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Defaulted Loan Options

Contact College Access Network at 303-305-3333 or 800-333-2858 to discuss payment arrangements. You may also e-mail us at [email protected] .

Program Advantages Completion Criteria/Time Your Credit Report
Pay in full within 60 days of default No collection charges added to payoff amount Payment must be made within 60 days of default No adverse report
Payment in full after 60 days of default Elimination of debt Contact College Access Network for payoff or your Outside Collection Agency for balance information Default paid in full $0 balance
Settlement in full after 60 days of default Potential elimination of debt Contact College Access Network or your Outside Collection Agency for the criteria necessary to qualify. Generally, you must be able to document exceptional circumstances to qualify. Default paid in full $0 balance
Monthly Payment Plan-Standard Payment Stops collection efforts

Sets you up for rehabilitation (See below)
Contact College Access Network or your Outside Collection Agency for a Payment Schedule. Payment arrangements must be acceptable to College Access Network . Default in Repayment
Sub-standard payment Stops collection efforts temporarily, so you can get back on your feet. You must re-qualify on a periodic basis. May qualify you for rehabilitation Contact College Access Network or your Outside Collection Agency for a Payment Schedule and required forms. Specific criteria must be met prior to qualification. Default in Repayment
Rehabilitation Defaulted loans changed to current loan(s) in good standing

Deferments and Forbearances available

Collection charges are eliminated after the rehabilitation is completed. A one-time fee is charged for this process.

Title IV eligibility is reinstated
9 Consecutive on-time payments to qualify and continued on-time payments until the process is completed Default information reported by College Access Network is removed
Reinstatement Eligible for New Title IV Student Loans 6 Consecutive on-time payments to qualify and continued on-time payments until school reinstates eligibility Default in repayment with loan balance
Consolidation All loans collapsed into one new loan

Deferments and Forbearances available

Collection charges are eliminated (however a fee is charged for this process)
Generally, 3 consecutive on-time payments to qualify and continued on-time payments until process is completed (About 90 Days). You may qualify for a "no payment" consolidation; contact the College Access Network or your Outside Collection Agency for more details. Default paid In full $0 balance

Pay in full within 60 days of default

This is the quickest and easiest way to get out of default.

College Access Network has an initial 60-day period after the default lain is paid before reporting your default to the major credit bureaus or assessing a collection fee on your unpaid principal and interest balance.

  • If you are able to pay the balance-in-full within this 60-day period, you will avoid both these actions.


  • Call College Access Network within this 60-day period to obtain a pay-off balance.


  • Once your loan is brought to a zero balance, College Access Network will wait approximately 30 days to clear the account before issuing a letter stating the account has been paid, unless the payment is made via certified funds (i.e. bank checks, money orders, etc.)


  • Current collection fee percentage is available by contacting College Access Network at 303-305-3333 or 800-333-2858.

If you are unable to pay the balance-in-full within the 60-day period:

  • Any payment(s) made during this time will directly reduce the principal and interest balance. This saves you money by reducing the collection costs that are assessed on your debt 60 days after the date of default.


  • Arrange a payment plan to reduce your debt.


  • You can negotiate a settlement-in-full with College Access Network at a future date. Specific requirements must be met prior to acceptance of a settlement-in-full. In all cases the negotiated amount must be acceptable to the College Access Network .


Contact College Access Network at 303-305-3333 or 800-333-2858 to discuss payment arrangements. You may also e-mail us at [email protected] .

Payment-in-full after 60 days of default

A payment-in-full is a clean payoff of the debt and is reported to the major credit bureaus as "Default paid by borrower." Call College Access Network at 303-305-3333 or 800-333-2858 to obtain your payoff balance.

Any time your loan is brought to a zero balance, College Access Network generally allows approximately 30 days for the payment to clear the account. If the payment is made with certified funds (generally funds with a bank guaranty that the payment will be honored - like a money order or a bank check), then the letter may be issued earlier, at the discretion of College Access Network . At this time a letter will be issued to the borrower stating the account has been paid. This letter will clearly state that the default was cleared by payment-in-full. All letters are issued to the last verified address. It is up to you to keep College Access Network updated with any address changes.

Contact College Access Network at 303-305-3333 or 800-333-2858 to discuss payment arrangements. You may also e-mail us at [email protected] .

Settlement-in-full after 60 days of default

Under certain circumstances, College Access Network is willing to consider an offer from the borrower for settlement-in-full. A settlement means College Access Network may accept a payment of less than the balance owed, then write-off a portion of the balance due. In all cases the negotiated amount must be acceptable to the College Access Network .

A settlement offer must be made in writing.

  • A letter stating the offer, the reason why the offer is being made at this particular time, and reasons why you will not be able to pay off the debt over time.


  • A completed financial statement must be attached to the letter. The financial statement is required so that a determination can be made that the settlement amount is acceptable and justified.


  • When you and College Access Network reach an agreement you must be prepared to send the payment immediately, because the agreement is time-sensitive.

When your loan has a zero balance, College Access Network allows approximately 30 days for the payment to clear your account before issuing a letter to the borrower that the account has been paid. The letter will clearly state the debt was cleared by settlement-in-full. All letters are issued to the last verified address. It is your responsibility to contact College Access Network with updated address information.

Contact College Access Network at 303-305-3333 or 800-333-2858 to discuss payment arrangements. You may also e-mail us at [email protected] .

Monthly payment plan - Standard payment

As the guarantor of student loan debt, College Access Network recognizes that paying your loan in full is not always a viable option for student loan borrowers. As a courtesy, College Access Network provides the option of monthly payment arrangement. However, it is important to note that the balance is always due and payable in full.

When you default, an additional collection fee is assessed on the unpaid principal and interest after an initial grace period of approximately 60 days. This is not interest. It is a penalty imposed on your unpaid principal and interest for defaulting or failing to comply with the repayment agreement of the promissory note.

The monthly payment for your defaulted student loan is based on a 10-year amortization schedule. Making timely, monthly payments of the scheduled amount should insure that your defaulted student loan would be paid within the 10-year time limit.

  • The larger the balance due, the higher your monthly payment.


  • The interest accrues at the interest rate you agreed to when you applied for your student loan and signed the original promissory note.


  • As with any loan, the longer you take to repay the principal, the higher your interest cost.


  • Monthly payments are designed to avoid accrual of interest or negative amortization and growth of your student loan debt.


  • Each monthly payment is calculated to pay the collection fee first, and then accrued interest. A portion of your payment is applied to your principal after your collection fee and accrued interest due have been satisfied.

Something to think about:

Increasing your monthly payment reduces the overall costs of interest and collection fees you pay over time.

Contact College Access Network at 303-305-3333 or 800-333-2858 to discuss payment arrangements. You may also e-mail us at [email protected] .

Sub-standard payment

It is always better to send a small payment rather than no payment at all. The disadvantage to making sub-standard payments is that your loan payment will not reduce the total accrued interest or cover any outstanding principal balance (negative amortization). You must apply and College Access Network must approve a sub-standard payment. It is important to note that the balance is always due and payable in full.

To apply for approval of a sub-standard payment, you must complete a financial disclosure statement and attach copies of the most recent month's income and expenses. This option should only be used if your financial situation is short-term and you anticipate a future ability to pay monthly payments or more per month.

This will be reviewed according to federal guidelines. If approved, your billing amount will adjust to the approved payment valid for 12 months. After the 12 months, a new financial disclosure must be submitted to continue the reduced payments. The new information will be used to determine a new sub-standard payment amount.

Examples of Possible Temporary Financial Setback Situations

  • You are temporarily out of work due to illness, injury, or other life event.


  • You incurred other financial obligation(s) that affect your ability to pay on a temporary basis.


  • You are on fixed income.


  • Your income is currently low, but you anticipate a change in your ability to pay within a reasonable time, i.e. a promotion or raise in pay, an inheritance, etc.

Contact College Access Network at 303-305-3333or 800-333-2858 to discuss payment arrangements and obtain the forms you will need to complete. You may also e-mail us at [email protected] .

Rehabilitation

One of the best ways to get out of default on your student loan debt is Rehabilitation. The major benefit of Rehabilitation is that College Access Network will delete all default comments made to all major credit bureaus approximately 60 days after your Rehabilitation is complete. Your new loan(s) will be eligible for available deferments and lender approved forbearances.

To qualify for this option, nine (9) voluntary, on-time, monthly payments within a 10 month period are required for consideration in this program. Lump sum or balloon payments do not count toward rehabilitation. Qualifying payments must be a monthly payment based on a 10-year payback schedule or a pre-approved sub-standard payment. The nine (9) monthly payments are critical to establish a reliable payment history. It is important to note that nine (9) payments will qualify for rehabilitation, but consecutive monthly payments must continue to be made until the rehabilitation process is complete, which can take 45 to 60 days after the 9th payment to complete.

Once the Rehabilitation Process is complete:

  • The accrued, unpaid collection fee is dropped from your loan balance.


  • A one-time, federally mandated processing fee is assessed on the unpaid principal and interest. This amount is included in beginning principal of the new loan(s).

Contact College Access Network at 303-305-3333 or 800-333-2858 to discuss payment arrangements. You may also e-mail us at [email protected] .

Reinstatement

This program is available to allow borrowers with defaulted student loans, to obtain new Title IV funding with the purpose of continuing their education. It can only be done once. If the borrower defaults again, or fails to make payments after qualification this is not a payment option.

To qualify for this option, six voluntary, on-time, and consecutive monthly payments are required for consideration in this program. Lump sum or balloon payments do not count toward reinstatement. Qualifying payments must be a monthly payment based on a 10-year payback schedule. Sub-standard payments are not acceptable.

Reinstatement does not alter the terms of the original promissory note(s).

  • The loan is classified as in default.


  • Collection charges will continue to accrue on your account.


  • You must continue to make your monthly payment.


  • You will not qualify for deferments on your loan.

Contact College Access Network at 303-305-3333 to discuss payment arrangements. You may also e-mail us at [email protected] .

Consolidation

Consolidating your student loans enables a borrower with several loans to obtain one loan with one repayment schedule and one interest rate.

Consolidating your student loans:

  • Help eliminate the confusion that may exist when your student loans have multiple lenders, servicing agencies, and/or guaranty agencies, etc.


  • You may be required to make three (3) on-time monthly payments to qualify for consolidation. Under certain circumstances you may qualify for a "no payment" consolidation, contact College Access Network or your Outside Collection Agency for more details.


  • Is offered by College Access Network as an option to get of default. You can combine individual loans, in various stages of regular repayment or default, into one easy-to-manage payment.


  • Re-establishes some of the deferment and forbearance options that were lost when your student loans defaulted.


  • Funding generally occurs within 60 days of submitting a Consolidation Application. Until funding is completed, you should continue to make payments on your account.


  • Eliminates all accrued, unpaid collection fees. There is a one-time fee for consolidation. Call College Access Network for more information.

After the funding is completed, your previous account(s) will show a zero balance and College Access Network will send a report to the major credit bureaus of, "Default paid by borrower."

Many repayment options are available with consolidation. The repayment period can be extended beyond the standard 10-year repayment schedule; up to 30 years depending on the amount borrowed. To start the consolidation process, contact College Access Network at 303-305-3333 or 800-333-2858 to discuss payment arrangements. You may also e-mail us at [email protected] .

Cancellation of your defaulted loans.!-- InstanceEndEditable -->

Within the Code of Federal Regulations there are several provisions that allow student loan borrowers with certain circumstances to have their defaulted student loans discharged. Total and Permanent Disability and School Closure are just a few reasons that your loans may be discharged.

Contact College Access Network at 303-305-3333 for additional information. You may also e-mail us at [email protected] .

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