cancel
Showing results for 
Search instead for 
Did you mean: 

Paying More Than Minimum But Loan Defaults?

tag
TheConstant
Regular Contributor

Paying More Than Minimum But Loan Defaults?

Hi Everyone,

 

So I just received my first notice from UAS Echo stating that "you have defaulted in your obligation to repay this loan", and I am very confused.

In August 2014, I had a past due balance of $323.xx, and I have since coordinated with the lender (my school) to pay more than the minimum amount every month, to make up the past due.

 

My standard payments are $84.xx a month, and I have been paying $100-$120 a month and the past due balance is now down to $89.xx.

 

I have not received any written or verbal notice that I was even at risk of default.

 

Did I actually default on the loan, or is this a scare tactic? I'm very confused as I have consistently brought down a past due amount.

Also, even if I still have a past due, it would put me at most 1 month behind from current, which means I shouldn't default to begin with?

 

Thank you for your help!


Goal Score:800

[ AmEx Blue Cash Preferred - $34500 ]
[ Chase Sapphire Reserve - $22400 ]
[ BofA Unlimited Cash Rewards - $31000 ]
[ BofA Cash Rewards - $18000 ]
[ Citi AAdvantage Platinum - $15000 ]
[ Chase Freedom Flex - $12000 ]
[ Cap. One QS - $7800 ]
[ Cap. One QS - $7000 ]
[ AmEx EveryDay Preferred - $5000 ]
[ Discover IT - $4500 ]
Message 1 of 2
1 REPLY 1
SCF
Valued Contributor

Re: Paying More Than Minimum But Loan Defaults?

If the loan isn't current and hasn't been current for several months, you may well have defaulted.  Have you talked to your school?  Since you set up a special payment plan directly with them, I would ask them directly why you're getting the notice.  It could be something as simple as your arrangement not being entered into the computer, so the system views you as defaulted even though you are not.

Message 2 of 2
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.