02-15-2014 06:24 PM
So, I had two defaulted loans that I was able to consolidate into Income-based plan. Now I receive a collection notice that I owe $156 and $488 from 06/2012 on those two loans. When I contacted Dept. of Ed, the lady couldn't understand why those amounts weren't included in the consolidation, and said I could reconsolidate those two amounts. But I have a collection on my record for them. I'm confused how the loans could be consolidated into one loan, but yet I still owe these small amounts on them. I need to get these collections off my CR's. I've already applied to reconsolidate, but something isn't quite right.
02-15-2014 07:01 PM
Anyone have any advice?
02-15-2014 07:38 PM
Also, if I reconsolidate these loans, $633 total wil show as defaulted. If that's the case, I would be better of rehabbing. But how does one rehab $633 total in student loans? While I also have a consolidation IBR to pay on? I throw my hands in the air.
02-17-2014 08:19 AM
Sorry I can't help you with your specific question But I am curious how much of a score increase did you see when consolidating your loans out of default? I'm dealing with that right now..I was gonna rehab but decided to just consolidate instead!
02-17-2014 10:44 AM
I consolidated pre BK. There's little reason to think there was much change. The default still shows on the record, but it will say paid off.
However, let me tell you what happend when I consolidated...There is a period of 4-8 weeks after you apply that interest continues to accrue. This is what happened to me. If the new loan servicer doesn't catch it and add the interest in, you will have the same problem as myself...interest accrued and I didn't catch it. And it puts your old loans in default again. So, within a month or two of consolidation, be sure to make sure your old accounts are at $0.
02-18-2014 05:41 PM
Thanks for the heads up, sorry it was after you had to deal with it all! I will be sure to follow up with that after the consolidation completes.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.