Student loan voyage begins

[ecbowen1]

Need help on my wife's student loans. I have read most of the posts here that I could and I'm still unsure of the proper way to get the student loans under control.

 

We are aiming to clean her credit and this is the last item left. She started on rehad with the collection agency last year but stop 4 months after financially we could not make the payments any more. We should have called and asked for income based payment for lower payment, if we had know at the time

 

I've read to its better to rehad first and then consolidate your loan once out of rehad. But I heard that you only get one shot to do a rehad? If so then what is the next alternative to do.

 

Also how do you tell who owns your loan now. I've went to the nslda.ed.gov website and all that is listed it:

Direct Consolidated Subsidized $3,639

Direct Consolidated Unsubsidized $6,176

DEBT MANAGEMENT AND COLLECTIONS SYSTEM
U.S. DEPARTMENT OF EDUCATION

PO. BOX
5609
GREENVILLE
TX 75403

 

 

But on credit report it has listed as permanently assigned to the government

Collection acct $3,967

Collection acct $6,773

PO Box 4222

Iowa City, IA 52244

 

 

 

Any help that anyone could provide would be greatly appriecated

 

 

[hodap2001]

Since you are defaulted, you DO NOT qualify for Income Based Repayment, Income Contingent Repayment, or Pay As You Earn. The only repayment option you qualify for, is reasonable and affordable payment as stipulated by the Collection Agency - this is determined by your Financial Situation. You can request Rehabilitation since you did not fully complete the Rehabilitation last time. This is the only way to clear up the Default Trade-Line and then once you fully complete rehabilitation, your loans will be transferred to a new Federal Loan Servicer and be given new trade-lines. A word of warning, Rehabilitation DOES NOT clear your credit from the original loan holder!! It will ONLY clear the Default Trade-Line; therefore, the accurate reporting from the original loan holder will remain; however, you can write a good-will letter, but there is no guarantee they will remove it.

 

Once you have completed rehabilitation and it has been transferred to a new Federal Loan servicer, I would then look into Consolidation with Direct Loan Consolidation and apply for one of the Income Driven Repayment Options (i.e. Income Based Repayment, Income Contingent Repayment, or Pay As You Earn) and the monthly payment amount is based upon your yearly Adjusted Gross Income from your Tax Returns - your monthly payment could be 15% or 10% of your discretionary income based upon the type of Income Driven Repayment Plan you choose.

 

Good Luck to you!!!

[ecbowen1]

thanks for your help. but is there a way to tell what collection agency has it now?

[hodap2001]

Check NSLDS to see where your loan(s) is currently located or you can call the Department's general 800 number on their website at studentaid.gov.

[ecbowen1]

In my first post this is from the nslds webdite

 

 

Also how do you tell who owns your loan now. I've went to the nslda.ed.gov website and all that is listed it:

Direct Consolidated Subsidized $3,639

Direct Consolidated Unsubsidized $6,176

DEBT MANAGEMENT AND COLLECTIONS SYSTEM

U.S. DEPARTMENT OF EDUCATION

PO. BOX

5609

GREENVILLE

TX 75403

[LynnInMN]

call 1-800-4FEDAID for information on who is collecting on it right now