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  1. How to Rehabilitate Your Loans You will need to request rehabilitation from your loan holder. You may be dealing with a collection agency. Regardless of who you are dealing with, you should insist on getting the agreement in writing. As of July 1, 2014, the law requires written rehabilitation agreements. Be sure and read everything before signing. The main item to negotiate is how much you will have to pay every month. It has been very common for collectors to tell you that you have to pay an amount beyond what you can afford. This is wrong. The law says that you only have to pay what is reasonable and affordable. There is no minimum amount that the loan holder must charge. There are new regulations effective July 1, 2014 that create a new system to help ensure that borrowers are paying only what is “reasonable and affordable” for them. Beginning July 1, 2014, here is how the new system should work: The loan holder should discuss your options, including the pros and cons of loan rehabilitation and loan consolidation. If you decide on rehabilitation, the loan holder should start out with the amount you would pay under the IBR formula. This is the IBR formula for older loans, based on the borrower making student loan payments of 15% of disposable income. This does not mean that you are eligible for IBR while you are still in default. Instead, the loan holder will use the 15% IBR formula to determine a reasonable and affordable payment amount. If you successfully rehabilitate the loan, you can then request an income-driven repayment plan. If you object to this amount, you can negotiate a different payment, but you must use a standard form to provide additional income and expense information. Understanding the New Rehabilitation System as of July 1, 2014 Unless you object, the loan holder will use the 15% IBR formula to determine your reasonable and affordable payment amount. This does not mean that you are eligible for IBR. You may be able to get into the IBR program, but only after you complete the rehabilitation program. You can object to the IBR payment and request a lower amount based on your financial circumstances. If you take this route, be advised that your payment will likely increase after the rehabilitation period. At that point, you can request deferment if you qualify or forbearance if you cannot afford the regular IBR payments, but these are time limited options. You should think carefully about whether it is a good time to rehabilitate if you don’t think you will be able to afford the IBR payments. The loan holder will make an initial estimate of your reasonable and affordable payment based on the information you give them about your income. You will have to follow up and provide documentation of your income in order to get the rehabilitation started. The loan holder may tell you that you have to make a “good faith” payment while they are waiting for you to submit documentation of your income. This is your choice. You do not have to make this payment. However, you may want to do this so that you can get started with the nine month rehabilitation period. Be advised that these payments will count toward the nine months only as long as the final rehabilitation payment amount is not higher than the amount you are paying as a “good faith” payment. If you are having your wages garnished, you have a one-time right to have the garnishment suspended if you make five required rehabilitation payments. You may successfully make it through the rehabilitation process only to find that the loan holder has put you in a standard repayment plan with payments that you cannot afford. You should carefully track when the rehabilitation period is over. Once you have rehabilitated, your loan is out of default and you are eligible for any of the pre-default flexible repayment plans. Arrange for an affordable repayment plan with your lender so that the transition out of rehabilitation is as smooth as possible. Income-based repayment is available in both the FFEL and Direct loan programs. There will usually be a new servicer after your rehabilitated loan is sold. It is a good idea to ask your current loan holder to give you the name of the new servicer as soon as possible so that you can arrange for an affordable payment plan. Your FFEL lender may be unable to sell the loan after rehabilitation. You are required to keep making payments until a buyer is found. One way to deal with this problem is to consolidate with the Direct Loan program. You can then choose to repay through an income driven repayment plan. Your payments under these plans may be even lower than what you were paying to rehabilitate the loan. However, due to processing problems at the Department of Education, many borrowers experienced delays with Direct Loan rehabilitations. The Department claims it has fixed this problem. If you have any questions or concerns regarding Rehabilitating your Defaulted Student Loans, please post a new topic and member of our Creditboard community will assist you! Hodap2001
  2. Hi all - I'm sure this answer has been posted somewhere before, but I'm having a hard time getting a clear picture of what my options are. Which is why I'm coming to you here. I currently have two separate student loans from Iowa Student Loan. They're both, after many years of payments, almost paid off. Unfortunately six years ago (August of 2008) I made a mistake and was 60 days late on both of these loans. This is still affecting my score and affecting is significantly (roughly 70 points). I've written and called Iowa Student Loan asking them for a goodwill adjustment since I haven't had any negative items with them, or anyone since this hiccup. But they are refusing to remove it, stating that they, 'only report accurately.' every time that I've inquired. So my question is, do I have any other options? For something that happened so long ago, this is really hurting my score...
  3. Hello all, This is my very first post on any forum anywhere! I just turned 30 on Monday and this is what I'm doing now, lurking and posting on credit forums. LOL! I have terrible credit. My EX reports 5 baddies and 0 positives. My FICO is in the high 520's. I am still yet to pull other CRA reports. I am very excited about embarking on this journey to fix my credit. I have a defaulted SL. Last year I had my tax return intercepted and now its time to face the music. I have a few questions before I arrange payment. The owed amount is around $2500 I don't have an exact amount yet because different places are reporting different numbers. I'm looking to build some positive TL on my report, what is my best course of action? 1)Pay debt in full? Will that count as rehab or settled? Since it is with an CA will that effect what the Dept of Treas is reporting? 2) Rehab the loan, and pay in full before the loan is sold? (To minimize fees) 3) Rehab the loan and take my lumps (18.9% APR, 16% CF) then service the debt to increase positive reporting while using my extra money to build credit through other means? I make <20K a year so there is not much to go around as of now. I am in no rush to buy a house or car but definitely would love to do so in a year or 2 (or 3). Any responses would be appreciated. Peace, T
  4. I posted this already in the bankruptcy forum: http://creditboards.com/forums/index.php?showtopic=534860 I have student loans with Nelnet. that were not discharged in bk7. Bk7 was discharged about a month ago. The loans show admin forbearance until the year 0001. I called them to try to get the loan status and find out when I can re-apply for the income based repayment plan. I was on the IBR plan until I filed bk7 and my payment was $0. They told me that it was valid until January 2015, but that I need to reapply in October or November. However, the rep I spoke to last night said I will not be able to do this online because of the admin forbearance status. She says I have to submit a paper request, but that I can't do that until January. The previous rep said not to wait until January or I might have to make payments until they process my request. When I go to studentloans.gov, and try to request the IBR plan there, it says I have no eligible loans. Likely because of this admin forbearance. Should I be concerned about the forbearance date? Or should I just wait it out? Anyone else go through this?
  5. Today I received a letter from Allied trying to collect on a student loan original amount $5000. I know there isn't a SOL on student loans. However, they mentioned if it is not resolved, they can do 1. Wage Garnishment by ED 2. Fed tax refund to ED 3. Negative reporting MAY be posted by ED. They provided a 2 line very generic original amount, interest and collection fees. totaling $19,000. Here is a background: Another collection agency during the past 24 years including ED tried to collect this, they have put it on the credit report various time. It has all disappeared many years back from credit report. In the past I disputed them with another collection agency and after repeated attempt they provided me document which showed I went to University in TEXAS, I have never set a foot on the campus nor enrolled in any classes. However, it maybe for another university, and they cant produce the document. Can they report this on my credit report? I read from nolo law they can report it for 7 or 10 years, is this correct? Please help, I have worked very hard to clean my credit and now this. Thank you in advance.
  6. Hello Everyone - it is Oct 1, 2014 I have been lurking on this site for a bit and finally decided to register and post my own struggles and seek advice. I just graduated from college in June and got a job in August and make a decent salary; I'm able to save about $1000-1500/mo after regular bill payments, depending on how frugal I am. I also live in California where the SOL is 4 years. I have opted-out and am in the process of calling the CRAs to remove old addresses. I haven't gotten any real reports, annualcreditreport.com gave me "We were unable to honor your request. " I am going to print and send the form that came with the notice. creditkarma.com lists the following: Credit Score: 602 (up from 597 last month - woohoo!) Auto Loan: $13,714.24 @ 2.9% (not a problem) Fed Student Loans: $47,345 @ 3.6-6.8% (unconsolidated - still in grace period) Sallie Mae: $27,018 @9.75% (yikes!) 6 derrogatory remarks: CA1) $1642 - Delinquent Capital One (Feb 2011) CA2) $839 - Medical - Uninsured at the time (Feb 2011) CA3) $735 - Delinquent CC? not sure - (Oct 2013) CA4) $640 - Dental - Uninsured at the time (Oct 2010) CA5) $183 - Medical - Uninsured at time (Feb 2010) CA6) $122 - delinquent Utility bill (Nov 2011) I think it is worth noting that none of these accounts are with the original debtor but a Collection Agency. So I'm trying to come up with a plan of attack here: Obviously I want to get rid of all the negative CA marks, however, the interest on the Sallie Mae loan is killing me. I know I have 36 months of deferment for the Fed. Loans and I'm hoping to have a huge chunk of the SM loan paid off by the time that's up. For SM The minimum payment is about $249 and I can afford to pay $500-750/mo but that doesn't leave much room for aggressively tackling the CA's and still build a savings. Some of those accounts are past the SOL and one (CA4) is approaching the end of the SOL. I have moved around quite a bit so if there was a summons sent I didn't get it. I'm a little hesitant to send out DV letters as I read here that it could actually harm me: http://www.avoidbk.com/debt-validation-letter/ Should I send out DV's to the ones past the SOL or send them a C&D? I think the next logical step would be to verify the debts listed above that aren't past SOL by phone and try to strike a deal. I did get one off my report by paying 50% of the original debt amount, Is this bad practice? Next would be to aggressively pay off the SM debt after I've built a good savings and cleared the CA marks. Maybe join a CU and consolidate all the SL debt into one at a lower rate. What do you think? Thanks in advance!
  7. The U.S. Department of Education, Office of Federal Student Aid has created a website dedicated to those individuals currently attending Corinthian Colleges, Inc. (Everest Institute, Everest, WyoTech, and Heald College). Please visit https://studentaid.ed.gov/about/announcements/corinthian for up to date information. CB Members, if you have family or friends attending one of these institutions, please provide them that link as it will be updated with the latest information. This is probably one of the largest for-profit corporations that I've seen in my time that will ultimately close down or drastically reduce in size from 107 campuses nation-wide.
  8. John Oliver discusses student debt, which is awful, as well as for-profit colleges, who are awfully good at inflicting debt upon us. https://www.youtube.com/watch?v=P8pjd1QEA0c
  9. http://www.ed.gov/blog/2014/07/beware-of-student-loan-debt-relief-offers-and-credit-repair-deals/
  10. Does anyone know how to dispute an AES Consolidated SL? I originally borrowed about 30K. It went into default but I consolidated with AES years ago and am paying regularly. However, the balance is 75K. I do not see on my fico where the loan says it defaulted. It shows each loan amount including the loan consolidation. I understand paying finance charges if you default but to triple my loan amount is BS. Does anyone have any advice? Can I dispute? Thanks.
  11. A collections agency contacted me about a forgotten student loan then went into default. I have also asked them for information on the account. I acknowledge the debt, but I have questions about dealing with the collections agency: 1) Is it possible to negotiate a lump sum payment for less than the full amount? If so, how can I go about doing this? What % of the amount owed should I be willing to settle immediately? 2) I don't have the entire amount available, but I am interested in avoiding having to make monthly payments with additional interest if possible. However, if I have to, how do people usually negotiate monthly payments with a CA? I don't have property, nor wages that they would be able to garnish. I'm not particularly concerned about the current bad credit, since it will be off before I will be interested in any additional financing. 3) Under these circumstances, would any sort of rehabilitation program be worth it for me? Any information on how to handle this situation would be helpful!
  12. FHA greenhorn here in the midst of credit repair. I'm curious if my wife and I should start the FHA loan process or sit tight a year and give it a go next spring. Here's my scenario: -applying alone (wife only makes $20k a year and has signif. student loan debt) -fico: equifax 600 trans 594 experian 624 - my income 50k/yr ( have made this steadily for 4 years but recently was offered a new job that paid a little better so I took it. I've been employed for 4 months at new job. have bachelors degree) - my DTI 16% (fed loans of 60k and 1.5k in cc debt at about 8% util. Just paid all off this month from 65% util) - 19k of charged of private loan debt that was sent to collections and is now back to OC. Debt has been idle for 1 year. I have the money together to settle most of the private loan debt (15k worth) and intend to do so before September, OC made an offer which I verbally accepted. The remainder of the baddie I should have paid off by spring. I post this thread for two reasons: 1. I read some threads here from FHA applicants stating charge offs typically aren't considered into DTI ratio and factored little to none into approval process with some lenders, which makes me wonder if we should start the application process now as I know it will take quite a while. 2. I'd rather get honest experienced input from this excellent forum than waste the energy with a lender if we won't quite be ready financially until next spring.
  13. My question is I have 3 payments left in my ReHab program. So once this is complete, do I automatically get new load and I have new entries on my credit report where the previous ones stay on. I know they stay on but what gets reported to the credit agencies and what status will show .
  14. I need help. I am trying to do the right thing and get things, financially, back in order and under control. I seem to be having some success resolving some issues, but I need guidance. I need your help. I was young. I was dumb. I am paying for it now. I have recently decided that I can overcome my mistakes, and finally picked up the phone and set up some payment arrangements. It wasn't easy (for me), but I did it. I think what had stopped me from doing it sooner was really my pride and my embarrassment rolled into one. I bit the bullet, and the parties were willing to work with me, to my surprise. So, according to my credit report, I now have one thing holding me back from accomplishing things that I want to do, and that is student loans. I defaulted on three student loans through Sallie Mae, and one through the Dept. of Education. I put the one through the DOE into rehab, and have successfully pulled it out of default, and it will be paid off in full within the next 4-5 months. The Sallie Mae loans I took out were in the amounts of $8,392, $16,000, and $17,500. A total of $41,892. Honestly, don't know exactly when the loans "defaulted" but on my credit report it shows that each were "open" in 08/05, 05/06, and 08/06. I know that my debt from Sallie Mae was sold/charged off/handed off to a collection agency. The balances on my credit report shows I now owe a total of $88,641, and that is also what the collection agency told me I owed. It also shows that the "past due" amounts on the loans are $12,291, $12,273, and $6,161. I'll come back to these loans. Several months ago I decided I needed to get my life together (from past mistakes, foolishness), and start thinking about the big picture, instead of today and today only. In addition to the student loans, I had a judgement that was filed against me in 2008, from an old credit card when I was about 20, and an account from T-Mobile in collections. The student loans, a judgement, and an account in collections were what was showing negatively on my credit report. I bit the bullet, and it hurt, went to the bank and pulled cash out. I went to the courthouse and paid the judgement off in full. I then turned around and contacted the collection agency that had the T-Mobile account and paid it off. My credit report still shows the judgement that was filed against me in 08/08, and now the T-Mobile account shows it has been paid. I applied for a mortgage in April 2014, and like I assumed, I was denied. I honestly just wanted to see where i stood, and if I could get any information on what I could do to get myself qualified to purchase a home. To my surprise, the lender that run my info told me that my score was a 654. Then the lender told me that was my score was not what disqualified for me loan, it was that judgement against me that threw up the biggest "red flag" (this was the week before I paid the judgement off in full). As a matter of fact, I was told that they have people with scores lower than that do get approved, but I needed to take care of the judgement ASAP and could reapply with them in 90 days. I was told that a lot of people with absurd amounts of student loans get approved. I knew I wasn't the only person in the world who defaulted on student loans, but didn't know how it would affect me. Like I said, I was told from the bank the biggest thing against me in their eyes was the judgement. So, I went and took care of the judgement the next week, and also paid off the T-Mobile account as I mentioned earlier. So I'm thinking to myself, that's two down, time to tackle the big student loan(s). Like it was an omen, or something of the like, a couple days after I had paid off the judgement and T-Mobile account, I got a letter from the company that now holds my Sallie Mae student loan debt. So I called them that day, as I really didn't even honestly know who even held the debt. I figured since I was getting old things squared away, just keep rolling with it. I called and they told me they wanted the loan paid in full, I told them unfortunately I had just went grocery shopping and wouldn't be able to stroke the nearly $90k check. I was then informed that I could settle the debt for $25k, and I informed them that I also could not stroke that check at the moment. So, then they say well, "What can you pay?" I told them I'd pay them $100 a month and they said that was fine. I set it up on auto draft and have made the first two payments, and figure at least making and showing an attempt to pay on it should reflect on my credit report in the future. So, in my mind I was fairly pleased by myself for at least "trying" to get things back on track. So, in the matter of a week or so, I had paid off a judgement in full, paid off the only negative collection account showing on my credit report, and at least started making a monthly payment on the student loans. So I figured, now that I'd done that, I'll go try again to get pre approved to buy a house (mid May, 2014). So, in I went and explained my situation, and was told well lets run your credit and see what we can do. I was told my three scores were (I believe these are right, but I'm trying to remember from memory) 654, 629, and 597 (I don't remember what the names of the reports were, but I know they weren't the typical Equifax, Experian, and TransUnion). I don't remember which was what score but those were the three scores. I was told they'd have to go by the 629, and needed it to be a 640 before continuing. After quickly scanning my credit report, I was told more than likely just paying my three credit cards to around 20% of their limits would probably be enough to boost that score over the 640 mark. Then the student loans were noticed on the credit report. It then quickly turned to, I see where you just started paying these back as it had updated to a "1" instead of a "9" showing on my credit report. I was then informed that regardless of my score, I could hang up getting a loan for a home until I had 24 consecutive "1's" for my student loans. I was told that it is possible if your loans are set up on auto draft, which mine are, that sometimes the underwriters will pre approve someone for a house with twelve consecutive "1's". I was told though that even if I were not paying the loans and they had slipped by the initial credit report, right before the closing of the house they re-check credit and it would have definitely caught old student loans, and then right before closing, they'd shut down the process. So, at least I didn't get that far and get crushed by that blow. Speaking of credit scores, and I already know that these are not the gospel, but I have accounts on www.creditkarma.com (TransUnion) and www.creditsesame.com (Experian). I am currently showing a 673 on Credit Sesame, and a 636 on Credit Karma. I'm not exactly sure what a "Vantage Score" is but mine on Credit Karma is a 723. I am adamant now, that I am little older and wiser, that all my bills are 100% on time. I have actually been that way for at least a few years, problem I suppose is I just recently started trying to "fix" what I'd screwed up years ago. I work hard, and make pretty decent money, and I want to have something to show for it. I know I cannot possibly be the only person that is dealing with something like this at the moment. Here are some questions that I have, and any advice, guidance, information would be most beneficial. I appreciate you taking time to read my situation. It is much appreciated, thanks in advance. 1. Would going to/hiring a credit advisor/ credit repair agency help me in any way? 2. Should I send all the bureaus a copy of the receipt showing that the judgement was indeed paid in full? If so, will this help my score by the bureaus knowing it has been paid? 3. Would it do me any good to contact the collection agency that holds the debt and tell them I'm wanting to buy a house? I doubt they care, but... 4. Do I need to take out any other loans that I know I can repay on time or early to show different types of payments on my credit report? i.e. auto loan, personal loan, etc? All I have now, are credit cards. * Also a quick note, on my credit report it shows the the three Sallie Mae loans separately, and when I receive the letter from the collection agency that they are about to auto draft my account for payment, they have the sum all lumped together. Does this matter? Could it be adjusted to show one lump sum on my credit report with one row of "9's" instead of three individual loans with rows of "9's"? 5. Are there any lenders that specialize in situations like mine? If so, who? 6. Should I re-apply (in 90 days) with the bank that I initially tried with in April 2014, who seemed more worried about the judgement than the student loans? Thanks again. If I need to move this post to another thread, please let me know.
  15. In a few months, I will be going back to school as an Undergraduate. Unfortunately, all the schools I am interested in are $40k a year. I will get some of it covered in federal student loans, grants, and scholarships, but I'll still owe about $20k a year in tuition. Does anyone have a lender for private student loans? There was an article today in the NY Times about student loan horror stories, so I would also like to hear about any not-so-great lenders you know about. Thanks!
  16. 2 days ago, after reading about the Ombudsman Group on this forum, I decided to try for myself. I did the online e-mail form to the group and crossed my fingers. The VERY NEXT DAY, I received a phone call/voicemail from someone at the Ombudsman Group who gave me a number to call him back and suggested that he "thinks we will be able to fix some of [my] your problems." He told me I might need to fax in a current copy of my credit report and some other documents, but that we should talk first to figure out the best way to proceed to get everything resolved. Wow! I was delightfully surprised. Issues I pointed out in my email were duplicated Student Loan accounts on my credit report, incorrect payment history, etc...all the stuff we complain about on here everyday. I will keep you guys updated on the progress and plan to call today to see what the Ombudsman Group has to say. On a separate note, Sallie Mae responded to my CMRRR dispute sent to the Wilkes-Barre, PA address through my online Sallie Mae account. They sent me two documents: one said that they could not make any changes to my credit report because everything was reporting accurately; the other was a payment history that only showed each account being paid off (likely when they were sold off to the next organization/office). So, I'm wondering if I can use this latter letter in a dispute to the CRAs to get that crappy payment history fixed on my CR. Again, I'll keep the board posted.
  17. Hello all! This is my first post I have South Carolina Student Loans that were in default. My state income tax refund this year paid them off entirely. What can I do to have some of the negative information reporting on my credit updated to show this was paid in full? I'm worried it will not update because it was paid through tax garnishment. Does anyone have information or experience in this regard?
  18. I have a question for everyone. I posted here because this is more of a "how does this affect my credit" question versus what do I do about this student loan trade line. I have a sallie mae student loan that was opened in 2000....this is the oldest trade line on my report. The problem is, this account went into default in 2007. I have since rehabbed the loan and I am actively paying on it through Nelnet. The Salle mae is currently reporting the "current status" as 120 days past due. I'm not sure if this is correct, as I rehabbed this loan. My last payment on this account shows in 12/07. It hasn't had any other activity since early 2008 when I rehabbed it. Should I just let it be as it is my oldest trade line? Do you think this is causing a drop in my score? I'm not sure since that last late payment was so long ago. Just thought I would get some opinions on what to do with it. It hasn't caused me any problems as I just closed on my new home on 11/13.....the mortgage company didn't even ask for a loe. Thanks for any insight.
  19. Hi I really need some advice here. I am desparately trying to get out of default. I got a wage garnishment letter from Pheaa on my student loan. My student loan is actually with AES. Yes ia m in default. So anyway the letter was on Pheaa letter head and stated that Pheaa is processing a wage garnishment. I called Pheaa they said they are not. I called AES they sent me to GC services. In the meantime I went ahead and filed a consolidation application I really want to fix this. So i proceed to call GC. I let them know I can afford to pay them 100 today and 200 on the 20th. They would not accept that because I do not have a checking account. BTW this is after asking me for 1000.00 up front. So 300.00 total this month. They said the least AES will accept is 180.00 wait I thought according to NAt student loan and AES that GC services is the one trying to collect. Anyway they will not take less than 180.00 to stop the wage garn. Also the wage garn equals 226 .00 out of my paycheck. In the meantime I have this application in for consolidation. So I have to stop the wage garn before it happens. Letter also states that the date is 01/14*/14 and I have to the 12th. I though they have to give me a 30 day notice? So basically my question is two parts: 1. If I pay GC services 180.00 can they still garnish and can I still consolidate? They said I can I think they are lying. 2. Is the letter legal if they say that Pheaa will garnish when they are the ones trying to garnish (btw no wage garnishment hearing to date)? Pheaa said they are not.
  20. I obtained my MA in counseling in 2006 in the second cohort to go through the then new program that offered the degree with 6-8 (I don't recall which exactly) fewer credits than is required to be licensed. The school "strongly encouraged" us to get a job and complete the post-graduate hours to get the license ASAP before the law changed but few of us were able to, mainly because finding anyone already licensed to supervise was nearly impossible. Anyway, I am now in a dilemma of not having a license but also not having enough credits to get said license, even if i'm being supervised. Is this grounds for discharge for inability to benefit, given that I cannot practice without a license?
  21. I became unemployed 3 years ago after nearly 30 years of stellar work after an acute mental health event and was subsequently fired from my job (first time fired and I didn't freak out at work).....I've since been helped by medication but have been unable to find employment in my previous field (60k per year). It is all I've done for nearly 30 years. We relocated to Austin Texas 2 years ago. We have drained our retirement accounts. My wife has been unable to find work in her field (3.0 student / top 10 undergrad business program) as an older student (mid 40s) with bad credit and has instead been employed to do data entry. As a result, my wife's student loans (around $45K ) went into default and she is considering filing Chapter 7 BK for another non-education related bill for which a garnishment will likely be sought. Unfortunately, her employer is from out of state and the JDB attorney had the judgement domesticated to her employer's state. As a family of 4 we are unable to get by on $30k per year with pending garnishments. Some of the student loans were originated in the 1990s and then again in 2007 Sallie Mae student loans were returned to the Department of Education for collection and a few others were apparently (ALPN) private alternative student loans which National Collegiate Trust has sold. West Asset Management is already receiving a garnishment for a student loan but has filed another request for garnishment on the same student loan account (I didn't know that was even possible). I just spoke with National Collegiate Trust and they indicate a $9,183 was defaulted 3 years ago and subsequently sold to NCO Financial (CA). NCO Financial has filed paperwork to get a garnishment. Garnishment paperwork is starting to come in from 4-5 companies associated with the student loans..... We just can't get by, I sell plasma and my wife stops by food banks. Amazing how far one can fall. I don't even recognize myself anymore. We both joined the Army to get an education so we could pull ourselves out of poverty and nearly 30 years later we're worse off than when we were children. We've pulled our 2 children down during the fall.....very bright....both in gifted and talented programs, eldest in Duke TIP, straight A's, top ten student .....but here we are...drowning. I've read conflicting information regarding the ability of debtors to discharge private student loans and have not been able to determine a definitive answer as a result. 1. Are private student loans dischargeable within the normal course of a chapter 7 bankruptcy in Texas 2. Are there statute of limitations associated with private student loans? 3. Are there different enforcement rules based on the governing statutes at the time of the loan origination? Any assistance on this would be greatly appreciated. As with everyone else, this is a particularly difficult period of time and apologize for the lack of brevity. It is easy to feel despondent. Two observations: 1) The ALPN (private) loans carried variable interest rates which reflect the discounted "value of money" .In essence, debtors pay a risk premium for interest rate and repayment uncertainty. How then can creditors have it both ways? 1. TGenerate higher ROI by charging a variable rate (present value of money / pricing risk) and retroactively imposing no default risk when that was already implicitly accounted for in the initial contract. 2) How can a contract be enforceable if one of the parties is retroactively disadvantaged by a change in the terms ex post facto? Admittedly sour grapes but if 2 parties enter into a contract based on specified terms, their evaluation of risk and benefit, how can one party retroactively have their position enhanced years later for the duration of the contract? As I indicated above, the creditor has assumed the risk and has been compensated via a variable risk premium based on the terms at the time the contract was executed. If the terms of enforcement of the contract changed, then why didn't the interest rate drop to reflect the reduction of repayment risk? Thanks again. Very much appreciate the community as a silent lurker.....
  22. I have 7 Sallie Mae loans totaling 25000$. I have paid a small bit on them, but because I am still in school, I have incurred more debt than I have paid on. Half are subsidised (I don't know what that means). Half are unsubsidized. Can I consolidate them into one loan somehow? Would that even help? (making it look like I have 1 loan instead of 7 loans?) Besides paying them off completely, which I can not do, what can I do to help my credit regarding this loan? It is messing with my income to debt ratio, so I wonder how is that calculated? At what point (is there a percentage?) does a loan not affect your income to debt ratio? Besides paying it off, what can I do with this loan to help my credit? I am trying to buy a house.
  23. I have read through much of the newbie section, and have read the transcripts/notes for Psychdocs lessons. However, I'm still a little unsure with how to proceed with this troublesome loan that got sent to collections. I have made payments for the last 9-10 months, and while I have received letters from the CA with the original creditor listed, I have not actually received any sort of validation/verification. I am particularly interested in Eliminating the $2,919.87 in collection fees. Reducing monthly payments to something closer to $60/month. How can a Request for Verification letter help me here? Can I claim to still be within the 30 days? Does it matter? Can I, or should I, dispute? Are there other options that I don't know about? The Loan 2006 to 2007: $8,500 student loan through the State of Alaska Dept. of Education. Used in Alaska. I was a resident of Alaska at the time of loan. [i'm not sure what original interest rate was.] 2007 to Dec. 2011: Attend and finish college in Idaho. Gain residency. 6 month grace period begins. Sep 2012: Entered repayment. Did not pay for whatever reason (poor and forgetful). Creditor would not grant forebearance or lower monthly payments. Feb 2013: Get contacted via phone by a CA: Premiere Credit of North America, LLC. Principal had increased to $11,951. In addition, the CA said (via phone) collection fees of $2,910.87. Made a payment of $83, the "suggested minimum." [Girlfriend moved in so I had some money to spare] March 2013: Start making payments of $102.47/mo. July 2013: Join US Navy to pay down loans and reduce interest. Currently in Illinois. Today, 20 Nov, 2013: I called and tried to request a forebearance, to which CA said they couldn't grant such a thing but that they could stop processing payments. I'm skeptical that they will actually stop. The account they have only has $2.00 in it (I don't use it anymore) and I'm not sure how to guaruntee the CA won't charge it. Principal balance is still $11,951. Current interest in addition to principal of 11,951 is $458.27. Total being requested by CA is $15,246.80. **They have mentioned numerous times over the phone that they would be willing to reduce or drop all fees if I could get my bank to give a personal loan. I also finally sent out SCRA letter and copy of enlistment contract requesting reduction to 6% APR. I have also looked at my credit report: The status is that it is in collection, $1,040 past due as of Sep 2013. It is scheduled to continue until June 2019, so I think the SoL won't help me here. The CA is not mentioned by name ANYWHERE in any report!!! Can this be of some help???? Of interest though is that my payments have been reported, although only $83/mo has been credited each month since MARCH 2013, and I definitely made a $83 payment on 1 February 2013 and then $102.47 in March. I'm guessing the CA is using the $19.47 difference towards "their" interest?
  24. I had three student loans with Wells Fargo that i never paid on and were resold to another lender i have since rehabilitated the loans and the loans are reporting paid as agreed with the new servicing company but i still have the derogatory marks on my report from when Wells Fargo had the loans after a few phone calls to WF they are not going to remove the remarks for me and they do not fall off my credit report for 4 more years does anyone have a suggestion of what i can do or a good number at the executive level to get someone to work with me.
  25. Ok so my GF had "some" old student loan late payments, we are talking 2 150 day a few 120 day a few 90 and so on... Supposedly the loan was supposed to have been in forbearance or deferred. These were all from when the loan was being serviced by the US Dept of Education loan servicing center. So I had her contact the student loan ombudsmen figuring if it really was in forbearance or deferred they may be able to help. They were quick to respond, and ask her to send them a copy of her report, which we did. Took them about a week, but they responded and agreed they should have been in a forbearance status. Since the US Dept of loan servicing center no longer exists, all we needed to do was dispute with the CRA and they will have no way of verifying the late payments! Entered the TU dispute online Monday night, and was returned as deleted this morning!
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