I defaulted on my student loan, i would like to attend college again. What are my options for financing?
October 16, 2010 by admin
Filed under Student loans
I am a server, In chicago. No possible cosigner for private loans. Mid to lower credit score and without a clue as to how to finish school.
Get with your school/lender and CORRECT the default stuff. Once you are on good terms with that loan. . . you will probably be able to get student loans again.
NO ONE will ever loan you ANY money for anything until you correct your defaulted loan. No car, no house. . . nothing.
Good luck!
If you are currently in default on student loans, particularly federal student loans then your best course of action is to rectify your default status before attempting to go back to school.
If you are in default on federal student loans you can work with your lender/servicer and request a loan rehabilitation plan that will allow you to make 12 consecutive on time monthly payments. Upon completing this your loans will be returned to regular repayment status and you will regain all of your federal loan benefits such as deferments/forbearances.
If it is with a private lender you will have to work with them or their collection department. It might have less options, but you still need to take care of these past issues before going out and collecting more debt.
Good luck!
The first thing you need to do is clear your default.
Contact the holder/lender/servicer of your loan. It it is a Federal Loan (stafford) you can locate this information at www. nslds. ed. gov. Federal loans can usually be consolidated (which gives you a lower monthly payment), you usually have to make 6 consecutive on time payments, and then you can get an in school deferrment on the loans. So it is quite possible you could initiate the process now and be enrolled in school by the next spring semester (Jan. . 09)
If your loans are private loans, you will have to talk to your specific lender and see what arrangments can be made.
If you really want to go back to school, short of paying for the entire thing out of your pocket, you are going to need to clear up the default. Even with an excellent co-signer, private student loan lenders will usually not give a student loan to someone currenlty in default on federal loans. Good luck.
I would use Prosper which is based on community lending. Says you can get a low rate there.
http://www. prosper. com/join/truevalueservices