I have student loans dating back from 1999, 2000, and 2002 from sallie mae. I have been sent two letters from a local collection agency if I do not make payment they are going to seek legal action. I recently have been trying to clean up my credit but I do not know what to do. I own my own small business and it does not make alot of money and I was in school for one class last semester. I would like to know if I should contact them and is there any way I could go back to a defferment at this point? The total amount is 29,000.
Please help cause I cannot afford to get garnished and I need to move out of my apt in October and was hoping to buy a starter home.
On a side note: I have raised my scores a little bit since I have decided to change my life. This is what I have done in a month. But completly new at the credit clean up game.
MY Credit scores May 30th
568 Experian Plus Score
550 TransUnion
550 Equifax
My Credit Scores July 4th
Experian Plus Score 576
TransUnion is 553
Equifax 550
Full Version: Help me with my student loans
QUOTE(coffeeboob @ Jul 10 2007, 03:57 AM) 
I have student loans dating back from 1999, 2000, and 2002 from sallie mae.
Federal or private???
I have been sent two letters from a local collection agency if I do not make payment they are going to seek legal action.
What does the letter say? Federal loans generally do not take legal action, but they can garnish without a court order.
I recently have been trying to clean up my credit but I do not know what to do. I own my own small business and it does not make alot of money and I was in school for one class last semester. I would like to know if I should contact them and is there any way I could go back to a defferment at this point? The total amount is 29,000.
Sounds like you are in default and thus you do not qualfiy for deferment. Have you been making any payments?? Was the loan deferred properly?
Please help cause I cannot afford to get garnished and I need to move out of my apt in October and was hoping to buy a starter home.
You may need to put off buying a home until this is under control. Federal defaults is an automatic denial for FHA/VA mortgages and can cause jacked up rates for others.
On a side note: I have raised my scores a little bit since I have decided to change my life. This is what I have done in a month. But completly new at the credit clean up game.
MY Credit scores May 30th
568 Experian Plus Score
550 TransUnion
550 Equifax
My Credit Scores July 4th
Experian Plus Score 576
TransUnion is 553
Equifax 550
Federal or private???
I have been sent two letters from a local collection agency if I do not make payment they are going to seek legal action.
What does the letter say? Federal loans generally do not take legal action, but they can garnish without a court order.
I recently have been trying to clean up my credit but I do not know what to do. I own my own small business and it does not make alot of money and I was in school for one class last semester. I would like to know if I should contact them and is there any way I could go back to a defferment at this point? The total amount is 29,000.
Sounds like you are in default and thus you do not qualfiy for deferment. Have you been making any payments?? Was the loan deferred properly?
Please help cause I cannot afford to get garnished and I need to move out of my apt in October and was hoping to buy a starter home.
You may need to put off buying a home until this is under control. Federal defaults is an automatic denial for FHA/VA mortgages and can cause jacked up rates for others.
On a side note: I have raised my scores a little bit since I have decided to change my life. This is what I have done in a month. But completly new at the credit clean up game.
MY Credit scores May 30th
568 Experian Plus Score
550 TransUnion
550 Equifax
My Credit Scores July 4th
Experian Plus Score 576
TransUnion is 553
Equifax 550
It sais federal Family Education is determing to see if an admin wage garnishment should be brought against me. Unless they hear from me I will be forwarded to deposition. This is from general revenue company and after searching all night I saw someone make reference to them but not much info about them.
There is a receipt on the bottom that I can make a payment with credit card, but I am afraid to give them any info but can start making payments but probably not the amount they would want which would be WHAT I do not know. Thanks for your help in advance..Lyn in MN I am just really worried right now so any help is greatly appreciated.
There is a receipt on the bottom that I can make a payment with credit card, but I am afraid to give them any info but can start making payments but probably not the amount they would want which would be WHAT I do not know. Thanks for your help in advance..Lyn in MN I am just really worried right now so any help is greatly appreciated.
QUOTE(coffeeboob @ Jul 10 2007, 08:34 AM)
It sais federal Family Education is determing to see if an admin wage garnishment should be brought against me. Unless they hear from me I will be forwarded to deposition. This is from general revenue company and after searching all night I saw someone make reference to them but not much info about them.
There is a receipt on the bottom that I can make a payment with credit card, but I am afraid to give them any info but can start making payments but probably not the amount they would want which would be WHAT I do not know. Thanks for your help in advance..Lyn in MN I am just really worried right now so any help is greatly appreciated.
There is a receipt on the bottom that I can make a payment with credit card, but I am afraid to give them any info but can start making payments but probably not the amount they would want which would be WHAT I do not know. Thanks for your help in advance..Lyn in MN I am just really worried right now so any help is greatly appreciated.
Then you are in default on federal loans. Have you contacted the CA to try to set up a voluntary payment plan?? They do not negotiate via mail. You must call them.
Being self employed, they cannot garnish you. The wage garnishment they speak of does not require a court order or deposition.
Either consolidate or rehab...whichever one you think is affordable for u.
But its going to take time to get ur scores up.
Student loan TLs really hold you down because they stay on the credit report and can't be easily disputed like credit cards. I think you have to wait 7 yrs after 1st delinquency for them to fall off ur reports.
Sorry to paint a morbid picture. I'm going thru similar probs.
But its going to take time to get ur scores up.
Student loan TLs really hold you down because they stay on the credit report and can't be easily disputed like credit cards. I think you have to wait 7 yrs after 1st delinquency for them to fall off ur reports.
Sorry to paint a morbid picture. I'm going thru similar probs.
Yes, if you haven't already, consolidate them, that will get the old TL's paid and hopefully get the payments down where you can afford them.
After a year or so of on time pay those old TL's won't hurt so bad, if at all.
After a year or so of on time pay those old TL's won't hurt so bad, if at all.
QUOTE(blinky @ Jul 11 2007, 03:45 PM)
Yes, if you haven't already, consolidate them, that will get the old TL's paid and hopefully get the payments down where you can afford them.
You don't want to consolidate, Rehabilitation is a far better option. Not only does consolidation shut you out for other programs if you need them (Income Contingent Repayment) but it will not remove any negative tradelines from your credit. It will show as "Settled"
Once you complete rehabilitation the negative tradeline showing federal default will be removed from your CR's in about 60-90 days.
You cannot be garnished if you are a 1099 (self-employed) but if your loans have been defaulted at least 3 years and there are no judgements, the agency will most likely attempt litigation. Ed could put a lien on your business or (I think) vehicle.
After a year or so of on time pay those old TL's won't hurt so bad, if at all.
You don't want to consolidate, Rehabilitation is a far better option. Not only does consolidation shut you out for other programs if you need them (Income Contingent Repayment) but it will not remove any negative tradelines from your credit. It will show as "Settled"
Once you complete rehabilitation the negative tradeline showing federal default will be removed from your CR's in about 60-90 days.
You cannot be garnished if you are a 1099 (self-employed) but if your loans have been defaulted at least 3 years and there are no judgements, the agency will most likely attempt litigation. Ed could put a lien on your business or (I think) vehicle.
After a year or so of on time pay those old TL's won't hurt so bad, if at all.
Please someone correct me if I'm wrong on something, I'm sleepy! LoL
QUOTE(InstantNoodles @ Jul 11 2007, 07:24 PM)
QUOTE(blinky @ Jul 11 2007, 03:45 PM)
Yes, if you haven't already, consolidate them, that will get the old TL's paid and hopefully get the payments down where you can afford them.
You don't want to consolidate, Rehabilitation is a far better option. Not only does consolidation shut you out for other programs if you need them (Income Contingent Repayment)
I thought ICR was only on DOE loans, not banks or others. I also think you can get a federal direct consolidation loan for those other loans that would allow an ICR repayment if needed.
but it will not remove any negative tradelines from your credit. It will show as "Settled"
Why would it show settled? why wouldn't it show transferred to another lender?
Unless OP is in actual default in which case you would probably be correct.
Once you complete rehabilitation the negative tradeline showing federal default will be removed from your CR's in about 60-90 days.
Wish I'd known that....
You cannot be garnished if you are a 1099 (self-employed) but if your loans have been defaulted at least 3 years and there are no judgements, the agency will most likely attempt litigation. Ed could put a lien on your business or (I think) vehicle.
After a year or so of on time pay those old TL's won't hurt so bad, if at all.
Please someone correct me if I'm wrong on something, I'm sleepy! LoL
QUOTE(blinky @ Jul 11 2007, 08:07 PM)
QUOTE(InstantNoodles @ Jul 11 2007, 07:24 PM)
QUOTE(blinky @ Jul 11 2007, 03:45 PM)
Yes, if you haven't already, consolidate them, that will get the old TL's paid and hopefully get the payments down where you can afford them.
You don't want to consolidate, Rehabilitation is a far better option. Not only does consolidation shut you out for other programs if you need them (Income Contingent Repayment)
I thought ICR was only on DOE loans, not banks or others. I also think you can get a federal direct consolidation loan for those other loans that would allow an ICR repayment if needed.
but it will not remove any negative tradelines from your credit. It will show as "Settled"
Why would it show settled? why wouldn't it show transferred to another lender?
Unless OP is in actual default in which case you would probably be correct.
Once you complete rehabilitation the negative tradeline showing federal default will be removed from your CR's in about 60-90 days.
Wish I'd known that....
You cannot be garnished if you are a 1099 (self-employed) but if your loans have been defaulted at least 3 years and there are no judgements, the agency will most likely attempt litigation. Ed could put a lien on your business or (I think) vehicle.
After a year or so of on time pay those old TL's won't hurt so bad, if at all.
Please someone correct me if I'm wrong on something, I'm sleepy! LoL
WOW thank you to ALL of you. I feel so much better. As far as a lien on my business, I think that would be a litte difficult as I am a virtual business online and use my personal laptop and I am a sole proprietor so there is no merchandise...I create what I sell online and I own a 1986 vehicle. Anyhow, where do you go to start the rehab process? Is there anywhere online?
I want to start rehab first thing in the morning. What steps do I need to take, I do not know who to contact first and are there any right or wong things to do. I want to do this right the first time. Please help.
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