@Anonymous wrote:Have you tried an ICRP. Income contingent repayment plan. He would need to be approved, but he would send in documentation of all bills and assets to prove he can not afford the payment amount they are asking for.
Just an option. Good luck
If he defaulted on the loans in the 90s and they've not garnished his wages yet, I'll bet it's likely that they're private loans, not Federal.
Also, what makes me think they're private is the fact that he doesn't seem to have been given the option of rehabbing and the fact that they seem to just be floating back and forth between CAs, rather than having at some point been claimed by the DoE.
(Pappy ... ARE they private or Federal???? -- it matters A LOT)
If they're private, he may be out of luck on ICR plans as most (if not all) private lenders do NOT offer them.
Hopefully, that will be something addressed in the near future with Congress. Private SLs need a bit more protection regulations for the borrower. Especially since, from what I've been reading on the board, most people are having such a hard time with paying the things back. 'Specially with the "credit crisis" as it is now.
I could NOT imagine being in SL default AND having a mortgage. o_O
@LynnInMN wrote:His loans are all Stafford loans, with the exception of one Perkins loan. I have no idea what that means. No idea whether that is Federal or private, or what...
Stafford and Perkins loans are both federal.
Good to know, I honestly had no idea.
He is handing you a line. No student loan CA or guarantor froze his bank account and I really doubt they cleaned it out. For starters, to freeze a bank account, you have to have a judgement. Student loans as a general rule dont sue for balances under $100K without assets to seize. Plus, you cannot enter a rehab as if you have a judgement account. Sounds like he owed someone else funds and they cleaned him out.
Pioneer Credit is the company that withdrew all the money. They were only supposed to take 100 every two weeks, and when they got his info they withdrew $500. (Which caused him to be overdrawn) That is a fact, he lived on my couch when it happened.
Does he realize this is not going to go away? He can run but he cannot hide. They will garnish his social security once he becomes eligible.
Yes he does realize it. I don't think he is planning to live long enough to see Social Security. (No not in a suicidal way either, it is that our family seems to all work up until we die.)
He borrowed $15K. By his own admission he has run from it and allowed it to escalate. Bottom line at this point....he needs to consolidate thru the Direct Loan program. He will automatically be assigned to the Income Contingent Repayment Plan which will make his payment as a % of his income.
He already burned them on a rehab in 2002. He is currently (as of this morning) unemployed. I downloaded the forms for him, so how does it work?
Does he send the DOE a check, like it says on top of this form? Will they accept $50 or $100 when their CA wants $600 a month?
10-10-2008 11:17 AM
By the way to the "person" who sent me the private e-mail accusing me of being the "uncle" I would not use a fictitious family member to air my problems, as you can see froim my posts, I am no saint, but I do ask on my own behalf all the time.