Hello All,

I started a topic a little while back and wanted to fill everyone in. http://creditboards.com/forums/index.php?showtopic=77774 Okay rehab is finished and boy was it worth it. If anyone is in default I suggest going this route. When the loans went into default the principal balance on them was around 51k with another 4k in interest, when they got sent to the CA they tacked on fees that brought the total to close to 69K. Ouch right? That's what I thought too. We worked out a payment arrangement with a down of $2000 and payments of $374/month. Now that the loans have been rehabbed the fees have been removed and we ended up paying down a lot of interest. Close to 4k according to the Dept of ED. Now we can deduct $2500 from our taxes which is nice and now were ready to consolidate at the lowest rates in history. I calculated that if we go 25 years on the repayment the new monthly payment will only be $292. It takes time but it's worth it. Anyone in default now should do the same and consolidate next year. The rates will still be traditionally low and should really work out for you.

Thanks,

Patrick

Thanks for the info. Where all your loans with the same agency? I think mine will be more difficult to track down and negotiate.

All you have to do is call 1-800-4FEDAID to find your loans.




FYI....CA's dont tack on the collection fees. They are assessed to your account by the guarantor when you default. CA's no not do any loan calculations! Everything comes from the loan holder.

I love to hear the success stories. I'm 6 months into my rehab and all seems to be going well. I've read about some people fighting the downpayment/earnest money demands to rehab but when they said they would need a $900 first payment I had ready cash on hand so it was no biggie. My monthlies are $301.

-F