punkenhead Posted July 9, 2007 Report Share Posted July 9, 2007 I have read the basic requirements for William D. Ford rehabilitation, but I am unclear as to whether a person can meet the basic requirements for the loan, but still not be accepted. For example, I am in default on my student loans and do not currently have a payment arrangement with my guarantor or the agency that holds the loans. I am willing to do Income Contingent repayments and have estimated my payments to be $65 per month on this plan. I meet the basic requirements since these are all direct loans and since I am willing to do Income Contingent, so, is there any way I can be turned down for consolidation? I hope my question makes sense and is not stupid. Any help would be appreciated. Link to comment Share on other sites More sharing options...
LynnInMN Posted July 10, 2007 Report Share Posted July 10, 2007 I have read the basic requirements for William D. Ford rehabilitation, but I am unclear as to whether a person can meet the basic requirements for the loan, but still not be accepted. For example, I am in default on my student loans and do not currently have a payment arrangement with my guarantor or the agency that holds the loans. I am willing to do Income Contingent repayments and have estimated my payments to be $65 per month on this plan. I meet the basic requirements since these are all direct loans and since I am willing to do Income Contingent, so, is there any way I can be turned down for consolidation? I hope my question makes sense and is not stupid. Any help would be appreciated.There is no such thing as a William D Ford rehab. There is a William D Ford Consolidation loan....huge difference!Actually since you are in default, you are automatically assigned to the ICR plan for at least the first year. Call and get yourself set up on a repayment plan. Yes, they Ford can turn you down if you are not in satifiactory repayment. Link to comment Share on other sites More sharing options...
punkenhead Posted July 10, 2007 Author Report Share Posted July 10, 2007 There is no such thing as a William D Ford rehab. There is a William D Ford Consolidation loan....huge difference!Actually since you are in default, you are automatically assigned to the ICR plan for at least the first year. Call and get yourself set up on a repayment plan. Yes, they Ford can turn you down if you are not in satifiactory repayment.My issue is...I cannot afford regular payments of the amount I am sure would be required. Is there any plan other than William D. Ford that would accept me in a default status with no repayment plan in place currently? Is it a definite that William D. Ford would turn me down? Any answers would be greatly appreciated. Link to comment Share on other sites More sharing options...
LynnInMN Posted July 10, 2007 Report Share Posted July 10, 2007 My issue is...I cannot afford regular payments of the amount I am sure would be required. Is there any plan other than William D. Ford that would accept me in a default status with no repayment plan in place currently? Is it a definite that William D. Ford would turn me down? Any answers would be greatly appreciated.No ...those are the federal rules. Call the CA and negotiate a temporary payment plan. Link to comment Share on other sites More sharing options...
punkenhead Posted July 10, 2007 Author Report Share Posted July 10, 2007 No ...those are the federal rules. Call the CA and negotiate a temporary payment plan.How soon after I negotiate the payment plan with the CA can I proceed with enrollment in William D. Ford? I would assume "active repayment" would have to include at least one payment, would it not? Link to comment Share on other sites More sharing options...
PolarBearnCO Posted July 11, 2007 Report Share Posted July 11, 2007 You'll have to rehab those defaulted loans first, which is 9 consecutive on-time payments. Once you have completed your 9 payments, you are then eligible to consolidate. Consolidation will take one to two extra months after the 9th payment and YOU MUST continue to make the on-time payments to the CA until consolidation is finished. Link to comment Share on other sites More sharing options...
PolarBearnCO Posted July 11, 2007 Report Share Posted July 11, 2007 Actually, just check out this link posted by LynnInMN. It's the first freaking post in this forum, called REHABBING DEFAULTED LOANS... sheesh!http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html Link to comment Share on other sites More sharing options...
LynnInMN Posted July 11, 2007 Report Share Posted July 11, 2007 You'll have to rehab those defaulted loans first, which is 9 consecutive on-time payments. Once you have completed your 9 payments, you are then eligible to consolidate. Consolidation will take one to two extra months after the 9th payment and YOU MUST continue to make the on-time payments to the CA until consolidation is finished.Actually you can consolidate without rehabbing first. Credit wise it is better to rehab. Link to comment Share on other sites More sharing options...
PolarBearnCO Posted July 11, 2007 Report Share Posted July 11, 2007 Yeah, sorry. I knew that. Care to explain to this fine OP the negative aspects that'll affect his/her credit if rehab isn't done? It seems as though the OP is really impatient and needs to consolidate immediately... lol. (Psstt. In your own words "you can't afford..."... gonna take a long time to repay the student loans so sit back, relax, and enjoy life while you do.) Link to comment Share on other sites More sharing options...
punkenhead Posted July 12, 2007 Author Report Share Posted July 12, 2007 Actually you can consolidate without rehabbing first. Credit wise it is better to rehab.Okay, if my credit is not an issue, which it is not at this time, my original question still stands: How soon after making an arrangement with a CA can I start the process of consolidation? As always Lynn, thank you in advance for your response. You don't always give the most popular answer, but you give the answer people need to hear. Link to comment Share on other sites More sharing options...
punkenhead Posted July 12, 2007 Author Report Share Posted July 12, 2007 Yeah, sorry. I knew that. Care to explain to this fine OP the negative aspects that'll affect his/her credit if rehab isn't done? It seems as though the OP is really impatient and needs to consolidate immediately... lol. (Psstt. In your own words "you can't afford..."... gonna take a long time to repay the student loans so sit back, relax, and enjoy life while you do.)Wow, if I'm not mistaken, this is condescension...and from someone who has been here almost exactly two fewer years than me. That is nice. You know nothing about me or my situation. Your asinine post added nothing to my knowledge level, which, unless I am mistaken, is why most people come here, not to insult or denigrate, which seems to be your intent. I am not sure why you bothered to reply, when you had nothing positive to add and no knowledge to impart. Link to comment Share on other sites More sharing options...
Amerikaner83 Posted July 12, 2007 Report Share Posted July 12, 2007 Back to your respective corners y'all... Link to comment Share on other sites More sharing options...
PolarBearnCO Posted July 12, 2007 Report Share Posted July 12, 2007 On the contrary, I suggested you sit back, relax, and enjoy life, as repayment is going to take a while. That's pretty sound advice, IMO, regardless of your situation.(In one year, I doubt I'll ever revisit this site, let alone in two years. You can keep your "experience.")And you are correct. The only thing I know about you is that in the same thread, you have asked "how soon can I..." FOUR TIMES! I apologize if I thought you were an impatient person. My bad. Link to comment Share on other sites More sharing options...
PolarBearnCO Posted July 12, 2007 Report Share Posted July 12, 2007 Actually you can consolidate without rehabbing first. Credit wise it is better to rehab.Lynn, when I went through the rehab process, the CAs refunded a large portion of the fees and interest they added on before sending off the balances, as agreed prior to starting payments. If this person consolidates without rehab, he probably does not get that benefit, right? He'd have to pay the full 25% of the fee the CA added on? Link to comment Share on other sites More sharing options...
punkenhead Posted July 13, 2007 Author Report Share Posted July 13, 2007 On the contrary, I suggested you sit back, relax, and enjoy life, as repayment is going to take a while. That's pretty sound advice, IMO, regardless of your situation.(In one year, I doubt I'll ever revisit this site, let alone in two years. You can keep your "experience.")And you are correct. The only thing I know about you is that in the same thread, you have asked "how soon can I..." FOUR TIMES! I apologize if I thought you were an impatient person. My bad.I was not in any way implying that I had any great level of "experience". Tenure does not imply experience so much as it simply warrants respect, and I felt that you were being condescending and disrespectful towards me for no reason. And, for the record "how soon can I..." was only posted by me two times, not FOUR TIMES!, however, your apology is accepted. By the by, thank you for raising the question of whether the fees from the CA would be removed when I consolidated. Hopefully, I will get an answer on that point. Link to comment Share on other sites More sharing options...
PolarBearnCO Posted July 13, 2007 Report Share Posted July 13, 2007 By the by, thank you for raising the question of whether the fees from the CA would be removed when I consolidated. Hopefully, I will get an answer on that point.Heck ya! Those fees might make the rehab worthwhile. If I remember right, you cannot prepay a loan while in rehab. The CAs wouldn't let me make extra payments nor larger payments than we had already established. Link to comment Share on other sites More sharing options...
LynnInMN Posted July 13, 2007 Report Share Posted July 13, 2007 Heck ya! Those fees might make the rehab worthwhile. If I remember right, you cannot prepay a loan while in rehab. The CAs wouldn't let me make extra payments nor larger payments than we had already established.If the OP has a current loan with the DOE then yes, the fees are dropped. However if they currently have a FFELP loan, they are not. Link to comment Share on other sites More sharing options...
Recommended Posts