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View Full Version : Question about army (LRP) fed student loan repayment



BMR25
05-21-2009, 04:31 PM
Ok so heres my situation:
I have 3 federal sudent loans

Perkins=4,000
Sallie Mae= 15,000
Direct loans= 32,000

I have all req for the 65,000 repayoff plan (MOS, Asvab score, new enlist, active ect...)

But heres my hang up.
The direct loan is in defult but just a few months and it my understanding they wont pay it until its not in default

So i want to get it out of default asap. I called the collectors and they said i could do a Loan Rehabilitation. This is basically making 9 payments of 230 (accroding to my load amount or so they are pushing) per month and it will be out of default. But obviously i dont have 9 months. My other idea is this. If i make 3 monthly agreed payments i can get a "Federal Student Loan Consolidation" which will mark the defaulted loan as PAID but the defualt will stay on my credit record for 7years. I'm not concerned with the credit being bad but rather if in this example the military will pay my direct loan off in 3 months instead of waiting 9.


It seems to make sense but with that word defualt in there they still might say no even though its nonexistant now.

dibblejr
05-22-2009, 08:52 AM
The Default word on your Credit Report will have no bearing on the Student Loan Repayment Plan. As long as it says "Paid" on the note itself. You have to take the "Notes" to the MEPS not a credit report.

And NO the military will not pay off your loan early, it will be on the terms of the law.