I am trying to rehab a Salliemae loan that has defaulted. I called the CA that has the account now and was told that I could not rehab this particular loan as it has been in default too long. I was told that I needed to pay the balance $943 or it goes to the next step which is they apply the "new" 24% interest rate to the balance and it will go up to around $2000.
I want to know what my options are. I can never get in contact with Salliemae directly as hold times are crazy. I will bite the bullet and try to do it today, but in the meantime, anyone have any suggestions?
Full Version: Rehab a defaulted account
QUOTE(terrance_m40 @ Jan 29 2007, 10:50 AM) 
I am trying to rehab a Salliemae loan that has defaulted. I called the CA that has the account now and was told that I could not rehab this particular loan as it has been in default too long. I was told that I needed to pay the balance $943 or it goes to the next step which is they apply the "new" 24% interest rate to the balance and it will go up to around $2000.
There is no such thing as a long that has been in default too long. Unless you have previously rehabed this account, any federal loan can be rehabbed. However if you only owe $943, you may not be able to rehab. After the required rehab payments, you need to have a remaining balance of around $1000 left on the loan to rehab.
No such thing as a 24% interest rate. It may be collection fees, but definately not interest.
Who is the loan holder now?? SM was your lender. Who guaranteed the loan??
I want to know what my options are. I can never get in contact with Salliemae directly as hold times are crazy. I will bite the bullet and try to do it today, but in the meantime, anyone have any suggestions?
Dont waste your time calling SM. They filled a claim with your guarantor and they are paid off. They are no longer involved.
There is no such thing as a long that has been in default too long. Unless you have previously rehabed this account, any federal loan can be rehabbed. However if you only owe $943, you may not be able to rehab. After the required rehab payments, you need to have a remaining balance of around $1000 left on the loan to rehab.
No such thing as a 24% interest rate. It may be collection fees, but definately not interest.
Who is the loan holder now?? SM was your lender. Who guaranteed the loan??
I want to know what my options are. I can never get in contact with Salliemae directly as hold times are crazy. I will bite the bullet and try to do it today, but in the meantime, anyone have any suggestions?
Dont waste your time calling SM. They filled a claim with your guarantor and they are paid off. They are no longer involved.
Thanks for the response. The Creditor listed is SLM Financial. The total amount due now is $991. The CA is Accounts Receivable Management. This loan has not been rehabbed before. He did say that the "new interest rate" was 24%, I didn't believe him either. The $2300 balance would include interest and late fees.
It was one of 3 loans totaling $5000. This loan was unsubsidized, the other 2 weren't. The other two are in a deferment status right now. I would really like to get this taken care of as I am looking to purchase a home in about 3 or 4 months. The CA does not appear on my credit reports currently. What are my options?
I am trying to rehab a Salliemae loan that has defaulted. I called the CA that has the account now and was told that I could not rehab this particular loan as it has been in default too long. I was told that I needed to pay the balance $943 or it goes to the next step which is they apply the "new" 24% interest rate to the balance and it will go up to around $2000.
There is no such thing as a long that has been in default too long. Unless you have previously rehabed this account, any federal loan can be rehabbed. However if you only owe $943, you may not be able to rehab. After the required rehab payments, you need to have a remaining balance of around $1000 left on the loan to rehab.
No such thing as a 24% interest rate. It may be collection fees, but definately not interest.
Who is the loan holder now?? SM was your lender. Who guaranteed the loan??
I want to know what my options are. I can never get in contact with Salliemae directly as hold times are crazy. I will bite the bullet and try to do it today, but in the meantime, anyone have any suggestions?
Dont waste your time calling SM. They filled a claim with your guarantor and they are paid off. They are no longer involved.
It was one of 3 loans totaling $5000. This loan was unsubsidized, the other 2 weren't. The other two are in a deferment status right now. I would really like to get this taken care of as I am looking to purchase a home in about 3 or 4 months. The CA does not appear on my credit reports currently. What are my options?
QUOTE(LynnInMN @ Jan 29 2007, 02:43 PM)
QUOTE(terrance_m40 @ Jan 29 2007, 10:50 AM)
I am trying to rehab a Salliemae loan that has defaulted. I called the CA that has the account now and was told that I could not rehab this particular loan as it has been in default too long. I was told that I needed to pay the balance $943 or it goes to the next step which is they apply the "new" 24% interest rate to the balance and it will go up to around $2000.
There is no such thing as a long that has been in default too long. Unless you have previously rehabed this account, any federal loan can be rehabbed. However if you only owe $943, you may not be able to rehab. After the required rehab payments, you need to have a remaining balance of around $1000 left on the loan to rehab.
No such thing as a 24% interest rate. It may be collection fees, but definately not interest.
Who is the loan holder now?? SM was your lender. Who guaranteed the loan??
I want to know what my options are. I can never get in contact with Salliemae directly as hold times are crazy. I will bite the bullet and try to do it today, but in the meantime, anyone have any suggestions?
Dont waste your time calling SM. They filled a claim with your guarantor and they are paid off. They are no longer involved.
How did this one default and not the other ones??? When did this default??
You are going to have a hell of a time getting a good mortgage rate with a federal default on the books. Right now with this in default, you are ineligible for FHA/VA mortgages, not to mention most other lender will jack your rate for this. So if this defaulted in error, you need to get on this ASAP!
You are going to have a hell of a time getting a good mortgage rate with a federal default on the books. Right now with this in default, you are ineligible for FHA/VA mortgages, not to mention most other lender will jack your rate for this. So if this defaulted in error, you need to get on this ASAP!
This loan was an unsubsidized loan. The Lender is SLMF-RIPIC (NM-ECMC). When I look on the salliemae website it still states that this particular loan is in repayment status and not in default. Should I look at their website www.ecmc.org and just give them a call to figure out a payoff? Since the balance for this one is under $1000, can I still do a rehab? Any chance of negotiating a settlement to have the negative TL removed?
Oh and the interest rate is 17.25% currently.
Student loans have never been at 17 plus %, at least not federal ones. This sounds like it is a private loan.
Either way you cannot rehab under $1000 nor will they remove the tradeline for a paid in full or settlement.
Either way you cannot rehab under $1000 nor will they remove the tradeline for a paid in full or settlement.
It's definitely an ECMC loan. Am I just stuck with it being on my report? Should I just pay it off now or do I have any other options. The good 
thing is I know it is still listed on sallie mae's website in repayment status. But it reports as being written off. Is there any way to make this disappear? Thanks again for all of your help.
thing is I know it is still listed on sallie mae's website in repayment status. But it reports as being written off. Is there any way to make this disappear? Thanks again for all of your help.
QUOTE(terrance_m40 @ Jan 29 2007, 02:37 PM)
It's definitely an ECMC loan. Am I just stuck with it being on my report? Should I just pay it off now or do I have any other options. The good thing is I know it is still listed on sallie mae's website in repayment status. But it reports as being written off. Is there any way to make this disappear? Thanks again for all of your help.
thing is I know it is still listed on sallie mae's website in repayment status. But it reports as being written off. Is there any way to make this disappear? Thanks again for all of your help.You need to call ECMC....written off means default so you are not in repayment. It wont disappear.
This is starting to get frustrating. I call ECMC and I was told that I do not have a loan with them in their system. When I look at my loan summary for this loan on Salliemae's website this is what appears:
Program/Lender
Career Training-UNSUB/
SLMF-RIPIC (NM-ECMC)
I'm not sure what I do at this point. I will try to call salliemae's customer service direct and go from there. Any suggestions?
My credit reports has it reporting as a bad debt charge off
Program/Lender
Career Training-UNSUB/
SLMF-RIPIC (NM-ECMC)
I'm not sure what I do at this point. I will try to call salliemae's customer service direct and go from there. Any suggestions?
My credit reports has it reporting as a bad debt charge off
Who did the CA say they were representing?? It should be on any correspondance you have received them them. Call the CA if you have not received any notices yet.
The CA said that the creditor is SLM Financial. They are offering to let me pay it off for $991.16. According to the CA, that balance will increase if I do not pay it off by Feb 8. It will increase by $346 if I do not pay it off by then.
I can pay it off, I'm just concerned about how it will reflect on my credit scores. How much of a difference will it make it terms of points? What would you do if you were me?
I can pay it off, I'm just concerned about how it will reflect on my credit scores. How much of a difference will it make it terms of points? What would you do if you were me?
This really sounds like a private student loan thru SM, not a sub or unsub loan. I would say grab the settlement while you can. You do not have rehab rights with this type of loan....these type are more like consumer loans, except they are non dischargeable in BK. The damage to your credit is done and if you plan on getting a house, this will have to be paid off.
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