Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Student Loans
Profile Image

Question By
rrvaliente98

1 Contribution
0 People Helped
Paying off defaulted loans vs Rehab
I have a defaulted Sallie Mae student loans which is through USA Funds. Is there any benefits to putting the loan into rehab vs paying it off completely?? Anyone, have similar experience?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
7362 Contributions
3808 People Helped

A rehab will help you get back on track with payments so that you might be able to get forebearance or special repayment plans.  There is a chance of forgiveness if you meet the specified criteria, but you are not eligible for that as long as you remain in a default status.

And, you still must make loan payments until the loan is paid off or forgiven.  Student loans, in general, remain collectable until paid off and cannot be discharged in bankruptcy. That is one of the benefits the student loan industry got in a revision of bankruptcy laws several years ago.

1 Contribution
0 People Helped

Question, Student Loan Rehab Payments

Hey Guys,

When you are in the student loan rehab program, are you allowed to pay more than the normal monthly payment that was set up? Say, youre afforadble and reasonable payment was set to $50.00. Could you go ahead and pay more $100, to help reduce to cost?? Has anyone payed off their rehab loan completly before the 9 months? Or do you need to strictly stay on that 9-10 month program to have the default loan status cleared?

Thanks

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.