Question On Appliedfor A Student Loans
Q: I was hoping someone might be able to give me some advice, I went to a technical school about 7 years ago (I was 18 at the time) and ended up leaving early to accept employment with my current employer. During that period I had some hardships and did a Chapter 13 bankruptcy in which the student loans were included, we have since converted to a Chapter 7 and the bankruptcy has been discharged as of 01/15/2003. After being in bankruptcy for about 4 years I lost track of my student loans and made some calls today and found that a company named ECMC.org had from what I gather, bought the loans from the previous holders. (Sallie Mae and Sun Trust) The total loan about is about 6000.00 and hasn't been paid in years so obviously its in a default status. I have just started to pursue going back to get my degree but of course because of the outstanding loans cannot.. What I am looking to find out is this... 1) Is the best way to get the student loans out of default to join their rehabilitation program and pay for 12 months? 2) When the loans are removed from default can I immediately apply for another student loan? 3) Are student loans turned down often? As you might of guessed my credit is in the toilet at the moment but I cannot afford to pay tuition out of pocket. 4) Is there anyway to possibly get another student loan and have the defaulted loans consolidated with the new loan so I can start school right away? Anyway, you can see what I am trying to accomplish so any advice would be appreciated.
A: I am also in student loan hell right now. I have been doing alot of research on getting out of default by loan rehab but I'm not trying to take anymore loans out so I might be a little fuzzy on your exact problem but I will give my opinion and provide you with some info on how you can find out about your problem. What I am looking to find out is this... - As far as making the default disappear from your credit report, loan rehab is the only way. But if you don't care if the default is on your your report I'm not sure If bringing you your loan totally out of default is required. I belive making six payments over a six month period of the 12month rehab is all you need to regain your ability to borrow student federal loans. But I am not 100% sure about it but I think its the rule. - Yes you are good to go when the default is removed. That I am 100% sure of. - Student loans are the only type of loan I know of that don't care about your credit. Its not like a car loan or credit card. All they care about is how your are doing with your students loans. Once you have dealt with the student loan you have now you are good to go. - That is a tough question that I am not clear on. I think if you consolidate the loan you maybe able to borrow right away. That is my gut feeling on it but I can't remember the answer to that one. But my gut feeling is yes. But if you consolidate without rehabing over a 12 month period the default will stay on your credit forever( no matter what anyone tells you, but if you don't care and your issue is being able to borrow again then you don't have a problem.thatswhy I am trying to do the loan rehab because after you make the 12 payments the default is removed from your credit report (thats federal law). My problem is, and this maybe your problem as well if you try to do loan rehab, is the people who have my loan refuse to give me a payment plan that I can afford. And federal law requires that a collection agency gives someone a fair and afforable payment plan according to a individuals income. The people I am dealing with tell me they want 800 dollars a month over a 12 month period and since I was downsized and can't find a good job in this economy this is a big problem for me. But thats enough about my sad situation. I must say the best thing I have done since I started trying to get out of default was reading a law guide book by nolo press. Its called " Take control of your student loan debt 3rd edition" The book cost about 20 bucks but it was the best 20 I have ever spent. This covers all