Ok, so I guess now was a good time to decide to get a handle on my student loan/other debt problems as things have gone from really bad to worse in the manner of just a DAY.
A couple of hours ago I get a call from Evil Collection Agency saying that my Private Student Loan was in default and this was an attempt to get a debt. "Ok, I want to start paying that loan," I say.
Not so easy apparently. Since the loan has been assigned from Private Student Loan Lender to Evil Collection Agency, the entire amount is DUE NOW. That's $28,050.84 thank you very much.
"Can I make payment arrangements?" I ask. She says no. I have to "exhibit willingness to pay" by trying to get the money elsewhere and getting denied TWICE. And, wait, I have to do this ALL by THURSDAY or they will begin collection procedures.
Yikes. I tried calling Private Student Loan Lender all morning, kept getting transferred around. Now everyone agrees that there may be one person who can help me get back into their system, i.e. get my loan out of collection, but she hasn't returned my call yet. I'm praying she does before Thursday as I really really don't want to have to go to two banks by that time and KILL what's left of my credit.
Addressing Other Debt
In the meantime, I've been able to do some research on the default process.
Apparently, if your loan is a Federal Loan and you are in default there are ways to rehabilitate it through the Department of Education. I called them, they were very nice, told me I was not in default on my federal loan but that I should contact Aunt Sallie ASAP.
Then I log into my account on my federal loan and find out that yes, I am 262 days late. Yes 262 days. Good job Sallie's Niece! Owing to my research I have discovered that whereas private loans go into default after 120 days, you have 270 days for federal loans.
So I just made it! I guess I should not be too happy to realize that my inaction the past several months has cost me over $200 in late fees but I sent them $80 to stop the clock ticking.
Note: I don't know if $80 will be enough to stop the default as my past due amount is over $3k but it's literally all I had at the moment and I am sick and tired of calling loan companies today.
One possibly rehabilitated loan
One loan that will perhaps begin collections on Thursday
$87 in the bank to get me until next Wednesday. Not counting transporation costs to Mother's Day or neccessary Mother's Day present yet to be purchased.