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very old government student loans doubled with interests

Date: Sat, 11/05/2005 - 21:22

Submitted by anonymous
on Sat, 11/05/2005 - 21:22

Posts: 202330 Credits: [Donate]

Total Replies: 1

very old government student loans doubled with interests


I have a government student loan that has doubled with interest because it is over 10 years old. I have had a rough past but am trying to start my life fresh and have been paying the student loan now for 10 months, $95 a momth, they still continue to add $20 late fee extra every month but I struggle to pay this off. Now, just last month I was contacted by a collection agency collecting on an old "Perkins Loan", another school loan. It was originally $925. and now is $2,914 and change. I am really flipping out, I am not working, right now I am going to a vocational school and hope to have a job by probably in summer of 2006. Will they be able to take my entire pay check then? What can I do if I really have no more money to give them? I have no credit cards, bank account, nothing. I understand it is my fault for not doing the right thing when I was young but I am trying to make amends. Does anyone have a suggestion as to how to deal with the Perkins loan ?


rickartbrush,

The alternatives that you have in your hand are-

  • Forbearance
  • Deferment
  • Consolidation
  • Rehabilitation
Both forbearance and deferment can temporarily delay the payments, but as you are already defaulted on your loans and it is a very old debt, your loan holder might not allow you a forbearance or deferment.

However; you can contact your lender to know if you can enter into forbearance or deferment state. Since you would be getting a job in next year, it could help you to convince your loan holder.

Or, you can consolidate or rehabilitate your loan. Consolidation program will cover all your student loans and help you to pay off all the loans with one monthly installment that is supposed to be much lower and the rate of interest is also reduced to large extent.

Rehabilitation will also help you to pay off your debt, but in this process the monthly payable amount might be larger.

As you are going beck to school, you might be looking for federal grant. Both consolidation and rehabilitation can help you get further federal loan. Please visit the page here for details-
http://forums.debtcc.com/forums/backto-school.html


lrhall41

Submitted by 4u.bryan on Mon, 11/07/2005 - 09:35

( Posts: 819 | Credits: )