Student Loan in Collections, please help
Date: Tue, 05/26/2009 - 15:25
Student Loan in Collections, please help
I am soon to be a single mom, with basically no assets, that brings home less than $500.00 a month income. I owe (now that the CA has added more fees) about $30,000.00. I now have a collection agency after me for my student loans, I was going to use a company called Default Management Services Inc. Has anyone heard/used them? I've considered offering the CA 15% of my income, which is what they will get if they take me to court, right? I think maybe I should send a certified letter with proof of income stating I want to rehabilitate my loan, using 15% of my income. Is that a good option for me? I also saw to call that 1-800-4fedaid on another post, but would they bother with me in my situation?? Please help!!
For starters the CA doesnt add the fees, your guarantor does. S
For starters the CA doesnt add the fees, your guarantor does. Secondly, they do not have to take you to court to garnish wages under an admin wage garnishment. Paying $50 on a $30K loan may be affordable to you but not reasonable to them, so rehab may not be a good option for you. Have you looked at consolidating under the Income Contingent Repayment plan with Direct Loans?
Income Contingent Repayment
If your loans are in default and in collections, can you use Income Contingent Repayment plan?
When in default, it is the ONLY consolidation plan can you can t
When in default, it is the ONLY consolidation plan can you can take.
consolidation
I consolidated my loans 100,000 about eight years ago to Direct Loans, my loans in default, can consolidate them again. The interest rate is about 6 or 7 percent.