ignorant and seeking advice

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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ignorant and seeking advice

Postby cahwc12 » Mon Dec 24, 2012 3:41 pm

I was lucky to graduate from UG with no debt, but I withdrew from graduate school a year later with ~$14,000 in debt. I left the country for two years and went into default on my loans. I haven't heard anything from my lenders in almost three years, and am honestly not even sure how to get in touch with them. I want to get out of default as soon as possible, but I'm returning to get a second bachelor's in EE starting in January because I can't get find a job with my liberal arts degree. I plan to pay out of pocket working part-time and get personal loans from family to cover the difference for this (~$16,000 from now until next summer) because I don't think I can qualify for student loans due to being in default (or is that wrong?).

I apologize for being extremely ignorant about all this, and I should have made attempts to service this debt 2-3 years ago, but didn't. I don't even really know how to begin searching to educate myself about this, so I'm hoping to be steered in the right direction. That said, I'm looking for advice and/or answers to the following questions:

1) How do I get in touch with my lender(s)? I honestly don't know where to start.

2) Should I consider loan consolidation? I believe I have three separate loans totaling ~$14,000. That could be higher or that could include the interest now... I really don't know.

3) I think I forfeited any right to forbearance or deferment when I went into default, but in going back to school, is there any chance I can convince them to change their minds?

4) What is generally needed to get out of default status, and when I do, might I qualify for future loans?

5) How does all this affect my ability to get any student loans for law school? I was going to apply this cycle but decided to return for the BSEE and instead apply for the 2013 cycle. One of the primary reasons for my waiting until next cycle is being super debt averse. Having tasted just this $1X,000 in debt, I'm scared shitless of $200k+.

Thanks for any advice/answers.

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Re: ignorant and seeking advice

Postby TripTrip » Wed Dec 26, 2012 1:44 pm

First off, you're going to get another bachelor's AND THEN go to law school? Why? It seems to me like you need to decide what you're going to do long term. If it's not law, don't go to law school. If it's not electrical engineering, don't go back to undergrad.

cahwc12 wrote:1) How do I get in touch with my lender(s)? I honestly don't know where to start.
...what? You got the loan. How did you get it? Through your UG? From a bank?

If you really can't remember anything, go get a free credit report (--LinkRemoved--) and it should reference your debts.

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Re: ignorant and seeking advice

Postby cahwc12 » Wed Dec 26, 2012 5:46 pm

Thanks a lot for your reply. I've been interested in IP for years and EE seems like it will give me much better job prospects in law school and especially if LS doesn't work out. Right now I don't qualify for the patent bar (although I could with another semester of physics, but I'd still be without a tech degree). The EE degree will take one additional year of coursework, and since I didn't get the score I wanted in my October retake, and had planned to enroll in another semester in the spring anyway, I thought I would just sit out the cycle, get a second degree, retake the LSAT and then apply early next Fall.

I went to the link you provided and I got a credit report from experian, but the debts in question have no numbers associated with them. I got the loans in august 2009 and january 2010 from the department of education through private lenders.

The 3 loan amounts are:
$2,694 --> $3,326
$4,250 --> $4,856
$2,694 --> $7,041

I have no idea why the third one is three times as much as the original, while the others have moderate interest accrued. All three have the same address listed and no contact number. I do have a US DOE - Direct Loans contact number, but that was closed in 2011 as "transferred, closed."

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Re: ignorant and seeking advice

Postby J-e-L-L-o » Wed Dec 26, 2012 11:47 pm

Call DOE. Just because it is in default, doesn't mean you can't fix the problem. You can even rehabilitate the loan to put it back in good standing.

A lot of good info here:


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