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driggers

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  1. I actually graduated in May of 2008 and am currently in my grace period. So as far as I can tell from that page you linked I would still get the "in-school" or grace period rate from consolidating before the end of my grace period but that would make it to where I enter repayment. "Students who will be graduating soon should not use this loophole. Instead, they should wait until they are in the grace period to consolidate, in order to lock in the lower in-school interest rate and maximize the use of their grace period. " After consolidating I need to defer my loans on the basis of economic hardship or unemployment, as I have yet to obtain my "career" job yet. The main thing I hope I don't miss out on is my "Direct Consolidation Loan discount". Which is an 0.8% discount on my interest rate and it stays that way permanently after 12 on time payments. If I received that an the 0.25% discount for electron debit that would bring me down to 4.25% which is not to shabby, lower than what MMA and savings account were offering not too long ago.
  2. You're in just about the same situation as me. I have 11,625 that are variable and 11K fixed. . Are you still in you grace period b/c if you are you your rate should only be 3.61% Anyways I believe they're pretty strict at referring to outside websites, but with the interest rates you mention this is what it looks like for you. Loan Consolidation Calculator Results Loan Type Loan Balance Interest Rate Loan Term (Years) Minimum Payment Monthly Loan Payment Cumulative Payments Total Interest Paid Loan #1 Stafford (Subsidized) $11,000.00 4.21% 10 years $50 $112.47 $13,496.52 $2,496.52 Loan #2 Stafford (Subsidized) $11,000.00 6.80% 10 years $50 $126.59 $15,190.52 $4,190.52 TOTAL (Sum) $22,000.00 5.51% $239.06 $28,687.04 $6,687.04 CONSOLIDATION (Standard) $22,000.00 5.63% 10 years $50 $240.12 $28,814.84 $6,814.84 CONSOLIDATION (Extended) $22,000.00 5.63% 20 years $50 $152.89 $36,694.76 $14,694.76 CONSOLIDATION (Graduated) $22,000.00 5.63% 20 years $50 $140.82 (average) $33,796.96 $11,796.96 With Standard Repayment on your Consolidation Loan, it is estimated that you will need an annual salary of at least $28,814 to be able to afford to repay your loan. This estimate assumes that 10% of your gross monthly income will be devoted to repaying your student loans. If you use 15% of your gross monthly income to repay the loan, you will need an annual salary of only $19,210, but you may experience some financial difficulty. With Extended Repayment on your Consolidation Loan, it is estimated that you will need an annual salary of at least $18,347 to be able to afford to repay your loan. This estimate assumes that 10% of your gross monthly income will be devoted to repaying your student loans. If you use 15% of your gross monthly income to repay the loan, you will need an annual salary of only $12,231, but you may experience some financial difficulty. Extended Repayment reduces the monthly payment by $87.23 (36.3%) as compared with Standard Repayment, but increases the total interest paid over the lifetime of the loan by $7,879.91 (115.6%). Graduated Repayment has an initial payment of $120.06, a final payment of $211.51 and an average payment of $140.82. Although Graduated Repayment reduces the initial payment by $120.06 (50.0%) and the average payment by $99.30 (41.4%) as compared with Standard Repayment, it increases the total interest paid over the lifetime of the loan by $4,982.12 (73.1%). The following table summarizes the reductions in monthly payments and the increases in total interest paid. Loan Type Monthly Payment Monthly Payment Reduction Total Interest Increase in Interest CONSOLIDATION (Standard) $240.12 -- $6,814.84 -- CONSOLIDATION (Extended) $152.89 $87.23 (36.3%) $14,694.76 $7,879.91 (115.6%) CONSOLIDATION (Graduated) $140.82 $99.30 (41.4%) $11,796.96 $4,982.12 (73.1%) I don't feel like formatting but that you give you a good idea. I would recommend thinking about the extended pay option also lowering your payment by about $90. There is no reason to pay for the loan over 20 years and accrue all that interest, but this gives you a smaller payment first until you can afford to pay, then you can increase the amount you pay to whatever you desire at no penalty. Are you making any money at all while in a foreign country? Another deferral option is "economic hardship" which might be easier to prove for you. Don't forget all of those figures are rough from a consolidation calculator, would be lower if you're still in your grace period, and I'm not sure what other benefits you'd receive by consolidating. There aren't many nowadays, just a .25% reduction normally for auto-debit, perhaps a small rebate of some sort.
  3. I am currently in the process of Consolidation and Deferal of my student loans. They were all the the federal government. I have $11,625 variable and $11,000 in fixed. Repayment is suppose to begin December 7th so I assume that I am still in the grace period which would give me a 3.61% rate on the variable loan according to finaid.org. Consolidating them together gives me a rate of 5.25% I recently printed out a promissory note and mailed it the the US Department of Education to a PO Box in Lexington, KY. This was to consolidate the two loans (lock in the low variable grace period) and have a longer pay period (20 years) as my loans were over $20,000, thereby lowering my minimum payment. I understand I will pay more interest in the long run and so forth. My reasoning for the time being is that I won't even be able to afford the consolidated payment ($152.46) from what I got from the same website on a consolidation calculator. As soon as I am capable I plan on increasing the payments when I can afford to (unless I can do better than 5.25% in the market ). Hopefully I will hear back soon since I mail the promissory note about my consolidation. Next I need to defer the loan based on economic hardship or unemployment not sure which one. As I have a job but generally can't get more than 30 hours a weeks (which seem to make me fall in to the unemployment category). What are the best ways in going about the deferral process as December 7 is coming soon and I don't want to go into default but also won't be able to afford the payment with or without the consolidation. Lastly, the predicted interest rates on the same website have the variable rate predicted at 2.45% based on the recent numbers. This would bring the payment to just 144.67 which isn't a big drop but if I payed over the full 20 years it would save me $1900 in interest. Should I just defer and wait, or stick to my original plan. As I would be hoping rates stayed so low until the end of next May. Thanks for the suggestions, help and advice in advance.
  4. I did some minor changes, and took some things from some peoples Dv's and some from some others. I know I can make it more personalized, and I had one for that, but I dont want to give them any more info than they need. Afterall, they should be aware of the laws concerning these collections. Perhaps I'll go into more detail with the 2nd one. It's my understanding that as soon as I receive the green cards, I should send a letter out to the CRA's? All three of them CMRRR? Any good templates for these letters and their addresses? Thanks!
  5. Do you think this will be sufficient for a 1st DV? Joe Smith 69 Spooner Street Independence, IA 12345 NCO Financial Systems PO Box 15456 Wilmington, DE 19850-5456 November 26, 2007 CMRRR #: XXXXXXXXXXXXXXXXXX Account #: XXXXXXXXXXXXXXXXX To Whom It May Concern: I am writing to dispute your claims in their entirety of the above referenced account and request validation pursuant to the Fair Debt Collection Practices Act. This is not a refusal to pay, but a notice that your claim is being disputed. Be advised that I am not requesting “verification†that you have my mailing address. I am requesting a validation, that is, competent evidence that I have some contractual obligation to pay you. Also, please provide the original creditor's name, address, and date of last activity. I would also like to request, in writing, that no further telephone contact be made by your offices to my home or to my place of employment. All future communications with me must be done in writing and sent to the address noted in this letter. Sincerely, Joe Smith
  6. Thanks for all the help and suggestions. I didn't call her back. Although I got the daunting letter from NCO today. I'm going to send them the 1st DV letter on Monday. Then a letter to the CRA's for the 1-2 punch. Does anyone have any good templates for sending the letters to the CRA's? Also, do I need to send them to all 3, if not how do I know who to send the letters to? Also to anyone wondering the address for NCO is, well there is two on the letter, I'm assuming one is for mailing payments and the other is their physical address Payment address: NCO Financial Systems PO Box 15456 Wilmington, DE 19850-5456 Physical Address: 1804 Washington Blvd Mailstop 450 Dept 03 Baltimore, MD 21230 Does anyone have anything different? I know I shouldn't send the DV to the PO Box because who would be there to sign for it with the CMRRR... Thanks again! PO Box
  7. Long story short, somehow my account got turned over to NCO. I received a call today and I was told that the account would soon goto a lawyer and get a extra 20% tacked on. Normally I wouldn't believe this, but this women seemed very genuine and seemed like she wanted to help me. She said I had two option so the account wouldn't goto the lawyer: 1. Pay a settled amount (not possible since I'm still in college) 2. She originally said I'd have to pay 10% of the balance which is $410 and then I could be on a hardship program and pay X amount (I said $75) a month for 90 days, then we'd reevaluate my situation, which will be the same since I'll still be in school. I said I couldn't afford this, and got her down to $205 then the hardship program. I'm not sure what to do. I have not received any sort of letter, just a call from NCO, I swear she said her name was Ms. Hughes. She also said that once contact is made she only has 72 hours on the account before it gets sent elsewhere. Should I pay some amount to get them to not send the account off, or is that just a total load of bs? And then send out the 1st dv letter again and then when I get the confirmation, send out a letter to the CSR's for a 1-2 punch (which I couldn't do last time because it was outside the 30 day window). Apparently NCO got control of my account last Monday. Thanks for the help in advance, I don't know what to believe!
  8. Long story short, somehow my account got turned over to NCO. I received a call today and I was told that the account would soon goto a lawyer and get a extra 20% tacked on. Normally I wouldn't believe this, but this women seemed very genuine and seemed like she wanted to help me. She said I had two option so the account wouldn't goto the lawyer: 1. Pay a settled amount (not possible since I'm still in college) 2. She originally said I'd have to pay 10% of the balance which is $410 and then I could be on a hardship program and pay X amount (I said $75) a month for 90 days, then we'd reevaluate my situation, which will be the same since I'll still be in school. I said I couldn't afford this, and got her down to $205 then the hardship program. I'm not sure what to do. I have not received any sort of letter, just a call from NCO, I swear she said her name was Ms. Hughes. She also said that once contact is made she only has 72 hours on the account before it get since elsewhere. Should I pay some amount to get them to not send the account off, or is that just a total load of bs? And then send out the 1st dv letter again and then when I get the confirmation, send out a letter to the CSR's for a 1-2 punch (which I couldn't do last time because it was outside the 30 day window). Apparently NCO got control of my account last Monday. Thanks for the help in advance, I don't know what to believe!
  9. almost no need to call pryan was pretty much right on. I basically have 3 options to choose from: 1. Pay the settled amount of around $2K, and my credit report will be updated as "Paid as settled", to change from the what it says now as "Collection Agency", I would assume this would re-age it, so I'd have a good 7 years. And then any time I want a relationship with AMEX, I'll have to pay off the rest of the balance. 2. I start making small payments now while I'm in college to keep the account current, then when I graduate and have a career I can start making greater payments, and then once it is paid off in full, I will receive the AMEX Optima 30 days after completion of paying off my old balance. Hopefully by then I would have rebuild my credit. 3. This is the more risky thing, not do anything and it'll get sent to collections again. But since I'll actually know when it gets sent, and how to approach the situation with the 1-2 punch, and just hope and pray I can get enough violations to just get rid of it all. Although who knows if it will be sent back to AMEX after that, as after my 2nd DV to the CA is when they sent it back to the OC. Thanks for the help!
  10. I am also wondering about paying each month. I received a letter several days ago from AMEX collection department offering a settlement of half the amount I owed but that I'd have to pay in full. There is no way I can pay the settlement of $2000 in full. I am still in college and don't have that kind of money to spend. There is absolutely no mention of the OASIS program though. Any suggestions on what to do when I call? Ask to be in the OASIS program and hopefully pay 5% a month until I graduate and have a real job?!?
  11. no payments, they would just want to have it payed off in full (the offer they gave me) by 10/24
  12. Thanks pryan. So I guess they would give me something similar to the nature of my AMEX Blue card back. and then later when I wanted to apply for other AMEX cards, id have to pay off the remaining $2000, this would be once I graduated from college and could afford to. What would yall suggest doing? In a perfect world I'd pay off the $2000 and start over once I confirmed the details concerning their offer, but I dont have $2000 to give. What happens normally if I don't accept the offer? Does it get sent to collections again, and the whole process starts over? Except this time I am more likely to use the 1-2 punch with the new CA?

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