I'm lost - Having student loan, Collection agency calling me

uptheriver01,

Welcome to forum. This is a place where all of us can share our problems and financial doubts freely. You are not alone in the boat. Lots and lots of people are suffering from this type of problem. So don't get scared.

I would suggest you to negotiate with the collection agency and ask them after how many consecutive payments, they will report it as rehabilitated. Rehabilitation helps you achieve good credit sooner. But rehabilitation has some drawbacks also.

It seems that your student loans are under forbearance. Don't forget that you have to pay the loan back when Forbearance period is over.

Consolidation is the process that can help you to pay the debt with easy installments and within a short time as well. I would suggest you to register with this site and avail the free counseling.

For any more queries, please post your question in the forum, best of luck.

You can request that they backdate the forebearance or deferment to the date of your last payment, at some servicers this will negate the money you currently have due (you will still owe it); and if you do this soon enough you will also avoid having the late payments reported to the credit bureaus

Are they asking for the balance in full? Is that what you can't come up with? Well, no foolin! Hardly anybody can reach into their pants pockets and pull out a five figure chunk of pocket change. Talk about rehabilitating this loan with your collection rep. Depending on the size of the loan, rehabilitation calls for at least 2% to 10% down an 1.5% monthly for one year. Then your loan is purchased and refinananced by Sallie Mae with your penalties waived. Your credit will show the loan as anew and not defaulted, and you will have nine years to complete the rehabilitation. Don't be scared!