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New loan info, need some advice

Date: Wed, 04/09/2008 - 15:18

Submitted by spartacusri
on Wed, 04/09/2008 - 15:18

Posts: 7 Credits: [Donate]

Total Replies: 4

New loan info, need some advice


I been having a terrible time getting some aswers I been talking to the Dept of Ed obudsman. Basically today she told me I would never pay off my loan. I am defaulted. I owe 19k principle, 19k interest and 9k for penalties. I have to pay 328monthly. She told me the whole amount goes to the interest and penalty. So nothing goes to principle. If nothing goes to principle how do I pay off my loan? She couldn't answer me. She mentioned rehab but still couldn't tell me when I would pay against my principle. She told me $260 a month accrues in interest. If thats true then 328 is not making a dent. I am totally lost and can't get a straight answer from anyone. Collection agency just wants the money, the Dept of Ed person had to keep putting me on hold to look up answers and the obudsman office told me i would never pay this off. I am so fried right now. Anybody know the truth or someone I can contact?

Sadly I know understand what obama is talking about with student loans. How do you ever get out of default? I asked about a one time lump sump and they want 30k. No way I can do that. I am paying for a Harvard education for a certification I got from a technical school which I have never been able to use.


It very difficult for someone give you a straight answer because there are so many variables. With $19k in past due interest, you can hardly expect money to be applied to principle without the past due interest being paid first. I just played around with the student loan calculator and calculated that if you consolidate, you will pay that $328 for 25 years and your loan will be paid off. Of course you are not going to make a dent in the balance quickly...it is going to take time and steady payments.


lrhall41

Submitted by SOAPLADY on Thu, 04/10/2008 - 06:59

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So after 25 years I will pay over 98k on a original balance of 19k for a technical degree I will never use. And 25 years from now put me well into retirement age. Does that sound right? Look I know I messed up. I should of been paying more attention to the paperwork but I was young and naive and thought I was going into a great field but this just don't sound right. Today the Dept of Ed. obudsman called me back with info on rehabbing my loan, and they want me to raise my payment to do so. I can't afford what they want now and they want me to raise my payment. Right now I am looking at robbing a bank, seriously.


lrhall41

Submitted by anonymous on Thu, 04/10/2008 - 19:10

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I spent last year rehabbing my student loan, I paid a little more than I could afford, but it was worth it. This year I received my first tax return in five years and now I only have 110 payments to go. They also forgave about 4,500 dollars in penalties for making my 9 rehab payments on time. So maybe thats something you can negotiate.


lrhall41

Submitted by anonymous on Fri, 04/11/2008 - 08:36

( Posts: 202330 | Credits: )


I am going to start working on the rehab also. But right now they don't have a lender that is willing to take on loans. So it could be more than 9months. They also said the penalties would be forgiven if I finish rehab. But as usual I can't get a straight answer. I was told my loans were at 4% today I was told 8-9%. Also found out that every 6 months they will review my case and adjust my payment up or down accordingly. I was going to pay off my car early but no reason to now. I will be out the money I put aside and they will take the monthly money I would be saving. I feel like I am in a big hole and just can't get out. Don't even see the light. :(


lrhall41

Submitted by spartacusri on Fri, 04/11/2008 - 14:53

( Posts: 7 | Credits: )