This seems to me the strangest situation...once you go into default, there is basically no help for you if you want to get out but do not have any income coming in. I amassed a good bit in student loans as an undergrad (still significantly less than the average probably)...and after getting out of school fell behind for a few years. Then decided to return to school. So, I am in grad school now. Unfortunately, I don't have the money to pay six consecutive payments. I barely have enough money for ramen noodles. Fortunately, I don't make enough to have my wages (a very small TA stipend )garnished...but that is not going to mean anything when I get out of school and there is a hold on my transcripts.
You would think they would be willing to compromise a deferment even if you are in default...if you are registered in school.
If anybody has any insight into this or experience I would love to hear about it.
Please take a moment to find Global Grad on Facebook, go to the Discussions section, and help us gather 1,000 pieces of helpful advice for current and future college students. Help students reach their full potential and avoid big mistakes along the way!
Yes, I have been there done that. It wasn't a good experience either.
My loans are federal and when they were in default were shipped out to a private collection company called PIONEER Credit Recovery. They were going to keep me in default for as long as they could.
If it wasn't for the Office of the Ombudsman I would still be in default.
I think I made 9 consecutive payments - of what I could afford - when I contacted the Ombudsman. I was frustrated because PIONEER was telling me that the consecutive payments had to be in the amount they wanted NOT what I could afford. I could barely afford the $400 I sent them every month. They wanted nearly $1000 a month.
So, my advice is to learn what your rights are and use them to your advantage. If you don't know them they will take advantage of you.
Warmest Regards,
J. Densmore
For more visit my Blog at:
Education, Student Loans and (F)utility