When is credit reporting reversed?

No one likes negative credit reporting of any kind and student loans are no different.  The good news is often times loans are even more leint than other as I’ve seen them go past the thirty day mark to even as many as sixty days and beyond before being negatively reported.  The key is often…

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What is the minimum payment on a standard plan?

Well actually it depends.  It is whatever the payment would be based on the principal and interest over a 10 year period.  However, the minimum installment amount on a Standard Level plan is $50.00 but this is only if you have either all FFELP or all Direct Loans.  If you have both your minimum is…

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Whether you take out a new loan does not affect your enrollment status

This is a large misconception that exists. Your enrollment status and your FAFSA have nothing to do with each other. Two examples on opposite ends of the spectrum. Example 1:  A borrower calls in wanting to know why their status is not updated.  After explaining this is done through the school often times through NSC…

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Why doesn’t my loan company consider my expenses for Deferments, Forbearances, and Payment Plans?

One of the biggest complaints we receive is in how Deferments, Forbearances and Income Payment Plans are calculated.  In all of these examples everything is based on adjusted gross income and does not take into account car payments, mortgages etc. The reason why is actually pretty simple.

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What to do if a borrower is incarcerated

If a borrower is incarcerated it can be very frustrating for those who are attempting to take care of their loans.  This is because without a legal Power of Attorney they typically can’t act on behalf of the borrower due to privacy laws.  There is a way though. What you do: First contact the student…

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What is reported to the Credit Bureaus by my student loan company?

Everyone knows that student loan companies can (and will) report non-payment to the credit bureaus.  But the list if greater than that.  Here is what else is reported every month: -Whether loan is current or how delinquent it is; also if on a forbearance or deferment -Outstanding balance of each of the borrower’s loans -Installment…

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7 questions about authentication and security answered

Authentication can be a complicated issue.  Some  people with good intentions end up finding they just don’t have access to the information they want.  The most common excuse heard is “but I pay the bills.”  I understand the frustration since you take care of the majority of the issues tied to the account, however for…

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What happens to a cosigner during consolidation?

So here’s the scenario: You have an endorser (co-signer) on your current loan.  You decide you wish to consolidate this loan/these loans with other loans to form a consolidation.  Does your endorser need to fill out the paperwork as well? Not at all. In fact an endorser is eliminated whenever you consolidate.  The reason for…

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Need help fitting student loans into your budget? Use this to make your budget stretch!

I hear the same things over and over again when talking to borrowers. I had one borrower who said to me  that they have an “expensive lifestyle” and can’t afford their loans.  I had another that said after all their bills were paid they only had $200.00 left and couldn’t afford $300.00.  The others that…

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How to save over $3,500 in student loan interest

Many people don’t realize you can pay extra on your student loans above and beyond your normal monthly payment.  Even fewer realize what a significant different it can make. Let’s look at an example. So a borrower has loan debt of $25,0000 all at 6.8% (for easiness sake).  So the borrowers daily interest (interest rate*balance/365)…

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