1. Understanding Your Loans
Welcome to the Student Loan Blue Print. You have just taken your first step towards escaping student loan hell. With the Quick Start A-Z Guide you’ll be able learn everything you need to know about defaulted federal student loans and step by step process to get rid of your student loan burdens FOR GOOD. Now to start off we need to assess your situation.First you need to find out your situation and what you’re dealing with. In order for the Student Loan Blue Print to work for you, you must obtain the following information.
- What is your loan type?
- How many loans do you currently owe?
- How much do you owe?
- What is the breakdown of your balance?
- Do you have any Judgments on your loans?
- What is your current interest rate?
- Which collection agency is currently holding your loans?
What is your loan type?
While speaking with the customer service representative you’ll need to ask them for your loan(s) reference number. You’ll be able to differentiate the different type(s) of your loans by obtaining your debt reference number. It should startwith the following letters as a prefix:- D =Loan(s) originated or consolidated with Direct Loans (Treat these loans as Direct Loans)
- G =Loan(s) originated with the Guaranteed Student Loan (GSL) Program (Treat loans the same as F loans)
- F =Loan(s) originated with the Federally Insured Student Loan (FISL) Program (Treat loans the same as G Loans)
- N =Loan(s) originated with the Nation Direct/ Defense Student Loan or Perkins Loan Program
- P =Pell Grants
Understanding your loan’s reference number(s)
(D) : Loan Type
(2006) : Year the loans first fell into default
45132154212 : The rest of your loan ID
How many loans do you currently owe?
Make sure to ask the customer service representative how many loans are currently defaulted.If you have more than one loan (which is very likely), there will be a different debt reference number for each of your loans! Make sure you obtain ALL the reference numbers to find out if you have multiple loan types!
How much do you owe?
You’ll be able to obtain this information by asking the customer service representative for your total overall balance due.What is the breakdown of my balance?
Now that you know your total balance and your loan type(s), you’ll now need to obtain the breakdown of your loan balance. There are 2 different scenarios below, go with option pertaining to your situation.- You only have one loan or you owe more than one loan but the loan types are all the same If the situation above (#1) applies to you, you’ll now need to ask the customer service representative for a breakdown of your loan balance. The following information must be obtained in order to get the breakdown of your balance. Ask the customer service the following questions:
- What is my principle?
- How much do I owe in interest?
- How much are my collection fees?
- You have multiple loan types. If the situation above (#2) applies to you, you’ll need to ask the customer service representative for the breakdown of your balance for each type of loan.
Example 1 : If you owe 2 Direct Loans, and 2 Perkins loan (D2006####2154212, D2006####52154213, N2004####9515457 & N2004####9515458) you’ll need to ask the customer service representative the following questions: - What is my principle for all of my Direct Loans?
- How much do I owe in interest for all of my Direct Loans?
- How much are my collection fees for all of my Direct Loans?</>
- What is my principle for all of my Perkins Loans?
- How much do I owe in interest for all of my Perkins Loans?
- How much are my collection fees for all of my Perkins Loans?
What is your current interest rate, which collection agency is currently holding your loan, and do your loans have any Judgments?
Lastly, just simply ask the customer service representative the following questions:- What is my currently interest rate?
- Do any of my loans have Judgments?
- Which collection agency is my loan currently assigned to?
- Don’t forget to obtain the contact number and the mailing address for the collection agency
