Re: Credit emergency!

Posted by MCM bait (66.149.179.202) on February 29, 2004 at 22:21:59:

In Reply to: Credit emergency! posted by anon on February 29, 2004 at 13:49:43:

If your student loans were guaranteed by the government and charged off, DO NOT contact the CA's!!!

Check to see if you can rehabilitate or consolidate the loans directly with the government. The CA's have NO SAY in it at all, and you don't need good credit to qualify. Check out the links on this page: http://www.ed.gov/offices/OSFAP/DCS/repaying.html

If you rehabilitate, it will take a year to clear your credit, but all of the lenders will have their entries in your credit report moved. You'll have nine years to pay off the loans.

If, however, you don't think you can handle twelve months of "reasonable payments" then try consolidation. It hurts a bit at first because you have to pay the full payment for three or four months, but its a NEW loan. Once you make three full payments, you'll be able to choose a repayment period that will significantly reduce your monthly payment. About 18% of your total indebtedness will be added for "collection costs" but if your loans are small this will be more than worth it.

Believe me, you will not regret it. Student loans do not have a SOL, so you can be hounded forever.

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