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Jane50
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Joined: 11/June/2015
Points: 18
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Posted: 03/July/2016 at 6:09am |
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If I was you, Royal, and if I really wanted to pay the federal part, and my conscience is bugging me about it, I would take all the money I would want to give them, put it in a high interest savings account, earmark it for the loan, and just leave it, and don't touch it. Add to it like you are paying off the debt, but realize, too, that these buggers can't be faced. And they are quiet right now, not bugging you, and suppose someday they will, you will have it to give it to them. If they don't ever come after you, you will have a substantial something to leave for your family.
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SolveStudentDebt
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Joined: 05/November/2003
Location: Canada
Points: 5996
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Posted: 03/July/2016 at 3:46pm |
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Paying interest only once it is negotiated will not put you in default. Make sure though you have paper trail of it somehow in case someone at the service center screws it up on you.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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Jane50
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Posted: 04/July/2016 at 3:23am |
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Thanks John. I was reading that it is only ok to do that for 1 year maximum, so I will have to eventually make full payments at some time. So a year is good though, its not bad, I'm grateful. Surely, I will have it figured out by then.
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SolveStudentDebt
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Joined: 05/November/2003
Location: Canada
Points: 5996
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Posted: 06/July/2016 at 11:19am |
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You can negotiate it longer if you have a case for it.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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Jane50
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Posted: 06/July/2016 at 2:39pm |
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Yeah, I'm having to go to credit counselling service in the city close to here. They are free service. They have close ties to the mental health dept. and to the financial world, and it was recommended by my therapist. I have lifelong crippling anxiety. So I'm glad to know, too, that maybe I can negotiate a longer term. Again, I thank you Johnny.
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SolveStudentDebt
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Joined: 05/November/2003
Location: Canada
Points: 5996
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Posted: 08/July/2016 at 4:46am |
They aren't free by any stretch, but it is the commission they earn from the creditors that pays them. They are paid a percentage that you pay, as with any collection agency or debt repayment organization. It is good to know this stuff. Basically, they are the private companies that administer a cloned likeness of the old provincial debt repayment scheme called "Orderly Payment of Debts". It was a bankruptcy program until it was no longer used, and then provinces were realizing that a lot of people were stuck in this repayment program for 20 years or more, never to get out. There is no such thing as a non-profit business. 
Good luck with this - and keep us posted on how things work out with your student loan matters!
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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