California Student Aid question????

Question

I finished college in Jan. 2003. Upon graduation, I was able to consolidate my loans from my previous schooling with my new loans. I then defered the loans. This is going to sound ridiculous, but it's like the loans vanished. (Aside from my credit report, of course). I had the same address for 3 years following graduation. I looked into contacting them, but when I would enter my information, it would say no such person found. I am embarrassed to admit it, but I then, after trying to figure it out for about 3 months, gave up. I still can't believe I never recieved a payment booklet or a statement or anything. I finally just recieved a letter from them (almost 4 yrs later) in the mail informing me that they will offset my tax refund (which is fine), but I would like to set up payments and take care of this. If I call, are the payments going to be really high? (I owe 45,736). I really want to pay it, but we live on one income and could not afford a $400 payment. Any advice?

I'd like to point out that I am not proud of myself for letting this get so out of hand. I really do just want to fix the mistake I made. How embarrassing.

Answer 1

You have to call the office where you got your student loan tell them your current financial situation and you are willing to pay them on a term that is feasible to you. As long as you express your concern of wanting to pay, they will work with you.

If you will not settle this as soon as possible, later on it may damage your credit report, they will forward this case to a credit collection company which you don't want to happen.
Much worst, they may also garnish it in your salary and this is really bad for your credibility as an employee. Company doesn't want to hire people who can't take responsibility. And the worst of all, it will stay in your credit history for the rest of your life.

It means, you will have a hard time getting another loan for anything, like mortgage.

Look at the big picture.