Well I started the ugly, gut wrenching process of cleaning up my credit reports and the worse things on them results from ignoring my SL's
While the amount is enormous and I don't have enough organs to sell to pay them back, the worse part is over. I only had two places I had grovel with, ACS which owns my Sallie Mae loads and Direct Loans.
I rehabbed very nicely with ACS.
It turns out my other SL holder is Direct Loans and they have NOT gone into default. I thought they had. I spoke to Direct Loans and the woman back-dated my forbearance to last October, meaning I can consolodate now, which is good because they were collecting 8% interest as I put my head in the sand.
So bizarre-ish question is, should I call DL up and ask them to take off the nasties starting from last October since I was (as of Monday) in forbearance the last year? Or do I not understand this process and forbearance means that I get negative stuff reported to the CRAs?
Full Version: Bizarre Forbearance Question (trust me, its bizarre)
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should I call DL up and ask them to take off the nasties starting from last October since I was (as of Monday) in forbearance the last year? Or do I not understand this process and forbearance means that I get negative stuff reported to the CRAs?
Welcome to the Student Loan forum, HelloKitty. I understand the "burying your head in the sand" syndrome. But good for you that you rehabbed with ACS and contacted DL and got things worked out.
To answer your question, as I understand it, yes you should contact DL and ask them to remove the negatives starting from last October. When you are in forbearance, you are not considered to be in a delinquent or default status, so your credit report should be updated to reflect this.
[quote]Well I started the ugly, gut wrenching process of cleaning up my credit reports and the worse things on them results from ignoring my SL's
While the amount is enormous and I don't have enough organs to sell to pay them back, the worse part is over. I only had two places I had grovel with, ACS which owns my Sallie Mae loads and Direct Loans.
I rehabbed very nicely with ACS.
It turns out my other SL holder is Direct Loans and they have NOT gone into default. I thought they had. I spoke to Direct Loans and the woman back-dated my forbearance to last October, meaning I can consolodate now, which is good because they were collecting 8% interest as I put my head in the sand. At 8% either your Direct Loans are from the late 80's/early 90's or you already consolidated them once.
So bizarre-ish question is, should I call DL up and ask them to take off the nasties starting from last October since I was (as of Monday) in forbearance the last year? Unfortunately, even though they backdated the forbearance to last October, the lates are legitimate and it is very doubtful that Direct or any other servicer would remove them. Backdating forbearance does not relieve you of the fact that you did not pay your loans when you were supposed to. However, for the remainder of the forbearance Direct will not report any additional lates on you.
fla-tan
While the amount is enormous and I don't have enough organs to sell to pay them back, the worse part is over. I only had two places I had grovel with, ACS which owns my Sallie Mae loads and Direct Loans.
I rehabbed very nicely with ACS.
It turns out my other SL holder is Direct Loans and they have NOT gone into default. I thought they had. I spoke to Direct Loans and the woman back-dated my forbearance to last October, meaning I can consolodate now, which is good because they were collecting 8% interest as I put my head in the sand. At 8% either your Direct Loans are from the late 80's/early 90's or you already consolidated them once.
So bizarre-ish question is, should I call DL up and ask them to take off the nasties starting from last October since I was (as of Monday) in forbearance the last year? Unfortunately, even though they backdated the forbearance to last October, the lates are legitimate and it is very doubtful that Direct or any other servicer would remove them. Backdating forbearance does not relieve you of the fact that you did not pay your loans when you were supposed to. However, for the remainder of the forbearance Direct will not report any additional lates on you.
fla-tan
QUOTE
QUOTE
should I call DL up and ask them to take off the nasties starting from last October since I was (as of Monday) in forbearance the last year? Or do I not understand this process and forbearance means that I get negative stuff reported to the CRAs?
Welcome to the Student Loan forum, HelloKitty. I understand the "burying your head in the sand" syndrome. But good for you that you rehabbed with ACS and contacted DL and got things worked out.
To answer your question, as I understand it, yes you should contact DL and ask them to remove the negatives starting from last October. When you are in forbearance, you are not considered to be in a delinquent or default status, so your credit report should be updated to reflect this.
Cheech
Unfortunately, backdating a forbearance does not relieve the borrower of the consequences of their not paying on time. The lates from before the forbearance was granted will remain. However, there will be no additional lates added as long as the loan either remains in forbearance or the borrower makes on time payments.
fla-tan
Fla-tan - thank you so much for correcting me on that. You are the greatest. 
[quote] At 8% either your Direct Loans are from the late 80's/early 90's or you already consolidated them once.
Yep, this is correct sir. I have never consolidated them before.
My loans are from the early to mid 1990's and on.
However, I didn't have to start paying them back until I finished my income generating humanities PhD. *snort*
Thanks for all the advice. My crafty, debt laden mind was trying to weasel my way out of those SL baddies. Most of the baddies on my reports are SL's.
Yep, this is correct sir. I have never consolidated them before.
My loans are from the early to mid 1990's and on.
However, I didn't have to start paying them back until I finished my income generating humanities PhD. *snort*
Thanks for all the advice. My crafty, debt laden mind was trying to weasel my way out of those SL baddies. Most of the baddies on my reports are SL's.
Just for the record I spoke to DL this morning and no, they cannot remove the nasties on my CRA's since they post dated the forbearance.
They did tell me that I could consolidate my other loans held by ACS despite them being in default.
I hope I did the right thing by chosing not to do this until I rehab them. The reason is that I would like to get the nasties from them off my CRA's then consolidate.
They did tell me that I could consolidate my other loans held by ACS despite them being in default.
I hope I did the right thing by chosing not to do this until I rehab them. The reason is that I would like to get the nasties from them off my CRA's then consolidate.
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