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New Contributor
bunga7
Posts: 65
Registered: ‎01-21-2014

Consolidate two loans in 09/2012, Now collection on those two old loans

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.


Starting Score: 547 EQ; 529 EX; 540 TU
Current Score: 7/3/2014 646 EQ Fico; 631 EX; 638 TU Fico
Goal Score: 700


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New Contributor
bunga7
Posts: 65
Registered: ‎01-21-2014

Re: Consolidate two loans in 09/2012, Now collection on those two old loans

Anyone have any advice?


Starting Score: 547 EQ; 529 EX; 540 TU
Current Score: 7/3/2014 646 EQ Fico; 631 EX; 638 TU Fico
Goal Score: 700


Take the myFICO Fitness Challenge
New Contributor
bunga7
Posts: 65
Registered: ‎01-21-2014

Re: Consolidate two loans in 09/2012, Now collection on those two old loans

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.


Starting Score: 547 EQ; 529 EX; 540 TU
Current Score: 7/3/2014 646 EQ Fico; 631 EX; 638 TU Fico
Goal Score: 700


Take the myFICO Fitness Challenge
Valued Member
gabbismommy01
Posts: 34
Registered: ‎03-12-2008

Re: Consolidate two loans in 09/2012, Now collection on those two old loans

Sorry I can't help you with your specific question :smileysad: 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!

New Contributor
bunga7
Posts: 65
Registered: ‎01-21-2014

Re: Consolidate two loans in 09/2012, Now collection on those two old loans

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.

 


Starting Score: 547 EQ; 529 EX; 540 TU
Current Score: 7/3/2014 646 EQ Fico; 631 EX; 638 TU Fico
Goal Score: 700


Take the myFICO Fitness Challenge
Valued Member
gabbismommy01
Posts: 34
Registered: ‎03-12-2008

Re: Consolidate two loans in 09/2012, Now collection on those two old loans

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.

 


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