AES SL - What would you do? Am I screwed?

[jbone1]

I have six student loan accounts with Sun Trust/AES all reporting 60-day late from May 2006. It's a long story so I'll try to be succinct.

1. College enrollment deferment ended with my last semester on 12/2010
2. On 2/2/2011, my school informed AES that I was no longer enrolled
3. AES received and approved my unemployment deferment request on 5/11/2010

According to the AES representative, they automatically used my one-time grace period in 2005. I did not request it. It was automatically applied. Therefore, when they received notice that I was no longer enrolled, payment was due immediately - NO GRACE WHATSOEVER.

So, by the time my deferment was processed, 60 days had indeed passed. Incidentally, the last contact that they show with me was back in 8/2010.

My issue is the fact that I assumed there was a grace period that evidently did not exist. This results in six 60-day lates on my CR from 4/2011. As you can imagine, this is killing my attempt to rebuild.

I am VERY new to this endeavor. Please tell me what you would do if you were in my shoes. Am I simply SCREWED?

[laz98]

Welcome to the forums!    Sorry it's because of a tough situation, though

You said they automatically used your grace period in 2005...but you didn't mention what you were doing in 2005.  Were you out of school for a long time?

Also, you said your lates are from May 2006......but that you left school in Dec 2010 & that AES wasn't notificed until Feb 2011, resulting in a 60-day lapse.  So are your lates from 2006, or from 2011?  Because you said you also have lates from April 2011.  I'm not following your post.

Regardless, it has been my experience that yes, the 6-month grace period is automatically started once you either leave school completely or start attending only half-time.

If these lates are from May 2006, then they should be coming off next year (approximately May 2013).  In my opinion, it's really almost not worth worrying about, since you've already suffered the consequences for most of the 7 years that they would be hurting you anyway.  Unless you are going to buy a house or something, I honestly would just wait it out.  What's 6-7 more months at this point?

If they are from 2011, then they are hurting your score much more.  But since you know that you were in fact late, & there was no real error on their part, all you would be able to do is write them goodwill letters asking them to kindly remove the lates from their reporting.

(Now I feel like MY post in confusing!  I hope you are able to get my point.)

[jbone1]

I apologize for the mix up. The late payment is being reported from 2011. In 2005, I took time off from school to work, which triggered my grace period. Unfortunately, I didn't know there was only one.
I just discovered the derogs on my CR and I held out hope that I was missing something. Thank you so much for taking time to reply.

[laz98]

Okay, now I understand

So then your path will be goodwill letters.  Good luck! 

[jbone1]

Thank you. I will give it a shot. Will these six accounts lose their sting at the 2-year mark?

[laz98]

I've heard they count more like 30-day lates after 2 years, but I'm not sure.  I didn't really notice a change when I had that situation, but that's not to say that it won't happen!