Carol asks…
Has anyone adtually discharged a student loan?
I owe more money than I can possibly pay back before I die. Has President Obama made any changes to the law that prevents discharge of student loan debt?
Nagesh answers:
If you become totally disabled or die, your loans are discharged. Changes have been made to allow those who work in “Public Service” areas to have their loans discharged. The catch is… You have to pay on those loans for TEN years and only the remaining balance is discharged. Since all student loans are put on a 10 year payment plan, after paying on them for ten years, you won’t have a remaining balance to discharge.
• For public service: if you are employed in certain public
service jobs and have made 120 payments on your Direct
Loans (after Oct. 1, 2007), the remaining balance that you
owe may be forgiven. Only payments made under certain
repayment plans may be counted toward the required
120 payments. You must not be in default on the loans
that are forgiven. For more information, go to
www.studentaid.ed.gov/students/attachments/
siteresources/LoanForgivenessv4.pdf.
Joseph asks…
What is an Direct Consolidation Loan.?
PLEASE DEFINE IT. It says; PAY OFF YOUR DIRECT CONSOLIDATION LOAN?
Nagesh answers:
Nowadays, many people can get into a bad credit situation if they do not keep track of their income and expenditure. Many young executives suddenly find that they are being offered credit cards by various companies. Those who are sensible will find a credit card that suits their needs, sign up, keep track of their purchases pay off their credit card bills in full each month, and ignore offers from other companies. There are others who may be dazzled by all the credit on offer and will end up with credit cards from several companies. They may easily end up making lots of purchases on credit while making the minimum payments on their cards.
Http://best-loans.awardspace.com/Loan-Consolidation.htm
Then, one day they realize just how much debt they are in when they need a debt consolidation loan to get out of a bad credit situation. At the Debt Consolidation and Debt Reduction Service, we do not give you debt consolidation loans. We help you reduce your debts by 40 percent to 60 percent and your payments by 40 percent. We see to it that you pay no interest late fees, or penalties. We get you out of debt, and out of a bad credit situation, within three years. We ensure that you receive no more harassing phone calls from creditors by negotiating with them.
Richard asks…
Federal loans while pregnant?
I have a William D Ford federal loan and I am pregnant. I am working 40 hrs. and do not qualify for a forbearance, but I am trying to save up for baby while paying current bills and cannot afford the loan payments right now. I will be on maternity leave soon and on disability. I am currently not in default…what repayment options do I have while on maternity leave? Is it possible for me to apply for forbearance while on disability? I am trying to avoid default…please help!
Thanks for that Mr. Busch, I know that I am pregnant and not disabled…but when you take maternity leave on my job, that is what they call it (temporary disability). Actually, I make very good decisions and choices, however even the best of us need assistance sometimes Mr. Busch…
Nagesh answers:
If you have not already done so, I recommend you contact (a phone conversation would be best) the U.S. Dept. Of Education Direct Loan Service offices and ask you questions:
1-800-848-0979
Hours of service: Monday through Friday 8:00 am E.S.T. To 8:30 pm E.S.T
You can also send an email by clicking the Email Us link on this web page:
https://www.myedaccount.com/ContactInfoEng.aspx
Direct Loan Servicing Center
Borrower Services Department
P.O. Box 5609
Greenville, TX 75403-5609
Source:
https://www.myedaccount.com/ContactInfoEng.aspx
Home page: https://www.myedaccount.com/
Best wishes
Ruth asks…
New Financial Aid givin if worked for public service for 10 years …?
I heard they passed a new financial aid saying that if you have worked for the public etc. Police officer or District attorney for so many years they will help pay your loans. Can anyone please give me more information on this? Thanks
Nagesh answers:
Well it’s not financial aid, but loan forgiveness. If you are in the public service sector, enroll in the Direct Loan program. If you make 120 payments (10 years worth) the balance of your loans after 10 years will be forgiven.
Steven asks…
Student Loan Changes Holder?
My Student Loan was held by Direct Loans up until this month when they sent it over to Granite State Management & Resources.
When Direct Loans called me a few years back about paying my Student Loans and then having me pay them back, they went over their rates. However, they sent my loan to GSMR without telling me their rate. GSMR adds interest on a daily basis. They don’t say what the interest is, but i owe about $30,000 for my loan and if the interest goes on for 30 days, it’s about $200 or so.
So my question is: Was Direct Loans allowed to send my loan to some other company without notifying me of their rates and without my authorization?
Nagesh answers:
Hi!
This happened to me too. But when the “servicer” changes, that simply changes the person who collects payment and manages your payoff. All terms of your loans are exactly the same as the Direct Loan terms you signed up for and learned of when you accepted the loans. This is the same with mortgage companies, when they change the servicer it does NOT change the terms of the loan- but you will have a new account # (loan #) and remittance/payment address/etc. They are allowed to transfer servicing of your loan without your permission, as it is basically just an administrative change to your debt. When there is a change of servicer you will get several letters, one from the new (GSMR) and one from Direct Loan Servicing. I have, like you, recieved my GSMR letter first. If this is anything like my change of servicer on my mortgage, the one from the original account (Direct Loans Servicing) will come in a week or so. Also, if you give payments to direct loan servicing (for the next month) they will forward it to the new servicer for you and not consider the payment late- they do this because it usually takes a month or two for people to realize there is a problem and not everyone opens their mail and reads it. Plus at this point GSMR has not given you a statement with your new account number on it.
1- watch for your letter from Direct Loan (or you can call them to verify the servicer has changed.
2- watch for the new statement with your new account #, the pay-to name has changed, and the address to mail your payment has changed. 🙂
3-If you have a payment due right away, I would suggest making one more payment to direct loans, so that it is recieved and posted to your loan correctly and will get transferred to your new GSMR account one the full transfer of accounts has completed (although it will take a little time administratively for this to be worked out). You can also call GSMR and get your account number from them over the phone if you prefer to pay them directly for your next payment rather than wait for your statement to show up in the mail.
I personally dislike changing servicers, but all in all- nothing has changed so do not stress! 🙂 Just a little bump in the road and a couple of changes to the payment process…
Best Wishes! 🙂
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