student loan advice | Can I consolidate my student loans if they’ve been taken over by a creditor?

Can I consolidate my student loans if they’ve been taken over by a creditor?

Can I consolidate my student loans if they've been taken over by a creditor?


Robert J asks: I have two student loans for about 3000 dollars each. I have been unemployed for several years taking care of my kid and haven’t make any payments on the loans. Now a creditor has taken my student loans over. I now owe 9,000 thanks to fees, penalties and interest. Is there any student loan companies that will take them over and I can make payments to them at a low interest rate? Now that I’m working, I’d like to start making payments on my student loans.

Student Loan Guru: Robert, you’re probably not going to like my answer, but people come here because they know I shoot straight with them on all matters.

My first question to you would be “Why didn’t you work those years you took care of your kids?” I’m sure you could have found something, anything, to make some extra money to pay on these loans. More than likely, these Creditors are only going to get tougher until they get their money back on the student loans. C’mon, you started off with 6 grand worth of loans. If you’d only made payments of $50 each every month, you would have had them nearly paid off by now. That’s $100 per month! Hell, you could have picked up aluminum cans and made that much! Now, these defaulted student loans are only going to be a weight around your neck until paid off.

If you’re living in an area that is economically depressed, get off your butt and MOVE! Nothing irritates me more than people complaining about their circumstances and then refuse to do things that would help them better their financial condition. If you stay in an area where you can’t make much money, you only have the person looking back in the mirror to blame.

One option you may want to look into is a private loan to pay off the creditor and get them out of hair. Although, since you’ve been defaulted on your loans for so long, your credit rating is probably shot and the interest on such a loan, if you could get one, would be high.

Robert, the only other option I can see for you is to get a higher paying job and maybe even a part time job, attack that student loan debt and get it paid off. Until you do, it will continue to grow and grow. As you already know, those late fees, penalties and interest can pile up quickly.

You could also call the creditor and ask them what the settlement would be on both those loans. If they would give you 75 cents on the dollar, consider yourself lucky and do whatever it takes to come up with the lump sum to pay those off. Otherwise, call them and try to work out a payment schedule. If it was me, I’d beg, borrow or steal (just joking about the stealing part :) ) to get enough money together and pay this sucker off.

Also, as you probably already know, these loans are going to go away. Don’t think you can ignore the phone calls and letters and wake up one day and they’re gone. What will happen is you’ll wake up one day and Uncle Sam will be sitting on your chese, throwing cuffs on you and hauling your butt off to jail. All the while you’ll be hearing “Bad boys, bad boys, watcha gonna do when the come for you bad boys” At the least you can expect them to garnish your wages and income tax returns if you don’t pay them something regularly.

Even though your defaulted student loans have been taken over by a creditor, you should still be able to pay them and get out from under that student loan debt. It’s one of the worst types of debt you can have.

Can I consolidate my student loans if they've been taken over by a creditor?

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