Consolidating deliquent student loans shroud of turin carbon dating problems

In addition, rehabilitating a student loan will restore your credit, and collection costs for the loans forgiven. This involves making voluntary on-time payments based on income vs. While this option is faster, credit will not be restored and you will still owe the collections fees that can increase your debt by up to 25 percent. To my surprise, even though I had only taken out federal loans, that did not automatically mean the collection agencies in charge of recouping those debts were the same.

consolidating deliquent student loans-10

Consolidating deliquent student loans

I only had myself to blame for getting into this mess. The woman also told me that all of this information was available online at the National Student Loan Data System of Students where borrowers can view all of their federal debt and get information regarding which agencies currently hold that debt.

Before I had a chance to change my mind, I called up the first collection agency on the list. I explained why I was calling to the operator, who passed me on to the correct department.

I had read online that there were options for people in default. Department of Education’s Debt Collection Service Information Center, whose number was listed on my wage garnishment order.

The first option was to rehabilitate my loans, which requires borrowers in default to make voluntary, on-time payments based on income vs. Once a borrower has successfully done so, the loans come out of default, wage garnishment is stopped, and borrowers are eligible for the same benefits available for the loan before default. The woman on the line was perfectly pleasant, but told me that I would have to speak directly with the three collection agencies that currently held my loans to discuss my options.

No more instant ramen dinners, Forever 21 jeans and boxed hair dye for me. I used my newfound wealth to go on a long-deferred vacation, to buy a new mattress, to try that amazing restaurant I couldn’t afford to visit before.

After all, I’d been ignoring my loans for so long and there hadn’t been any negative consequences so far. Sometimes, I started to feel panicked about my loan situation.

It’s not a shameful or embarrassing position to be in. And, as I’ve recently learned, we have options if we aren’t afraid to pursue them. When that job finished, I moved to New York for graduate school and deferred my loans while studying for my master’s degree in education. I decided that I didn’t want to be a teacher anymore.

We all have our reasons for being in this situation. After graduation, I spent a few years teaching English abroad and paid my student loans every month without fail.

This seemed like a win-win situation, as long as I didn’t worry too much about my credit score.

I still had no idea how much exactly I owed, or to whom, but since all of my loans were federal loans, I figured the money would eventually make it to the right people and everything would be paid off in five or six years at most.

Of course, life didn’t go as smoothly as I had envisioned as an 18-year-old. Fortunately, I had a six-month grace period before I had to start repaying my loans after graduating and I was confident something would turn up.

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