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Consolidating Defaulted Student Loans


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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

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  • 4 weeks later...
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  • 2 years later...

What a lifesaver this thread is!  I have been searching for the information on who my two loans were with.  They are only a total of about $4k but they have been in default since 2009.  I'm looking to buy a house and these are the last bad things on my credit.  I found this thread and went and signed up to consolidate.  They had all of my loan information right there and so I filled out everything and now am waiting for the next step.  My question is how long after I start repayment will it affect my credit.  Also, there are 5 entries on my credit regarding these loans.  Three of the entries are zero balances but all are with Direct Loans.  So I'm wondering how to start cleaning that up.  How much do you think this is going to help my credit by showing that payments are being made on a regular basis? 

 

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I got contacted by a company called Reliant Capital Solutions in January, about my defaulted student loan.  They wanted me to pay an amount that I couldn't afford and would cause me hardships on finances.  I tried to negotiate a lower price, they wouldn't budge.  In the summer they said that if I didn't pay them, the government would garnish %15 of my wages, to cover the loan.

I did the math, and now it was going to be impossible to even pay my rent at that rate so I gave in, and agreed to pay the other amount even though it meant literally having nothing left out of my paycheck.  Now they are telling me that the government will still garnish %15 out of my salary, and on top I still have to pay them if I want to consolidate my loan.  The amount of money that I would have to pay will basically cripple me.  I have rent, car, other loans to pay, not counting utilities, phone etc.  I have no idea how im going to do it, because I calculated that at least one or another utility i wouldn't be able to pay.

Am I screwed and should consider living in my car or under a bridge or what can I do?

bFm

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