topic Re: Defaut loans consolidated.....now what in Student Loans

Defaut loans consolidated.....now what

Anonymous — Wed, 18 Jun 2008 15:17:19 GMT

I consolidated my loans with Direct Loans which are now defferment.

The Origianl Lender sent them to ISAC(Illinois Student Assistance Commission) for payment that is when I consolidated with DIrect Loans.

I guess my question is can I get the original lender or ISAC, they are both showing on my CR .

So what really is 5 neg individual loans now looks like 10 neg indivdual loans.

Re: Defaut loans consolidated.....now what

LynnInMN — Thu, 19 Jun 2008 23:21:38 GMT

Sounds like you defaulted on your student loans...that would be the only reason ISAC would be involved.

Those tradelines will report for 7 years from the claim paid date or the date that ISAC paid the default as required by the Higher Education Act. In hindsight, you should have rehabbed first to get rid of the ISAC negatives.

Re: Defaut loans consolidated.....now what

Anonymous — Sun, 22 Jun 2008 18:00:53 GMT

LynnInMN wrote:
Sounds like you defaulted on your student loans...that would be the only reason ISAC would be involved.

Those tradelines will report for 7 years from the claim paid date or the date that ISAC paid the default as required by the Higher Education Act. In hindsight, you should have rehabbed first to get rid of the ISAC negatives.

I too had defaulted student loans... is there an y way to get them off the credit report by an GW letter or some other type of letter? They say charged off debit.

Re: Defaut loans consolidated.....now what

Anonymous — Mon, 23 Jun 2008 02:01:19 GMT

@Anonymous wrote:
I too had defaulted student loans... is there an y way to get them off the credit report by an GW letter or some other type of letter? They say charged off debit.

When was the DOFD (date of final delinquency)? It should fall off your reports 7.75 years after that date ...

BUT, and this is a HUGE "but," just because it falls off your CRs doesn't mean you're off the hook. They can always come after you as there is NO SoL on student loans. And they can come after you by means of wage garnishment, account levies, tax refund offset, lien attachment, judgments, etc. You NEED to set up some sort of arrangement NOW. See if you can rehab your loan -- that would take 9-12 months (depending on the loan type) of $50/month payments. And that would take your accounts out of "default" status and into "paid as agreed" status.

There is no GW letter possible for not paying your loan off. Your only option is to rehab them (if possible).

And lastly, I cannot stress how important it is that you take care of this NOW. Every day that passes is more interest, more fees ... it's not uncommon for a $10K loan to turn into $25K merely from collection fees and interest. The time you "waste" now in not taking care of this is oodles of $$ later. And heartache to boot!!

Good luck!!

Re: Defaut loans consolidated.....now what

Anonymous — Wed, 25 Jun 2008 04:58:15 GMT

About four years ago I consolidated three defaulted federal student loans through Direct Loans. It took a year for my CR to drop the neg defaulted loans altogether. I've made sure to keep the payments current, and have had a deferment along the way. The only loan currently listed is the Direct, and it's a major positive. Keep in mind YMMV, but it seemed a very nice, unsolicited GW gesture and incentive to stay within their good graces.

Re: Defaut loans consolidated.....now what

Anonymous — Wed, 25 Jun 2008 19:44:48 GMT

@Anonymous wrote:
@Anonymous wrote:
I too had defaulted student loans... is there an y way to get them off the credit report by an GW letter or some other type of letter? They say charged off debit.

When was the DOFD (date of final delinquency)? It should fall off your reports 7.75 years after that date ...

BUT, and this is a HUGE "but," just because it falls off your CRs doesn't mean you're off the hook. They can always come after you as there is NO SoL on student loans. And they can come after you by means of wage garnishment, account levies, tax refund offset, lien attachment, judgments, etc. You NEED to set up some sort of arrangement NOW. See if you can rehab your loan -- that would take 9-12 months (depending on the loan type) of $50/month payments. And that would take your accounts out of "default" status and into "paid as agreed" status.

There is no GW letter possible for not paying your loan off. Your only option is to rehab them (if possible).

And lastly, I cannot stress how important it is that you take care of this NOW. Every day that passes is more interest, more fees ... it's not uncommon for a $10K loan to turn into $25K merely from collection fees and interest. The time you "waste" now in not taking care of this is oodles of $$ later. And heartache to boot!!

Good luck!!

Ok right now Im in college so I would not have to worry about paying those loans until Im done with college which is about 5 years from now. So they are in deferrment. So should I be making payments on them as you stated the interest does add up? Will paying them monthy even though Im not due to pay monthly help my score overall?

Strong

Re: Defaut loans consolidated.....now what

gogocred — Sun, 16 Jan 2011 21:01:07 GMT

@Anonymous wrote:
@Anonymous wrote:
I too had defaulted student loans... is there an y way to get them off the credit report by an GW letter or some other type of letter? They say charged off debit.

When was the DOFD (date of final delinquency)? It should fall off your reports 7.75 years after that date ...

BUT, and this is a HUGE "but," just because it falls off your CRs doesn't mean you're off the hook. They can always come after you as there is NO SoL on student loans. And they can come after you by means of wage garnishment, account levies, tax refund offset, lien attachment, judgments, etc. You NEED to set up some sort of arrangement NOW. See if you can rehab your loan -- that would take 9-12 months (depending on the loan type) of $50/month payments. And that would take your accounts out of "default" status and into "paid as agreed" status.

There is no GW letter possible for not paying your loan off. Your only option is to rehab them (if possible).

And lastly, I cannot stress how important it is that you take care of this NOW. Every day that passes is more interest, more fees ... it's not uncommon for a $10K loan to turn into $25K merely from collection fees and interest. The time you "waste" now in not taking care of this is oodles of $$ later. And heartache to boot!!

Good luck!!

This is only partially true.

My hubby and I both defaulted on our loans; he rehabbed, I consolidated. here's how it worked for me.

If the defaulted student loans were not consolidated into a new loan with a new lender, the borrower would be liable for debt collection via wage garnishment, income tax offset, etc. When the defaulted loan is moved from original lender (Sallie Mae) to guarantor (ISAC), it is paid but will indicate two negative entries on the borrower's CR. When the debt is moved a third time via consolidation (Direct Lobecause ans), it will add another entry for the original debt. If the borrower makes timely payments on the consolidation, nothing can be done to knock off the other two outstanding items. The borrower cannot rehab because the borrower no longer has debt with the original lender (Sallie Mae) nor the guarantor (ISAC). The borrower will need to wait more the 7 years from DOFD for the baddie(s) to fall off.

Re: Defaut loans consolidated.....now what

Tazman81 — Tue, 18 Jan 2011 16:15:37 GMT

@jogo: You are correct. In order to remove the "original" baddies from the student loan, then you have to rehab the original student loan. Once you consolidate it, then the baddies stay on your report from the original loan, though you can start showing a good payment record moving forward with the new consolidated loan.