Reply
Regular Contributor
bubbles0605
Posts: 114
Registered: ‎06-18-2008
0

Student loans in default! Advice please?

I just got a letter from the DOE and it says that my loans are in default ( 4 loans, approx.10,000 total).
they were in Deferrment but I took this semester off and am going back again inSeptember.
Will they put them into deferrment again BEFORE the actual sememster starts?
Do I call and see what I can do? Or do I just TRY and get current?
 
thanks in advance
3/28/12- (fako from karma) TU-553
Valued Member
erika
Posts: 32
Registered: ‎02-16-2008
0

Re: Student loans in default! Advice please?

Call them immediately and explain the situtation. 
 
They won't be able to do an in-school deferrment until September.  However, you may qualify for one of the many other deferrments or a forebarence.  You don't say why the loans went into default except that they were previously deferred so I cant tell you what you may qualify for.
 
If you dont qualify for a deferrment or forebarence, you should be able to work something out.  If you only took one semester off, this should be relitively easy to do.  Remember, the DOE doesnt want students to default and you will have an easier time fixing this before they transfer it to collections.
 
Also, if you don't do this now, you can forget about taking out any additional loans for September.
 
Good luck!!!

Starting Score: EQ 434 TU 499 4/29/10
Current Score: EQ 651 11/1/2011
Goal Score: 700


Take the FICO Fitness Challenge
Frequent Contributor
LynnInMN
Posts: 465
Registered: ‎06-13-2008
0

Re: Student loans in default! Advice please?



bubbles0605 wrote:
I just got a letter from the DOE and it says that my loans are in default ( 4 loans, approx.10,000 total).
they were in Deferrment but I took this semester off and am going back again inSeptember.
Will they put them into deferrment again BEFORE the actual sememster starts?
Do I call and see what I can do? Or do I just TRY and get current
I just got a letter from the DOE and it says that my loans are in default ( 4 loans, approx.10,000 total).
they were in Deferrment but I took this semester off and am going back again inSeptember.
Will they put them into deferrment again BEFORE the actual sememster starts?
Do I call and see what I can do? Or do I just TRY and get current?
 
thanks in advance


With loans in default, you will no longer qualify for deferments or forebearances.  You also are no longer eligible for any federal financial aid.  You cannot bring a default current...the account has to be paid off to resolve the default. 
 
How long where you out of school for?  It take 280 days of non payment for a loan to default and you should have received numerous calls and letters warning you of the impending default.
 
Ex-Financial Aid Officer

Ex-Student Loan Collector
Regular Contributor
bubbles0605
Posts: 114
Registered: ‎06-18-2008
0

Re: Student loans in default! Advice please?

 I defaulted b/c I was in a financial crisis for a little bit. The letter says I am 180 days behind.
I dont undertsand WHY I cant become current ever again. Doesnt make sense to me.
I was in one class this past semester but had to withdraw b/c of a family illness.
 
3/28/12- (fako from karma) TU-553
Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008
0

Re: Student loans in default! Advice please?



bubbles0605 wrote:
I defaulted b/c I was in a financial crisis for a little bit. The letter says I am 180 days behind.
I dont undertsand WHY I cant become current ever again. Doesnt make sense to me.
I was in one class this past semester but had to withdraw b/c of a family illness.





AFAIK, you CAN become current. It will just have to have happen after you've rehabbed your loans. I am assuming that these are Federal loans?

According to the 1998 amendment to the HEA, you default after 270 days, not 180. And even then, it often takes several more days for the servicer/lender to file a claim with the DoE (or guarantor, depending on the loan).

Are you SURE you've completely defaulted? And it wasn't just a warning letter stating that you were in DANGER of defaulting????

Can you post a snippet or two from the letter ... specifically the paragraphs that lead you to believe you've actually defaulted (and aren't "just" in danger of defaulting)?

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Valued Member
talulah
Posts: 84
Registered: ‎05-02-2008
0

Re: Student loans in default! Advice please?

Yeah, that seems strange. With the 180 day grace period, even another 180 days would be an entire year. 270 would be even more.  Has that much time passed?
4/28/08-EQ 668
5/2/08- EQ 687 TU 670
6/15- EQ 722!!! TU 687
Regular Contributor
bubbles0605
Posts: 114
Registered: ‎06-18-2008
0

Re: Student loans in default! Advice please?

[ Edited ]
Oops! the word "defaulted" wasnt used. Its says: " Dear, Borrower,
Your lender has informed this agency (higher ed student assistance authority) that your student loan account is now 180 days delinquent.
You must take steps to resolve this today."

Also, I was wondering if they can take my Stimulus check if I am delinquent??



Message Edited by bubbles0605 on 06-29-2008 04:43 PM



Message Edited by bubbles0605 on 06-29-2008 04:44 PM
3/28/12- (fako from karma) TU-553
Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008
0

Re: Student loans in default! Advice please?



bubbles0605 wrote:
Oops! the word "defaulted" wasnt used. Its says: " Dear, Borrower,
Your lender has informed this agency (higher ed student assistance authority) that your student loan account is now 180 days delinquent.
You must take steps to resolve this today."

Also, I was wondering if they can take my Stimulus check if I am delinquent??



Message Edited by bubbles0605 on 06-29-2008 04:43 PM



Message Edited by bubbles0605 on 06-29-2008 04:44 PM




Whew!! Delinquent is SO far from defaulted (well, it's 3 months away, at least!!)!!

Get your patootie on the phone and make arrangements NOW!! The sooner you get back on track, the sooner you won't get whacked in the head with a rolled up Sunday's New York Times!! I may sound like I'm lecturing you, and if I do, I AM ... ask me why!! We have 120+ days on our SL and it has tanked our scores to the low 600s!!

(It may not seem like a huge deal now, but, trust me, it ain't fun!!)

I've heard that you can't be considered in "default" if you're in communication with your servicer/lender ... don't remember WHERE I heard that, but I did.

Anywho, yes, they can take your ESP, but chances are, unless you've defaulted, they won't. At least, we were close to default and they didn't take ours. And all the stories I've heard of tax refunds (or ESPs) being offset dealt with defaulted SLs, not just delinquent ones. You can, if you're really worried and want more than the opinion of a stranger in a forum, call the Treasury Offset hotline: 1-800-304-3107. You'll have to verify your identity (SSN and zip code, I think).

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Frequent Contributor
LynnInMN
Posts: 465
Registered: ‎06-13-2008
0

Re: Student loans in default! Advice please?

Yes they can and will default you even if you are in contact with the lender.  If the proper deferents, forebeaarances or payments are not made, they will file a claim with the guarantor. 
 
You are only subject to tax offsets if you actually default on the loan.
Ex-Financial Aid Officer

Ex-Student Loan Collector

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}