A Federal Government program exists to get current on a defaulted Student Loan without having to make several months of payments at a high rate. You can consolidate into a "Direct Loan" with an income contingent repayment plan even if you are in default and your payments may be as little as $5.00 a month.
KEY BANK - 5501 BROADWAY, LITTLETON
303738-3749
5501 S. Broadway #200
Littleton, CO
WELLS FARGO BANK - BROADWAY, LITTLETON
303861-8811
5601 S. Broadway
Littleton, CO
ACADEMY BANK - UNION
303689-2265
8110 East Union St.
Denver, CO
CITYWIDE BANKS/DTC
303365-4080
8101 E. Belleview Ave.
Denver, CO
COREFIRST BANK & TRUST SYRACUSE / DENVER
303524-1417
4600 S Syracuse St
Denver, CO
COLORADO STATE BANK & TRUST-UNIVERSITY
303318-6082
5910 South University
Greeenwood Village, CO
WASHINGTON MUTUAL - UNIVERSITY, GREENWOOD VILLAGE
720283-1275
5990 S University Blvd #100
Greenwood Village,, CO
BANK OF THE WEST - ENGLEWOOD BROADWAY
303202-5479
4301 S Broadway
Greenwood Village, CO
CHASE BANK - HAMPDEN, ENGLEWOOD
303244-5167
333 W. Hampden Ave
Greenwood Village, CO
COMPASS BANK - SOUTH BROADWAY BRANCH
303761-8300
4600 S. Broadway
Englewood, CO
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Steps
- Learn that the US Department of Education offers a consolidation loan that can be paid back through an Income Contingent Repayment(ICR) plan. Learn some of the pros and cons:
- The wonderful side of the ICR plan is that those who have run into some bad luck and just aren?t making enough to make their normal payments can apply for a consolidation loan EVEN IF they are currently in default status on your Federally guaranteed student loans.
- An ICR is a repayment plan that bases your monthly payment on your yearly income, family size, and loan amount. As your income rises or falls, so do your payments. After 25 years, any remaining balance on the loan will be forgiven, but you may have to pay taxes on the amount forgiven.
- Each year your monthly payment will be based on your family size, annual Adjusted Gross Income (AGI) as reported on your federal tax return, and the total amount of your Direct Loan(s). To participate in the ICR Plan you must authorize the U.S. Internal Revenue Service (IRS) to inform the U.S. Department of Education (Department) of the amount of your income. This information will be used to calculate your repayment amount, which will be adjusted annually to reflect changes in your AGI.
Tips
- Don't believe the private lenders when they tell you you can't get a consolidation. If you don't mention the Income Contingent Repayment Plan they won't offer it as an option.
- Just as a note the Dept of Education is a bit slow so don't expect this overnight.
Warnings
- The BIG danger / risk / problem with an ICR plan consolidation is that in 25 years when the balance of the loan in forgiven it may be considered income to you then. There is some movement to remove this possibility from the law and there are currently ways to soften the blow but it is a considerable issue you need to consider.
Sources and Citations
- http://loanconsolidation.ed.gov/borrower/borrower.shtml - US Department of Education Website
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