Ruth asks…
how to get student loan out of default?
i originally had a direct loan, then i had a 3rd party pay off direct loan, but i was never able to pay the 3rd party, so then the loan went to the newyork higher education people, and i was not able to pay them either, so when the loan went into default, nyhes sold my loan to another debt collector.
just recently i started making voluntary payments b/c my tax returns were garnished. there’s this repayment program that the creditor wants me to apply for, but it is going to add the collection costs and 18.5% interest to the principal, and then make that amount the new principal amount!
i am already having to pay back nearly twice what i borrowed, so if i keep making voluntary payments, will my tax returns continue to be garnished? i’m not really trying to buy anything, i would just like to get my tax return….
Nagesh answers:
(Reads over your inquiry), uh oh, what happened?!? I see that you have gotten in over your head with student loan debt. I myself am in that boat . . . The trade school that I attended back in January-July 2003 is holding me responsible for a $1.6K accounts receivable balance while Sallie Mae once held me responsible for a $4.35K balance and threatened me with default as well even though I was paying them what I could when I could pay it as a show of good faith.
I also see that you have engaged the option of loan consolidation . . . Good move. It is much easier to make headway on a loan that has a fixed interest rate. In my case, I have successfully whittled both balances down to $660 and $3.71K respectively. The moral of the story — it is possible to resolve this debt if you are willing to reorganize your economy to operate at a profit. It seems that you are having this lesson played out before you with disastrous results. Remember that interchanging creditors WILL NOT abolish your debtor status!!!
What will abolish your debtor status, you ask? Reorganizing your economy to operate at a profit is your only recourse. Is there another locale where you can reside cheaply that is relatively safe, sanitary, and sane? Is there a way for you to contain your utility expenditures? Is there a mass transit system nearby that you can avail . . . And how pricey is the privilege? Is it possible to have a reliable Internet connection that is not too costly? Look at your home phone service; is there not a way to scale it back or (if it serves no purpose) to abolish it altogether? Your personal micro-economy needs to be a lean, mean fighting machine because you cannot afford denial. Air fare over to Egypt is insane these days. All jesting and puns set aside, I will not lie to you and say that streamlining your economy will be easy. Your sanity is priceless like survival is and personal solvency will accomplish both sanity and survival. There is just no reason to not streamline your economy; just do it!!!
Unfortunately, it seems that your volition about whether or not to pay has been overridden, so negotiating with your creditor is not going to have the efficiacy that it normally would have if you had kept this matter under control. I would not consent to any repayment program a creditor offers because it is not to your advantage. Ditto for electronic compensation. Like I said, streamline your economy and determine what monthly profit that you can make and then offer that to the creditor. Keep at the fight for solvency and sanity, for it is worth your while. Good luck!!!
Jenny asks…
Student private loan issue?
I started to apply online at Chase for a private student loan. The info I provided about my school which is a community college the maximum I can borrow is $11,700, but when I calculated the total for cost of attendance my estimate was $17,760. When borrowing from a lender are all private loans based on cost of attendance at the school you will attend? I thought the max per year was up to $40,000 for a private loan?
Sorry, I forgot to mention $17,000 yr. isn’t the cost of my tuition, It would be the amount needed for me to pay rent, gas money to get me to school (40 minute drive) and other expenses. There isn’t any on campus housing for students and the rent for an apartment around here starts at 1200 a month.
Nagesh answers:
40,000 is a total for the entire school year which is July to July. Of each year. And most loan companies will based upon the school set the amounts you can borrow from them. Be sure to apply for any and all other financial aid for which you qualify for.
Inside: Home equity loans | Mortgage rates
Adv: $40,000 for $283/mo – apply online
Bankate.com
News and Advice Compare Rates Calculators
Glossary | Help
Mortgage Home
Equity Auto CDs &
Investments Checking &
Savings Credit
Cards Debt
Management College
Finance Taxes Personal
Finance
Paying for college with private loans
By Lucy Lazarony • Bankrate.com
For some college students, federal aid just isn’t enough.
After maxing out federal loans, more and more college students are turning to private loans to finance their college educations.
To get a good deal on a credit-based private loan you’ll need to shop carefully. Interest rates and fees vary widely. And you may need the help of a creditworthy co-borrower, such as a parent, to snag one of the better deals.
“It’s important for students to be as informed as possible,” says Ronald W. Johnson, financial aid director at the University of California at Los Angeles. “Don’t assume one private loan is like another.”
– advertisement –
College students borrowed over $56 billion in federal loans in the 2003-04 school year, and $11.3 billion in non-federal loans, according to the College Board.
Nellie Mae reports that while private loans make up only 9.2 percent of student aid, students that do turn to private loans are borrowing quite heavily. The average debt level of a student who borrowed with a private loan in their undergraduate years is a whopping $41,900.
“Many students are being compelled to take out private loans by outdated and insufficient federal student loans,” says Marie O’Malley, a vice president of marketing at Nellie Mae.
Rising cost, rising debt
Many students turn to private or alternative loans after exhausting federal borrowing options. Despite climbing college costs, the borrowing limit on federal Stafford loans has not increased in a decade. The Stafford program is the largest source of student loan funds in the country.
“It’s just simple math,” says Carl Buck, vice president of financial aid services for Peterson’s. “The cost of attendance, particularly at private institutions, has gone up significantly and you don’t have the federal aid programs increasing their maximum borrowing lines at all.”
Undergraduate students that depend on their parents for financial support may borrow $2,625 in Stafford loans in their freshman year, $3,500 in their sophomore years and $5,500 in their junior and senior years.
“Many students simply need to borrow more than that so they turn to private loans,” says Sandy Baum, a professor of economics at Skidmore College and co-author of a recent study on student loans. “They’re also turning to credit cards.”
Federal student loan borrowing limits may have been fine over 10 years ago. Back in 1992-93, public universities charged $2,334 in tuition and fees and private colleges charged $9,340.
Today, public universities charge an average of $5,132 (up 10.5 percent from last year) in tuition and fees. Four-year private colleges charge $20,082 (up 6 percent from last year) in tuition and fees. Toss in room-and-board expenses, and the total cost for a student, at a public university, averages $11,354 and at private colleges, $27,516. It’s easy to see how a college student could be stuck with a steep education bill even after taking out a federal loan.
PAGE 1 | 2
— Updated: July 15, 2005
Going to college when you’re older
Get ready! Cost of college is going up
More college finance stories
FRUGAL NEWS
Free newsletters!
Sign up now. See sample.
– advertisement –
News & Advice | Compare Rates | Calculators
Mortgage | Home Equity | Auto | Investing | Checking & Savings | Credit Cards | Debt Management | College Finance | Taxes | Personal Finance
About Bankrate | Privacy | Online Media Kit | Partnerships | Investor Relations | Press/Broadcast | Contact Us | Sitemap
NASDAQ: RATE | RSS Feeds | Order Rate Data | Bankrate Canada
* Mortgage rate may include points. See rate tables for details. Click here.
* To see the definition of overnight averages click here.
Bankrate.com ®, Copyright © 2007 Bankrate, Inc., All Rights Reserved, Terms of Use.
Robert asks…
how can a loan officer get clients in today’s market?
to think outside of the box, what should a loan officer do to get business?
Nagesh answers:
You don’t say what kinds of loans you’re talking about. So I’ll be general.
Make connections.
Actively join in community service organizations and keep an eye out for opportunities among the other volunteers.
Help others solve their problems. I.e. Realtors are having a tough time moving houses in my area of Florida some enterprising realtors have arranged a bus tour of available houses to give potential buyers a chance to see a lot of places in a short with low pressure. If you were to help something like this up in your area there’d probably be the opportunity to originate some mortgages out of the deal.
Provide local data to other businessmen in your area. If you help them suceed they’re gonna need capital to expand. You can gather your own data via on-line surveys and such or just provide data that you have access to to businessmen that you think will need it.
Network in areas that you already love. I know of one loan officer in Florida that made several boat loans simply because he was a sailor in his own right and folks came to him for help when they needed cash. Being something of a local expert he was perfectly positioned to separate the good opportunities from the bad and even the boat inspections that he had to do were not a real chore for him as much as checking up on friends.
Bankers used to be considered “Pillars of the Community” maybe that was because they supported their communities even when profit was not a direct motive.
Richard asks…
Why was my student loan transferred when I paid it off?
My student loans were being serviced by Direct Loans. On Wednesday, I believe I made what was to be my last payment. I noticed that the status was “transferred,” okay? Today I get an email from Mohela stating they now service my student loan. What student loan? It has been paid off from what I can deduct. Does anybody know what is going on?
I feel like I might get sc3wed??
Here’s some clarification so I get no more rude responses – thanks Paul! I made a payment on Wednesday for the full remainder of the balance. On Friday, a payment posts labelled as “other” for less than 2 dollars more than the payment I had made. Then I get an email, my loan has been transferred. So, now I have to wait 2 weeks to pay less than 2 dollars to pay off the loan in full. Why would this happen. Government at it’s best? Inefficiency? I just don’t get it.
Nagesh answers:
What might happened is that you went to pay your loan, but not through loan payoff. If you went to loan payoff or say you are going to pay the loan in full, it will calculate the total principle + interests you would have to pay. Then it would be 2 days to process and shown that amount you paid.
During those 2 days, the loan status / interest could be shown that you still own them. But since you paid the loan in full amount, those 2 days of interests – it will be deleted later on once they confirm that you paid the loan in full.
If you believe you paid the full amount on Wednesday, then you could call Direct Loans customer service line to ask them for details.
William asks…
I need help with student loans?
Long story short since 2007 all my mail has been destroyed/hidden/kept from me. Everything.
Why this is important is because I am now finding out that i am close to $70k in debt with student loans. See at first it just didnt add up i went to a private college for 1 year. I failed out, the college at that time was $33k a year, now when I brought this to the attention of the account holder/loan distributor/bill payer of my college that year, she told me that all those scholarships — because i failed out turned into a giant loan equaling $26,737, that i now have to pay back to government.
How I found out about all this?? Around Christmas Chase Bank sent 2 letters that I just happened to find in the garbage (i was looking for a ring i thought i lost while throwing something away) The letters unopened with my name on them, SO I opened them and Chase Bank said that i have 2 accounts and that by calling this number provided i could seek help on making payments, so I did, I called that number and they transferred me and the woman i spoke to was pure evil, she demanded $45,123 that day. I freaked out and said I thought this number was supposed to help me? She said no, you have to pay this outstanding accounts theres no way around it. So she started calling the person who co-signed on the loans and demanding the money, see i thought you had to receive some sort of notice some sort of chance to repay loans? i dont know being as my mail has been kept from me since 2007, and i was told by my schools that they wouldnt start sending payment options until i had been out of school for a year, beginning 2011 would have been my full year out of school so i was waiting for the letters to come so i could start making payments, i never got them, i asked and no one knew what i was talking about i tried to figure out from the bank but the person who is joint with me blocked all access from me. i cant even put a $1 into that account without her being present.
And yes I am really this clueless because of the person who did all of this kept me in the dark on purpose hiding destroying letters, any opportunity i had to make payments is now gone,
I know nothing about financial, nothing at all. all i know how to do is pay the bills i have now on time, i know that if i dont pay for gas my car wont run, thats the extent of my knowledge with money, because this said person kept me from a lot growing up, cant do anything but listen to them.
i am financially stupid and you are supposed to be able to trust said person because that person owns you.
I guess what i want to know is how do i go about getting information and how do i start making payments because this is in my name and i want to take care of it, said person took away any chance i had to make it right the first time and now im almost positive its too late for a lot of it.
So the Chase Loans are “Charged Off/Written Off” — what does that mean and is there anyway to reopen them and make payments? They didnt negotiate any form of payment with me Christmas ’11, so im not sure what else i can do??
The Government loan, that is supposedly “my scholarships” I still have time to start making payments but I only make $600 a month, so I was wondering if anyone knows how I can get in touch with IBR to start making payments based on my income.
Also is it even possible for your scholarships that you earned turn into a giant loan if you failed 2 classes? (The college I went to is completely paid off, there are no bills to them whatsoever).
I just need help to get me started on what has been taken away from me. I know it cant be too late.
Please dont be hateful, if you want i can explain my situation further in an email, but i seriously had no knowledge of any of these loans except one chase loan that i never received letters for.
I know it is my fault and i know its my responsibility i will be making calls on monday to get everything started so i can get my life back i have too much to live for, a man that loves me and i wont be able to be with him without this taken car of, i want a life, i need this taken care of and i thought this could give me a headstart into monday considering i have no idea what to do or look for.
Yes this is the VERY short verison of everything i have been through in the last 6 months
Nagesh answers:
A lot of students who are gradating from college are then left holding a huge amount of student loans. Regardless of whether you have a PLUS loan, a Stafford Loan, a Federal Perkins loan, or private student loan, there are a wide variety of student loan consolidation services which are available to help consolidate all student loans into one single debt. By consolidating your student loans, this can result in a much lower interest rate, and in some cases this can also dramatically reduced monthly loan payments and help people pay off their debts much quicker. The good news is, many of the consolidation services will offer a fixed interest rates for the life of the loan, which allows you to lock that interest rate for as many years as it takes to pay off your student loans and you do not have to worry about the interest rates skyrocketing on you.
One of the first things you should look for when choosing a student loan consolidating company is their cost of service. There are various services available and the type of service you may need will depend on your particular debt situation. The cost of the debt consolidating service will greatly depend on whether your bills are current , slightly passed due or if they have been past due for months, or even years. It is important to check into more than one debt consolidating company and to be as open with them about your situation as you can. By exploring more options, you will ensure yourself you are working with a company with whom you feel comfortable with and feel you are getting a great day with at the same time.
Another thing you should consider when choosing a student loan consolidation company is the length of time it will take you to become debt free. The amount of time it takes will depend on your individual situation, so there is no set time frame which can be given up front. Once you have explained your financial situation to the debt consolidators, they will be able to give you an estimation of how long it will take to pay off the debt and for you to become debt free.
Some Benefits to Consolidating Your Student Loans:
You can receive as much as a 50% lower monthly payment obligation.
There are never going to be any penalties for paying off your student loans early.
You are able to consolidate your student loans without having to run a credit check and without having a co-signer
If you choose a federal loan consolidation there are no fee.
Your consolidation loan interest is also going to be deductible on your federal taxes.
Consolidation Companies:
Below are a few recommended resources to check into if you are seriously considering consolidating your student loans. These companies will be able to help direct you and answer questions you may have and will get you started on paying off your student loans in no time.
Student Loan Consolidator
Chase Loan Consolidator
My Student Loan Page
Good luck!hope this helped.
Powered by Yahoo! Answers