Back in august of 2007 I took out a student loan. This student loan was in the amount of 5,000 from Chase Private student loans. Recently i was involved in 2 car wrecks and could not make a payment. Yesterday i received a notice from chase recovery department telling me my payment is due in full. I have 2 other loans out from chase private student loans in the amounts of 5,000 each. Those loans are in default and will be out of default on 10/22/2013 when i make my payment.
What can I do about the one loan that is in the recovery department of chase.
Since these are private student loans they are not subject to one of the many income contingent repayment programs available to federal loans. In this case your best solution is to contact Chase and attempt to workout a suitable repayment plan.
Whenever you find yourself in a situation where you can’t make a payment, on any loan, it is always beneficial to reach out proactively to the creditor instead of waiting for them to move your delinquent account through their system.
Unfortunately credit agreements are absolute and do not make allowances for missing payments. They also describe exactly what will happen if payments are delinquent. Those actions may include suing you to recover the lost funds.
You might want to contact Chase and ask them if you would be eligible for their short-term hardship forbearance program.
According to Chase the program sounds like it is a fit for your situation.
Forbearance allows the student borrower to temporarily postpone his or her payments as a result of a temporary, short-term hardship.
If eligible, hardship forbearance is available for up to a maximum of 12 months over the life of the loan, in increments of one or two months. You can request hardship forbearance if you’re experiencing extenuating circumstances that temporarily prevent you from making payments.
In addition to establishing the presence of a temporary hardship, you must meet certain additional eligibility criteria to qualify for a hardship forbearance, including:
- The loan cannot be 90 or more days past due at the time of the hardship forbearance request.
- Nine regular monthly payments must have been made on the loan.
- Twelve payments must have been made on the loan since the end of any prior hardship forbearance.
- The lifetime maximum of 12 hardship forbearance months cannot have already been exhausted.
The borrower and/or cosigner (if applicable) cannot be in an active bankruptcy status. – Source
Please post your responses and follow-up messages to me on this in the comments section below.