Help With Defaulted Student Loans

[rsmith6621]

Lets say your student loans are in default/collections.

Because of your recent income you have not been able to make any payment at all for many months.At present it does not look like your financial future will change

You believe this may be keeping you from renting an apartment/ buying a home in a traditional sense.

So.

Are there any organizations that will take your loan out of a collections status and allow you to make normal payments so they no longer show negative on your credit report?


Thanks

[Chan790]

1. Not that I know of, but...

have you called your loanholder?

Depending on how far in arrears you are and how old the note, you may be able to pay the back balance (at once or on a payment plan) to get the default status cleared and get shifted to income-sensitive repayment or income-based repayment. Either would be better than being in default and both would lower your current payment though they may increase the size of later payments or extend your note-term.

Also, there's an NPO that provides student loan advice called American Student Assistance (http://www.asa.org/default.aspx) who can provide you with better advice as they understand the laws and regulations better. They would also know the answer to your posed question for certain.

[nirvana555]

2. I work at a career college and my understanding is to call your loan holder,the dept of education

Sould be able to tell you who it is, and they will do their best to work out a reasonable payment plan with you. Once you've shown you are committed to paying back the loans ( I believe about a six month in a row period) you can at least get into a better standing with them. The main thing is to NOT blow it off. Do Something! And you will need
to make the payments every month.

[opiate69]

3. Yes… it helped me out a great deal.. have a look.

http://www.loanconsolidation.ed.gov/index.html

Then click on "application home" for details.