Consolidating Defaulted Student Loans

[LynnInMN]

Originally Posted by pmhager

Student loans are often used for the benefit of students and also for the education purpose. I think this is a great way to promote education.

often used?? This is the only reason student loans exist...to finance educational expenses. They are not available to borrow for any other purpose.

[christinag]

glad to hear that, i will try pay off before my future kids grow up..

[RTTech11]

Hi guys, I feel so fortunate to have found this forum..

My situation is the following:
I have about $33k in subs/unsubs loans with Sallie Mae as well as two private loans, one with Wachovia and one with SM. Currently, the $33k loans with SM which were defaulted are now in consolidation, and payments are supposed to start this December. Since these loans are in consolidation status already, would I be able to put them back in rehab, make payments for 8-9 months, and after that, consolidate them again once again to bring the interest rates and payment to a minimum?? Thanks in advance..

[LynnInMN]

Originally Posted by RTTech11

Hi guys, I feel so fortunate to have found this forum..

My situation is the following:
I have about $33k in subs/unsubs loans with Sallie Mae as well as two private loans, one with Wachovia and one with SM. Currently, the $33k loans with SM which were defaulted are now in consolidation, and payments are supposed to start this December. Since these loans are in consolidation status already, would I be able to put them back in rehab, make payments for 8-9 months, and after that, consolidate them again once again to bring the interest rates and payment to a minimum?? Thanks in advance..

Nope. You interest is always a average of your current rates so that wont help. Plus you can opt for the income contingent repayment plan right now while in consoliation.

[RTTech11]

I was reading on ICRs and it seems like a very good idea for me. Two things concern me though, one is the time it'd take to pay off the loan: 25 long years for just $33K in my case and 2) I read that the Government penalyzes married couples for ICR type loans. My wife is currently a full time student, but I guess this would mean my payment would be higher once she starts working because the incomes would be combined.
However since I am an X-Ray tech, it seems I fall in the public service category and that means after 10 years the rest of the loan can be discharged by the Govmt, not bad.
I could probably afford a higher student loan payment right now since I just finish paying off all my credit cards, but I'd like to save some money as well as improve my credit ASAP. Just want to make the smartest decision to help me get there the fastest, I'll ask Sallie Mae about this option, thanks LynnInMN.

[NickL]

Indeed, debt consolidation became rather popular today as a lot of people possess debts and are eager to get rig of them. Besides, a lot of students have debts on their loans and consolidation is the best solution, as for me, because debt consolidation companies provide lower interest rates and the repayment period can be extended. Personally, I applied for student loans consolidation after the graduation and now it's much easier for me to manage my payments.

[RTTech11]

edited..

[RTTech11]

edited

[LynnInMN]

Originally Posted by gene1782

I just want to clarify the potential impact and final result of the

1. Debt Consolidation
2. Consumer Counseling
3. Making minimum Payments
4. Settling your unsecured debt
5. Bankruptcy



studentloansescape dot com

You advertising on this board too????

Student loans are not dischargable in bankruptcy. They cannot be included in a debt consoldiation program or consumer credit counseling.

Making minimum payments without approval will only result in you being garnished in the case of fed loans and sued for private.

Student loans can easily be settled without the use of settlement companies.

[littleMikey]

Today you can take our a Private student loan pretty much as quick as taking a walk to the grocery. Not only that its relatively easy to get private educational funds, the most financially devastating thing is that the lenders are willing to mail the check directly to the borrowers! At this point a happy borrower can go out and buy a nice luxury car. The bubble is yet to explode, and its going to be much nastier than sub prime mortgage explosion of 2008.

[LynnInMN]

Originally Posted by littleMikey

Today you can take our a Private student loan pretty much as quick as taking a walk to the grocery. Not only that its relatively easy to get private educational funds, the most financially devastating thing is that the lenders are willing to mail the check directly to the borrowers! At this point a happy borrower can go out and buy a nice luxury car. The bubble is yet to explode, and its going to be much nastier than sub prime mortgage explosion of 2008.

Huh?? Private loans right now are next to impossible to get without excellent credit and/or a cosignor. A huge number of lenders have closed their private divisions. If you are stupid enough to sign for the uncertified type and over borrow, sign a now for a ridiculous interest rate, well you deserve the outcome.

Again....if you cannot afford the educational institution you wish to attend without private aid, you need to be looking at another school

[Abdulwahab786]

Thanks for Sharing this web.