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William S. Richardson
Guest
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| Posted: Tue Feb 24, 2004 7:40 am
Post subject: Negotiation after consolidation? |
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Greetings:
I consolidated some hefty school loans several years ago (after a default)
when the interest rate on the consoldiation was extremely high. The
consoldiation with the 18.5 made the loans monstrous for many years to come.
Is there any way for me to renegotiate the consoldiation now that the rates
are so low? Is it possible to negotiate a settlement once you have
consolidated the loans?
Thanks for any info.
BR
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Steve Blank
Guest
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| Posted: Tue Feb 24, 2004 10:04 am
Post subject: Re: Negotiation after consolidation? |
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William S. Richardson wrote:
| Quote: | Greetings:
I consolidated some hefty school loans several years ago (after a default)
when the interest rate on the consoldiation was extremely high. The
consoldiation with the 18.5 made the loans monstrous for many years to come.
Is there any way for me to renegotiate the consoldiation now that the rates
are so low? Is it possible to negotiate a settlement once you have
consolidated the loans?
Thanks for any info.
BR
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Current law does not allow for a re-consolidation. I did see something
awhile ago that Congress was considering changing the rules to allow for
re-consolidation at the now lower rates, but I've heard nothing further
about it and suspect that it may have died.
If you have the necessary credit rating you may be able to obtain some
kind of personal loan from a bank to pay off the higher rate.
--
Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761 |
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John Tolleson
Guest
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| Posted: Thu Mar 11, 2004 4:10 am
Post subject: Re: Negotiation after consolidation? |
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"William S. Richardson" <richardsonrichar88@qwest.net> wrote in message news:<T6x_b.90$%e4.48952@news.uswest.net>...
| Quote: | Greetings:
I consolidated some hefty school loans several years ago (after a default)
when the interest rate on the consoldiation was extremely high. The
consoldiation with the 18.5 made the loans monstrous for many years to come.
Is there any way for me to renegotiate the consoldiation now that the rates
are so low? Is it possible to negotiate a settlement once you have
consolidated the loans?
Thanks for any info.
BR
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Hi BR
I think there may be a legal loophole that might work in your
situation. I had defaulted on my student loans and consolidated my
loans with Direct Loans which is a US federal program. The loophole is
this: They have a repayment plan called Income Contingent which is
based solely on your income. Your payments range from $0 to a % of
your current income. The law as I understand it, requires them to
accept your consolidation if your current lender does not have such a
plan. I am not a student loan professional nor a lawyer but I have
done this myself and would be glad to refer you to this program if you
think there is a chance it would help you.
John
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