OSLA - Deferrment & Lates?

[StartinOver]

Well, it has been such a long hard road, and I have gained very little ground. On my school loans I got the 120 lates removed a few months ago, but not the 7 times of 90 days lates (7 accounts). Those happened as a repercussion of getting laid off my job 2 years ago and being homeless and could not pay last summer. Several times I have requested they remove the other lates, to no avail. My last turn down was today by email.

I just lost my job yesterday and called today for defferment or forebearance, whatever it is called. Do you think that will remove the lates? For some reason I thought I had read somewhere that it happened to someone on this board.

[StartinOver]

Does anyone know if they remove lates when you go into forebearance?

Also, I wanted opinions of whether you should leave your school loans with original lenders, or first, can you change, and second, should you pick and choose who to change to?   I currently have OSLA.

I am hoping to get some answers before it is too late and I loose internet access to read this forum. Thanks.

[StartinOver]

bump

I am so desperately trying to clean up my reports. Hope I have not been offensive in my directness. I sure would appreciated knowing what happened to others when they faced the above.

[Lel]

Forbearance will not remove the late payments.  In addition, when your loans are reported as being in forbearance, you may see a significant drop in FICO scores.

I'm familiar with your thread related to your hopes to get a mortgage before the tax credit ends later this month.  Having loans in forbearance will probably quash this - when the underwriter sees that you are unable to pay your current debts, it is highly unlikely that you will be extended new credit.

With regard to refinancing your student loans, it's always an option, and there are several choices.  Some loan consolidators will lump all your loans together and give you a lower interest rate.  But as with your mortgage application, a student loan consolidator is going to be concerned about your loans in forbearance.

[StartinOver]

Lel, thanks for your reply. I thought creditors can't tell the difference on the credit report of whether my deferment was for being in school or unemployed. I also that my score went down when they came out of deferment. I guess I will just wait to apply after. Two years ago when I went to apply I was told that lenders like to see at least a 12 month deferment/forebearance.

[Lel]

Okay, I'm going to backtrack on what I said about the forbearance.  After further research into this issue, it looks like that student loan forbearance may not necessarily hurt your credit score.  It depends on whether your SL lender continues to report you as paying as agreed.

The late payments in the last year are going to remain - being in forbearance or deferment does not erase your prior delinquencies.

Even though your loans in forbearance may not hurt your approval chances, the fact that you are currently unemployed is going to a major hurdle to approval.

[StartinOver]

Correct, umemployed is a hurdle - IF I am unemployed when the time comes to report it. Hopefully, that won't be the case. Thanks for your comments.

I thought I have heard of some people getting their lates taken off when it went into deferment. I was hoping someone that had this experience would comment.

 How do you eat an elephant? One bite at a time.