FMS has my student loan which is in default. I owe $4600 and unemployed. They want me to get a pre paid debit card and pay them $53 per month. According to an income based calculator, since I am single and earn less than $15,000 a year, my payment is 0.

Is this true? I want to pay these people off , but my only income this year has been unemployment and I will owe taxes on that on next year's tax return

Do I call FMS and say, hey, I told you guys I have no job (they said I will be getting an extension on unemployent because of the economy...how do they know??) and I am not required to make payments. Is there a form to fill out for this program?

All help is appreciated!!!!!

You aren't eligible for IBR if you're in default. Once it's out of default, you can request IBR.

Great , now what????

You can arrange for an income-based repayment plan, even in default. The minimum payment, regardless of amount owed, is usually $25. Nine consecutive, timely payments will bring you out of default. Contact your lender and tell them to send you the paperwork to arrange an income-based payment plan for a DEFAULTED loan. IIRC, when you turn in the paperwork, you make a good-faith payment based on how much you feel like you can comfortably pay (this will NOT count towards your nine payments). I paid $20, and they worked out a plan for $25/month. After nine months, the loans are rehabbed and the defaulted loans come off your credit report. I say that's more than worth it for $25/month. Get on the phone and call your lender.

+1

With Mine they Waived "Good Faith" Payment and it was $50 a Month

Now Sallie Mae has them again

Now im going to DirectLoan for them to clean up my -Beautiful- Mess.... Just how I like it

Again, FMS called me just now. Always a different phone number. This time it was a manager from somewhere in Illinois. Anyway, she said she had my account because it is marked refusal to pay and something about wage garnishment and asked me about my job at the law firm. I said, I AM UNEMPLOYED because I was let go a year ago. My firm merged with another and my position was eliminated.

THEN she said if I want to pay it off, I can pay $3290 instead of the $4600 but it has to be done in three or four paymenst. I SAID I STILL DO NOT HAVE A JOB, rent is late this month and no unemployment extension in sight. Then she said if I can pay $53 a month, even if I have to go get a pre-paid debit card and do it by the 28th, that will stop the fees.

According to her, the federal goverment is near the end of the quarter and will add another 25 PERCENT TO THE BALANCE!! WTH!!!!

THEN she proceeds to tell my that other than garnishments, my SS# can be flagged, for stuff like liens on my property (GOT NONE) Social disability payments, unemployment and even suspension of driver's license. REALLY???? How true is this?