I exceed my unemployment deferment correct, or is there a more favorable time I should sign up?
Smooches to you all!!!
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