Defaulted Loan from 1990 - Consolidate, Offer, or Pay Off? Was forgiven but DOE lost all records
Hi, went to a for-profit criminal predatory type of college in 1989 and 1990. College recruiter falsified documents for me to qualify for loans that I wouldn't have received otherwise... she got a nice commission for it too and I got a bill. School closed a few years later opened a few years later as another name and again and then again. No one remembers the school I went to so that in itself makes it difficult to explain.
This student loan was originally forgiven over ten years ago and then all of a sudden one of the loans popped back up on my credit report when I am going to buy a house. I have called and called the Department of Education, FSA and the Borrowers Defense to no avail. The DOE is so messed up they lost all of my past payments (there were thousands of dollars through the years) and they don't show that the loans were forgiven. Trying to explain this to the DOE has been a complete disaster as there are so many departments/agencies involved in the decision that getting straight answers or direction is impossible.
The loan amount was originally for 5K and since no one tried to collect from me(phone or even a letter), I did not know about this until now. My loan currently sits at 11K with the interest and I am in default.
I am in the process of trying to buy a house and would like to be in the new home within 65 days. While this loan is fraudulent and I would love to fight the big fight once more I am running out of time. I have already filed with "Borrowers Defense" and they are telling me it can take up to two years to have an answer. I am also thinking about filing a consolidation loan income contingent just to make some payments on it to get it out of default. I would like to have this done asap so I can move forward with my life.
Not part of my problem above but to prove how messed up the Department of Education is. In 2015 they filed our very alive son as deceased and we were sent a letter with instructions. I contacted them and they were absolutely confused how this could happen. I promise you it did, and I have a letter from them to prove it. So now for me, they have an old forgiven loan of mine and their paperwork is messed up again.
Our family has been through so much the last few years and I already told my son he will be in the neighborhood across from his high school soon. My credit score is fine and mortgage lender is saying consolidating the loan over to another company like Navient will not change my score too much but will pull it out of default.
1. Should I Consolidate the loan which can take 30-90 days and then get out of default and wait to see about the Borrowers Defense?
2. Should I submit an offer of compromise and just pay it off?
3. Have you done an offer to compromise or a Consolidation? How did it work?