Defaulted Student Loan Help?

Jerry45 · ‎06-27-2016

My Younger Sister called me this weekend, and was in a panic about a Defaulted Student Loan she blew off from 15 years ago. I told her I have no clue to this topic, but I would try the experts here at Myfico to see if they could help. It is only a $2500 loan, but now at 10 to 12k with Interest.

1. It is a Dept of Education Loan, recently given to Windham Professionals for Collection. She has been out of work for at least 1.5 years.

2. She wants to try and rehab, but can only afford low payments, and Windham is giving her a hard time, wants $500 a month etc..

3. She has a clean CR, and is worried that if the Default hits hits her reports, that Citibank, Cap One, and Chase will close her existing Credit Cards. (Vain for sure)

A real mess, and she is really a nice person with some life problems. I tried to search the net, and I am very confused on this topic.

Is there anybody she can talk to? I appreciate all help. Thank you.

Jerry45 · ‎06-29-2016

Must be a unpopular subject. Was just hoping I could find a number for my sister to call for free, instead of a lawyer. Oh Well, Thanks Anyway.

crazycatlady1975 · ‎06-29-2016

I am rehabbing, but they called me, not the other way around. I was able to work with my processor on the monthly payment. Their first number was too high, but they had multiple ways to calculate it. Has she tried pushing back on the amount? We started around $1100 for their first offer, but got it down to $450. Paying that much does suck, but being out from underneath that default makes it worth it.

Jerry45 · ‎06-29-2016

@crazycatlady1975 wrote:
I am rehabbing, but they called me, not the other way around. I was able to work with my processor on the monthly payment. Their first number was too high, but they had multiple ways to calculate it. Has she tried pushing back on the amount? We started around $1100 for their first offer, but got it down to $450. Paying that much does suck, but being out from underneath that default makes it worth it.

Thanks Catlady, for your response. Was the loan on your Creditreport, before you rehabbed it? I did see that there is something called a Student loan obundsman that you can call if coll agency is too harsh.

she just needs to roll the dice, but she wants to protect her CR, which at the present shows nothing yet. Oy Vey!!! Family

Jerry45 · ‎06-29-2016

All this drama over a $2500 Student loan from 1998. Just crazy

Anonymous · ‎06-29-2016

Im just beginning the credit repair process. We have some student loans that were defaulted on and I fear those the most. Im subscribed to this thread as Im interested in hearing what others have to say. Currently I have a deferment however the default does show on the CR and I have a funny feeling these ppl arent going to be willing to remove anything from my report. It does appear this is a topic not typically discussed here.

crazycatlady1975 · ‎06-29-2016

Yes, they are on my report. They may not be on her report, but the federal government maintains a system - CAIVRS (or something close to that), and the big lenders do pull that. Especially come mortgage time. She's not free of it.

You really should post over in the rebuilding forum - the smarty pants are over there! I wonder if considering it isn't on her report, that if consolidating isn't a better option for her.

Jerry45 · ‎06-29-2016

@crazycatlady1975 wrote:
Yes, they are on my report. They may not be on her report, but the federal government maintains a system - CAIVRS (or something close to that), and the big lenders do pull that. Especially come mortgage time. She's not free of it.

You really should post over in the rebuilding forum - the smarty pants are over there! I wonder if considering it isn't on her report, that if consolidating isn't a better option for her.

Wise advice, thanks Catlady. Had no idea about CAIVRS

Jerry45 · ‎06-29-2016

@Anonymous wrote:
Im just beginning the credit repair process. We have some student loans that were defaulted on and I fear those the most. Im subscribed to this thread as Im interested in hearing what others have to say. Currently I have a deferment however the default does show on the CR and I have a funny feeling these ppl arent going to be willing to remove anything from my report. It does appear this is a topic not typically discussed here.

Good Luck Crew. Many good people like Catlady here to help.