Student Loan Number 1

I wasted so much time last Thursday….

My first student loan is now officially out of default status!!!!  (The quadruple exclamation points show how excited I am) It should never have been there in the first place but that’s a previous mistake.  Except….it almost didn’t get paid for this month. I’d have been upset as I’ve worked really hard to get it out of default and didn’t want it to get placed back in default and according to the loan rehabilitator that I was working with, one missed payment would send it back into that icky status. I’ve been waiting on a statement from the company who bought it as I was told this should happen in a few weeks after it was rehabilitated and it was rehabilitated at the beginning of May. (In fact, the payment that was processed in June was considered an “overpayment”) I never received anything—and no payment was taken out of my account for June.So I gave them a few days what with the 29th being a Friday and then July 4th occurring to see if they would process my payment but still nothing!  After a two-hour period where I called one company after another, I finally found out who I should contact.  Keep in mind that I had to verify my address with every single phone call.  I finally get in contact the company who owns the student loan and verify my current phone number and work phone number with them.  The address is one from 5 years ago.  They did find it funny that all the letters they sent to me were returned to them though.  (*eye roll*) And then I find the payment jumped up about $110 more than was agreed on with original collector and was due in two days.  Ha, funny.

So I talked to a customer service rep and was able to put it into forbearance for 6 months.  I want to do the 6 months and not the year as I really am trying to pay these student loans off.  I’m just not going to be able to afford this larger payment right away.  So I figure if I continue to put aside the amount of money into my account that I pay this off with, I can pay on some of it as I can and work my budget to be able to afford the larger payment.  Another reason I want to wait on reworking the budget is that I am still waiting on that news for the other student loans I have.  I’m hoping to hear from that in a few weeks—this will give me a much better idea on how much I need to budget for.

To sum up: not a good experience with the company who bought the loan at first but they’ve redeemed themselves! My new plan is to try to pay some of the student loan (which is actually two loans but lumped togetherish) while it is forbearance. And then to find out how much the other student loans will be and get my budget worked out.  I’m glad that my plan is working out so far and I’m moving in the right direction to get out of debt.

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26 Comments on “Student Loan Number 1”

  1. It amazes me how difficult creditors sometimes make it for people to do the right thing. Happy to hear your plan is moving in the right direction!

    • bogofdebt says:

      Thank you! And yes-it was extremely frustrating. Especially when the lady on the phone was telling me that all information was sent over with my loan information but somehow the address was still incorrect. And the “huge” jump in the payment terms didn’t help either. I know it wasn’t really that huge but it was to me when it was due 2 days from that call!

  2. addvodka says:

    Oh congrats! That’s awesome. Creditors suck. I’m sorry it’s been such a difficult ride for you!

    • bogofdebt says:

      Partly my fault (younger me making horrible choices) but I’m getting there. I was just glad they were able to put it into foreberance prior to my payment due date.

  3. Alice says:

    You might check on whether or not you can do some type of graduated payments. That is what I did – 24 months of ridiculously low payments, then 24 months with slightly higher payments and so on. Since everything else I have will be paid off by the time the next time frame starts, I can start paying tons of money each month to get them paid off. I just needed that little bit of breathing room for a while to get adjusted.

    • bogofdebt says:

      Thanks for the tip Alice! I’ll be calling them a few weeks before they come out of foreberance. That would be really nice. That way I can pay extra when I can and get it to go down farther. I know they mentioned something similar to what you mentioned but it was going to take a month to go into affect–which was why I needed to put it into forberance right away.

  4. DebtsnTaxes says:

    I hate it when other companies buy out loans. I’ve never heard of an experience where everything went smoothly. Don’t know why that is, you would think they would know what they are buying and get everything worked out beforehand if they want their money. I hope the rest of it goes smoother for you.

    • bogofdebt says:

      I think one of my comments to one of the many reps I talked to was “it appears no one wants my money.” 2 of the companies I talked to were still on the agreement but didn’t accept payment and kept pointing me back and forth. Such a hassle! But at least it’s cleared up and I am continuing to make good steps forward right? (They might be baby steps but they are in the forward direction so that equals good in my books!)

  5. Good thing you got it fixed. Can I ask if your servicer was FedLoan? Sounds like a very familiar story I’ve seen and discussed hundreds of times on my site.

    • bogofdebt says:

      Nope my new loan servicer is AES. It just took forever as I was told it was Suntrust (very true as AES is Suntrust I guess but they don’t accept payments and thought that it was HESC who I had to pay. HESC told me it was Suntrust who then said “well maybe this number will help….” and so on and on.)

  6. kathleen says:

    I like your attitude — leave past mistakes in the past! Good work!

    • bogofdebt says:

      Thanks! It was something my mom taught me-her phrasing being “Don’t regret any past choices. They make you who you are-I have three beautiful kids because of my “mistakes” and I wouldn’t change anything.” I try to keep that in mind 🙂

  7. mycanuckbuck says:

    Congratulations!!!! (note the 4 exclamation points). You think they’d want your money, but apparently they don’t.. 😛

  8. Good for you for going into forbearance – that’s a move a lot of people are hesitant to make for one reason or another! And I hear ya on the customer service runaround… one day, those people will figure out how to make our lives easier, not monumentally more difficult.

    • bogofdebt says:

      I think the worse thing about the customer service reps was I’ve been a CSR for most of my life–and I don’t think I ever did something like that! But it’s worked out now and she put a rush on it for me so it wouldn’t show me being “late” on a payment. And going into forbearance is something I wish I would have done much sooner.

  9. Rachel says:

    Wow – stinks about the default, but I’m really happy you have figured it out and it’s now in repayment again! Woot!! One of my loans has an income-based repayment, which helps keep my total payout to student loans at $700 a month. I’m in student loan hell. Once I have a new job, they will be my priority. The first one will be the $2400 I owe for a loan I co-signed with my mom.

    • bogofdebt says:

      Thanks. And I wish this one was eligible for income based but sadly its not. I’m glad yours are though–that’s still a steep sum for being income based.

  10. queenlbee says:

    Congrats! This is a huge step and I’m excited for you–I only have a very small loan so I am in a different boat, but it is like the monkey on my back.

  11. We went through this in the past when trying to clear up a couple of accounts that went to collections. As you say, you’d think they would WANT your money, but please, keep making it difficult for me to pay you. Sigh.

    Great job on making forward progress. Even baby steps count!

    • bogofdebt says:

      I like baby steps rightnow 😉 And yes, I was getting so frustrated with them. One of my last calls the CSR asked “and do you have an account being held with us?” My frustrated/joking but not really answer that slipped out was “I have absolutly no idea. You would think I would know but I don’t. Hopefully you can tell me. What info do you need to find this out?” It wasn’t being held with them.

  12. belowhermeans says:

    Onward and upward! Proud of you.

  13. […] holder doesn’t take my money on the 25th as was previously scheduled (this actually happened with my other loan.  It was sold but the previous company took the payment as scheduled.  It worked out in the end […]

  14. […] “payments” but it didn’t feel real as it was to get the loans out of default status.  And the one loan went into deferment so I haven’t made a payment on it.  (As much as I wanted to, the car had to come first along with […]


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