Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

A confusing student loan situation?

I am trying to help my neighbor figure out what is going on with her student loans.

A bit of history she had defaulted a few years back and very recently completed a loan rehab program. Right before compleation of the program she was offered the chance to participate in the William D Ford Program (what ever that is) She filled out all the paperwork and sent it back. She selected the Income Contingent Repayment plan.

Soon after that she is sent notice that Sallie Mae is the new lender (before finishing rehab it was GRC) and that her new payments would

be $50.08 instead of the $58.00 she was sending to GRC. The new payments were to begin Feb 24, 2009. (she even has a payment coupon book)

She called GRC to see if she still had to pay them in January and was told that she did not.

Then In January she receives some paperwork from Direct Loans (the same paperwork she had just submitted to GRC) She contacted direct loans and told them she had already sent the info to GRC Direct Loans told her that she would need to send the paperwork to them anyways.

Before she could even send it in she gets another letter from direct loans confirming that she has elected to participate in the income contingent repayment program and that her payments would be $0.00 and that there is $0.00 owed.

She calls direct loans to verify who and what she is supposed to pay.

She is told that until consolidation is finalized to pay sallie mae the $50.08. When consolidation is finalized her payments would go to $0.00.

Thing is every income contingent calculator she and I have been too her payment does not come out to $0.00 it comes out to anywhere between $25 and $140.

Can some one shed some light on the real deal here?

Thanks.

3 Answers

Relevance
  • Anonymous
    1 decade ago
    Favorite Answer

    At this point you should just wait it out about a week or two. Go ahead and have her make her first payment to sallie mae. After sallie mae has received the payment call them and ask what your loan status is. More than likely the information between the 3 companies is passing in the mail or is just not getting to the person it needs to quite yet. Frustrating, huh?! Student loans are no fun. Good luck!

  • 1 decade ago

    I wouldn't stop making payments until I knew for sure what the heck is going on.

    It makes sense that if she is going back to school her payments would be zero since you can defer loans while you are in school.

  • KitKat
    Lv 7
    1 decade ago

    the confusion can be cleared up by speaking to either your financial aid rep or your loan company directly.

Still have questions? Get your answers by asking now.