I'm pretty sure I'm confusing some of the terms bc I don't quite understand everything myself yet. Thanks for responding back so fast. And yes my father is the cosigner on the loan that's why he did some of the talking as well. Once they started talking about equity on the house it started to get a little confusing for me. But I will have to ask about the worksheet to show exactly what I can pay. The car payment isn't that much it's about 215 month but I"m paying car insurance and on 2 other loans not to mention other expenses. So that's where it starts to get really tricky and very pricey. I will follow the steps that you stated and sees how it goes. Hopefully it works out. I'm praying that it will. The one thing that I was worrying about was my credit because I was scared that it wouldn't be able to be restored. Once again thanks alot!
I began researching info regarding my situation, which led me here. Thanks to all who have gathered here to share & lend advice!
So, my student loan has been in collections with Windham since February. The initial disbursement was $6,125, at the end 2007, made a few payments in 2008, defaulted in 2009, & made a few more payments here & there when I could, filed for forbearance at one point, but ultimately kept irresponsibly ignoring & not making attempts to rectify the problem.
Currently, with WP, I owe $9,249.88 (collection fees = $1,810.70), & just recieved notice that my federal taxes ($1,045) were withheld. So, I finally called to make arrangements. At first, they offered a settlement of $7,000... nope don't have it. I was then told I qualified for "accelerated rehabilitation", & initially was offered $107 payments for 9-12 months. Unsure if I could handle it, I said no. So, they re-worked it, & asked what the lowest I could give... I said, I'd have to look at my finances, & he immidiately asked if I could do $25/month. I know that would be achievable & if it was reasonable for them, I agreed to it. THEY also advised me (before I asked) that the collection fees would be taken off after my loan was taken back by Direct Loans.
After reading some similiar situations, I'm curious why they accepted such a small monthly payment. Is this to my benefit to pay the collection agency as little as possible during rehabilition, then increase with Direct Loans?? I also asked what my refund was applied to, & they told me towards the current total. I would prefer that to be applied to the principal only. Outta luck with that?
Biggest thing I'm concerned with though, are the collection fees really going to be removed??
Thanks in advance!
I have nearly six figures of student loan debt and my payment was $50/month in rehab. There is no minimum monthly payment for the rehab program, it only has to be reasonable. Only agree to a payment amount you know that you can make for 9 or 10 months in a row because you need to make the payments on time, every time (there's a 20 day window around the due date-FYI). I was actually offered $13/month based on my family size and income but felt I could do $50 so that's what we settled on.
The collections fees of around $25K were removed from the loan balance once the rehab was complete and the loans picked up by another lender.