Hello. This is my first post, and I appologize if I missed it asked by someone already. I have a question regarding my dh's student loan. The loan has been in deferment or forbearance for most of the 7 years we've been out of school. It is currently 63 days past due. I sent in papers for a forbearance. We were denied due to "this loan has exceeded the amount of forbearance time the lender will extend." We were sent financial hardship papers. My husband's income is not VERY low. We cannot afford the payments, let alone the past due amount now accumulated. Any advise on how to deal with the lender?

Thanks!

sod

First let me welcome you to the Student Loan Forum. I hope that your time here will be educational (and we don't charge for it either). If your DH has never consolidated, then that may be an option. Who are his loans with now? Regulations for forbearance only require that forbearance be granted for 3 yrs maximum, though some servicers will grant them for much longer than that. I would need to know more about your loan situation before I could really recommend any solution, though I can say that at 63 days you are deliquent but are not close to default.


fla-tan

I hope I am replying correctly...DH has one student loan with ACS FFEL Borrower Services. I am glad to know that we aren't close to default! The letters they send say we are and I was getting very nervous! Anyway, not sure consolidation is an option. Perhaps with my loan with Sallie Mae? Can you consolidate spouse loans? Is this enough info for you? Thanks!!!

I'll second fla-tan's welcome. This is a great board with lots of helpful folks.

I'm not sure if you can consolidate if you only have one FFEL loan, but you should call and ask. I know Direct Loans and Sallie Mae will let you - never dealt with ACS. I also don't know the particulars about your loan, but even if ACS doesn't offer FFEL consolidation for one loan, you may be able to consolidate with someone else. I think there's a sticky on this board with links to consolidators.

I would definitely not advise anyone to consolidate a loan with their spouse. If something happens to one spouse, the other is responsible for the entire payment.

If you can't consolidate his loan, what about getting on an income-sensitive or graduated repayment plan? Is he in a field where he could possibly get the loans reduced (like a teacher)? Is he permanently disabled?

I've been down this road - maxed out my forbearance and deferment, kept racking up interest, and finally defaulted. I just got through rehab last year. It's a tough situation to be in, and one I wouldn't wish on anyone else. Student loans don't go away, so unless you rework your budget or bring in more income, reducing your payments somehow so you can keep them current is probably the best way to go.

It's hard to give specific advice since I don't know any particular information about your loan, but at least maybe this will help you figure out some options.

fla-tan

Hi. I'm a newbie too. My loans are consolidated with ACS and I know that if you can pay an amount above the interest owed for those late payments -- say you owe $400 and you pay $250-- then ACS will except that and reage your account. THat is they will deduct the amount of days late you are from say 63 days past due to 27 days past due. These are not exact numbers, but call customer service and talk to them. I hope that helps.

Thank you all so much for your help. No, he isn't in a field like teaching or disabled. I am going to contact ACS on Monday and see about the reaging thing. Hopefully they will work with me...I don't want to have a default on our hands...kinda defeats the work we're doing on the reports!

fla-tan - thanks for the update on the new rules about spousal responsiblity in case of disability or death. I didn't realize that had changed. I had double-checked at loanconsolidation.ed.gov and they still have the old info posted there.

You're right though, there are still other considerations. I'm assuming that in the case of divorce that the debt can still be collected from either spouse? And I'm assuming that combined loans affect future deferments or forbearances (i.e. both spouses must be eligible in order for a deferment or forbearance to be granted)?

I just got my consolidation stuff today and they said that if we combined our loans (spouse/self) and one of us became permanently dismembered or dead, that that person's loan would be forgiven, although the loan would remain in BOTH of our names. And if we were to get divorced, even if the court awarded one of us the student loan account, they would hold both of us responsible credit wise and payment wise.