I owe roughly 30k in SL's. DH stated he was making payments and really wasnt (we were separated and I stupidly believed him). Now we are divorced and all the loans are approximately 1 year past due. Some I am already getting contacted from CA's for full amounts. Some of the lenders have been trying to help me get into a deferrment arrangement. They want me to provide proof of my income which is a problem because I work jus a few hours a week UNDER THE TABLE. So I have no recent proof of income. My last pay stub was 3 months ago and they want the pay stubs to be no more that 2 months old. Should I just tell them I lost my job? I only make about $800 a month anyway - not including the child support that the now ex-DH pays, which really isnt that much either.

Also, since the SL'a are scattered across several lenders and there are several loans, should I consider consolidation? What about this rehab stuff? Would I have to enter into a rehab with each lender? Can you consolidate loans while you are in Rehab or deferrment? I've been reading where the rehab really seems to help with the credit scores, even gets thing back to positive, so that seems it would be ideal, but is it possible to rehab all of the loans, consolidate them while you are in the 12 month period and then have just one payment? It seems like there are just too many options right now....

HELP :?

So are you in default on all these loans?

Deferment is one option if they are offering it to you. Ask the lenders if entering a deferement would remove any negatives (like late pay) from your report. That could be a good option, because you wouldn't have to go through a one-year rehab period.

If it's consolidation vs. rehab, I would rehab first, then consolidate. Consolidating won't remove the negatives from your reports, rehab will. If you consolidate during rehab, then you won't be in rehab anymore. You'd have to rehab with each lender or CA that holds the loans.

Make a list of each loan you have, who holds it, and the current status of the loan. With your limited income, the amount you would pay during rehab should be minimal, but it will require some coordination on your part to be sure that the total amount you are paying is something you can afford. Rehab is strictly regulated and lenders or CAs are required to allow you to rehab if you ask for it. It's a very good option for defaulted student loans.