Need to reduce defaulted student loan to affordable payments

Submitted by Royfromtexas on Fri, 06/06/2008 - 22:24

I have a defaulted federal student loan that I consolidated in 2002, but never paid. Allied Interstate is after me for $52,000. I cannot afford to pay more than $200 a month. Is there any organization that can work with me to chop down the outrageous cost? I've tried all of the big names, and they can only do $500 a month, which is impossible. Help?

Post your question in the "debt forums" (use the link at the top of the page) has a specific board for student loans.

Sat, 06/07/2008 - 04:28 Permalink

If you call the company and ask for "A fair and reasonable payment plan" They will work with you. I read that line a few years ago when dealing with my husbands defaulted account. Basically, you tell them your income and expenses and they get a figure from that.

Sat, 06/07/2008 - 05:42 Permalink

Hi Royfromtexas

The US Education department and companies accept monthly payments that are reasonable to them and you both. You can call the US education dept at 1-800-621-3115 and I think they will be able to solve your problem. You can also go for loan consolidation program which combines several types of federal students loan to simplify your repayment.

Sat, 06/07/2008 - 05:50 Permalink

There are two types of loan consolidation programs. Firstly you can go for Federal family education loan (FFEL) or direct loan programs to consolidate your student loan. Under the FFEL , depending on the balance due, you can extend the repayment period till 30 years.

Sat, 06/07/2008 - 06:11 Permalink