Defaulted student loan, ed fund rehab payment to high

SoapLady will be along shortly. She's our resident student loan expert.

thanks! I've read up on some of her responses! I cannot wait!

Also an update: I spoke with Edfund again. After being disrespected by several employees (one woman actually mocked me and said "what are you a lawyer" why yes I am.) I finally got to a manager who acknowledged that I have a right to reasonable and affordable payments and said I could submit the application. He asked for several documents including bank statements (??) and my rental agreement, W2s and unemployment check stubs along with a letter stating not able to make payments, what my hardship is and acknowledging that my payments would go up. The thing is, he told me that it "might be approved" and that "$100 is really low and you should probably offer more like $200-$250" but that's not really within my price range. I also don't like the fact he told me that he would be looking at my bank statements to see if the amounts I gave him were really being deducted. This seems a little invasive. Is all this ok and normal? Soaplady I look forward to your wisdom.

Reasonable and affordable works two ways...it has to be affordable to you and reasonable based on your loan size. A standard payment for a $40k loan is $400...a $75 payment although affordable is not reasonable.

Personally I would recommend going straight to consolidation.

Hi Soaplady, thanks for your response. You think consolidation would be better even though the negative remarks on my CR would remain? I was wondering how "bad" it looks...the next 7 years of my life will probably involve buying a home (I'm 28), trying to take over the loan my father got me for my car, and also I'm trying to work for the federal government (ironically). Does the collection,paid in full make any of these things unlikely or especially difficult?
Thanks so much

28 not 28) lol

Reading your post again....you must have defaulted on numerous loans or a consolidated loan. There is no way you could have a single loan for $40k

The negative tradeline reports for 7 years from the date of default. Most mortgage companies only care that you are not in default...in current standing....at least that is the way it used to be.

thanks again, yeah it was 7 loans all secured by one lender. I'm sure that's probably not the correct terminology but hopefully you know what I mean. I had the loans with US Bank/northstar and the guarantor was edfund. I defaulted with them, edfund paid them off and I was sent to edfund internal collections.

If I consolidate with direct loans (Where I'm on deferement) would I be able to defer immediately upon consolidation or is there some time of waiting period? If the negative tradeline reports aren't going to be a big deal I am going to take your advice and consolidate asap. It's mind blowing how these companies won't let you know your options. I guess it really shouldn't surprise me given that these loans were for my law degree. Ignorance of the law is no excuse.

I'm not sure if you would know the answer to this, but does a default on a federal loan make you ineligible for federal employment. I'm really trying to get on as an attorney with a federal agency and am worried that the default, even if consolidated will be a negative mark. Although I'm sure they'd only find this out after they'd agreed to hire me thus making it a little more difficult for them to fire me. At least I'd hope.

As far as I know, as long as you are out of default, it will not affect employment.

Call a mortgage lender and ask them what current requirements/standards are. When I was collecting, lenders including FHA/VA would fund mortgages as soon as the loan was taken out of default either by rehab or consolidation.

You will probably want to consolidate all the loans you currently have with Direct Loans with these. If you qualify for deferement such unemployment or hardship, you can defer them again.