What is the consequense for defaulting on a Federal Stafford Loan?
The biggest consequence is that your reliability is going to take a dive, a pretty big one. If you are already in default you'll have to make at a minimum 9 consecutive on time payments to get yourself out of default.
The secondly problem is that you will not be eligible for any federal aid until this is sorted out.
There are only 2 ways to get out of a federal stafford loan: death or wrap up disability (which must be documented by a doctor).
Call your lender or collection agency and get moving on this.
Creditor's have undeniably tightened up this last year so it's going to be difficult for you to even get a car loan with this on your credit.
Can A Private Student Loan Going To Default Affect My Federal Stafford Loans?
Jul 15, 2009 by yoshislilgirl | Posted in Financial Aid
Due to growing to a really bad school I am being told a private loan was taken out by Sallie Mae to help pay for that faction. I am currently in a really good school and have been paying for it with Stafford and Pell . 2 years after the loan was hypothetically taken out they say I now owe 800 some dollars and if I dont pay 159 by the end of the month then I am in default which will supposedly sham my other loans and I wont get any more loans. They won't even give me info on where the money went if it was returned to lender nothing until I originate a payment. I don't even know if this is a collection Agency or Sallie Mae at this point.
Connection Sallie Mae and tell them you suspect a fraud has been committed...this would be the case if someone is calling you about a loan that you didn't accede to to. Your question is confusing.
When they call, ask them exactly who they are and ask them for proof that you owe this debt. Get phone numbers and the name of the being calling you. Tell them you don't know anything about it and until they can show you that you owe this loan, you're not paying anything.
Also call the financial aid office at the old school and ask for your records.
How Do You Determine If The Lender Of A Federal Stafford Loan Will Charge You The 1% Federal Default Fee?
May 01, 2009 by gundo2k | Posted in Financial Aid
I Have A Private Student Loan In Default. Can I Still Get Federal Aid?
Mar 05, 2007 by alfeebester | Posted in Financial Aid
I have a undisclosed loan in the amount of $4,000 in default. It was a student loan that I wasn't able to pay on while unemployed. I didn't know about the monetary hardship rules. Anyway, I know that I can get federal grants for certain because I was even able to get them when I had a federal commentator loan in default. Now that it's out of default and paid in full, can I still get federal loans like a stafford loan? Or will I have to pay the private loan in full as well in order to get any financial aid?
as extended as it is not a Stafford or a Perkins loan, you should be good. A private student loan through a private bank is just like a car loan, or mortgage loan. You will be expert to get your regular federal loans, and grants.
studentaid.ed.gov For either genus of loan, you must fill out a FAFSA. After your FAFSA is processed, your school will review the results and will ...
What Fees are Attached to My Stafford Loan? | Student Loan News ...
Did you certain the Stafford loan has fees fond of to it? There are two divers fees engaged to Stafford loans , an origination fee and a default fee. Now here is the right tidings – those fees are coming down.
The Stafford loan program instituted a three year program back in 2008 to conclude the origination fee’s totally and convey down the default reprove. In 2008 the origination fee was 1%, in 2009 it went down to 0.5%, and outset 7/1/10 it will be 0%. That’s balmy for students! Now what about the default fee?
The default fee is also coming down from 2% and will settle on at 1% day one 7/1/10. By the way, the default fee is not an unconditional afflict. Lenders / guarantors are permitted to surrender the default fee as part of their stimulus package deal. This is critical to be versed if you are attending a FFELP train. FFELP schools suffer you to pick out your lender.
According to matter from the Yale Financial Aid Office, 399 Yale undergraduates currently stand firm Stafford Loans, the student loans subsidized or funded by the and more »
Lender That At bottom Does God's Work Is Slowed by Funding DeclineECCU in particular would proposal a ministry a larger loan than bond firms were willing to make based on that church's revenues and property values,
The bonds are backed by loan repayments and have the additional conviction of a default reserve fund. The fund will be established to buy student loans that and more »
Relation, loan default rates among former students at Utah's for-profit schools are substantially higher than for other schools. The default assess for
The biggest consequence is that your reliability is going to take a dive, a pretty big one. If you are already in default you'll have to make at a minimum 9 consecutive on time payments to get yourself out of default.