What should I do?

[Anonymous]

I have about 10 different Fed student loans with Nelnet. I
My loans went in default in Oct 2017. On my credit it shows 60 days late for all of these different loans. I was able to but it in deferment. My credit report reflects Nov 2017 to date as current. Are there any steps I can take to help my credit score?

ALSO, should I start paying at least a "lil something" towards these amounts? Would that also help my score?

[Anonymous]

If your score dropped from the 60 day late payment(s) the only way to get it to go back up is to get those 60 day lates removed.  In order to do that, you're going to want to talk to the creditor.  Perhaps start with a phone call and see if they're willing to work with you.  Paying them may entice them to work with you more on it (rather than not paying them).  You could also send GW letters if your phone conversation result isn't favorable.  To find out more about that, hit the rebuilding forum and do some reading on the subject there.  Your goal needs to be the removal of those late payments by whatever means necessary.

[Anonymous]

     BrutalBodyShots gave you the best advice and a place to go to start helping yourself. I agree with everything BBS said; however, I am a little confused by your time and statements.  You said, “My loans went in default in Oct 2017. On my credit it shows 60 days late for all of these different loans. I was able to [put] it in deferment. My credit report reflects Nov 2017 to date as current.”

     Okay let’s start with the time. You say your credit shows 60 days late, but you never said how many days you are REALLY late. The US government says a few things about this (here’s a good starting website by the government) https://studentaid.ed.gov/sa/repay-loans/default “If you do not make any payments on your federal student loans for 270 days [or 360 in some cases] and do not make special arrangements with your lender to get a deferment or forbearance, your loans will be in default.”  

     Are you sure one or more are not delinquent? “A loan is delinquent when loan payments are not received by the due dates. A loan remains delinquent until you make up the missed payment(s) or receive a deferment or forbearance that covers the period when you were delinquent.”

     You also said you put IT into deferment. Is IT all your loans or only one or some? Once again I go to the law. The Feds say that the “two options for postponing repayment of your student loans are deferments and forbearances.” If you have a deferment for all your loans then you should not have a problem; HOWEVER, make sure it is all of them, but that does not eliminate a delinquency unless it is a retroactive deferment!

     Finally, you say; “My loans went in default in Oct 2017.” If they are in deferment they cannot be in default. When all else fails I go to the law. A defaulted loan is when there is a “failure to repay a loan according to the terms agreed to in the promissory note.”

     Fundamentally, do what BBS said and visit the threads in the rebuilding area; but I would also suggest you find out your true status before you start posting (the community will ask you many of the same questions I just pointed out).

     There are two final points. First, generally you cannot discharge student loan debt in BK and second, be aware of the CAIVRS problem if you are a vet or another type of eligible person. The Credit Alert Interactive Voice Response System will note the problem and you will be ineligible for certain types of loans (VA and Farmers for two examples). You can pay off your loan, have it drop off your CR after 7 or 10 years, and still be in the CAIVRS. From discussions I have had with other folks, it almost takes an Act of Congress to get off that system. Good luck!

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