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Consolidating question


soulthoughts
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I'm thinking about consolidating my loans but not rehabbing. The reason I might not rehab is that I think they are due to fall off my CR next year. So my first question is....do student loans have the same reporting period as other things-7 years?

My next question is if I do NOT rehab and I consolidate, will that stop my current wage garnishment?

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The consolidation itself should stop it. Once you consolidate, a new loan takes the place of the old ones. The old ones will be considered paid, and the new one will be current.

Pretty sure SOLR is still 7.5 years even for student loans.

Have you looked into the income based options with the dept. of ed?

http://www.loanconsolidation.ed.gov/

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A consolidation may stop your garnishment for a time, but it will also be a new loan, which will start the reporting period over.

In addition, the reporting period expiring means pretty much nothing with regards to student loans. They are still owed and garnishment and seizure of tax returns will resume at some point and continue until the loans are paid in full if you don't set up an arrangement to pay them voluntarily.

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Will they let you consolidate when you are delinquent?

I was told two weeks ago that no one is offering consolidation loans to ANYONE right now and I am current on my $86k in student loan debt. Right now, this debt is high risk so the investor pipeline tha fund consolidation loans has been shut.

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A consolidation may stop your garnishment for a time, but it will also be a new loan, which will start the reporting period over.

In addition, the reporting period expiring means pretty much nothing with regards to student loans. They are still owed and garnishment and seizure of tax returns will resume at some point and continue until the loans are paid in full if you don't set up an arrangement to pay them voluntarily.

On top of lowering payments, the goal is to stop garnishment, and have a loan in good standing.

The reporting period for the consolidated loan is going to be different from the defaulted loan right? What I mean is, they will be listed as two different loans?

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I just submitted mine, four years worth delinquent to the govt site. It's in active processing right now. The MPN says the other loans will be paid off and a new one will start reporting, so yes, new Tradeline in my case. The reporting period for the other ones will still be able to report for 7 years, unfortunately.

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I don't think them being current should be a problem, as long as they're not in the grace period. Mine were all unsub stafford, delinquent and all went to the guarantors. I just filled out the application on http://www.loanconsolidation.ed.gov/

Under Borrower Services.

I did have to call all the guarantors to find out the loan number and amount.

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