If ECMC holds your loan s , follow the links below for more information if you are:. I want to go back to school, but my loan s is in default.
Can I get Title VI federal financial aid? Once you have resolved your default status with your loan holder s , your school may request additional documentation from your loan holder s commonly referred to as a Title IV eligibility letter or clearance letter. Will my defaulted federal student loan s be reported? Loan holders are required to report federal student loan defaults to the national consumer reporting agencies.
A default on your credit history may remain for up to seven years. Can I get federal tax credit for paying tuition or interest on my federal student loan s? What is a credit bureau? A credit bureau is a national consumer reporting agency.
It is any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses and means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.
What is a credit report? A credit bureau report is a consumer report under the Fair Credit Reporting Act. It is any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer's eligibility for:.
I was turned down for a loan because of student loan default. How can I fix this? You need to contact your loan holder s to determine if there are options to resolve the default.
The status of other items on your consumer report may have contributed to the decision. Obtain a free copy of your consumer report at www. How do I correct mistakes on my consumer report? You can dispute any entry on a consumer report by filing a dispute with the national consumer reporting agencies.
You may also dispute the item directly through the company that provided the information to the national consumer reporting agencies. What happens to my student loan s if I file for bankruptcy? While in bankruptcy, you are protected from collection activities on most your of your debts, including student loans.
During the bankruptcy process your loans will continue to accrue interest, increasing your loan balance if no payments are made. Remember, student loans are not dischargeable included in your general bankruptcy discharge , absent a finding of undue hardship. Congress intended that discharge for undue hardship be reserved for individuals facing more than the financial hardship that accompanies all bankruptcies. So a separate adversary proceeding within a bankruptcy is required for you to prove to the bankruptcy court that your situation meets the undue hardship standard.
Accordingly, unless a bankruptcy judge grants you an undue hardship discharge of your student loan s , you will still have to pay back your student loan s after bankruptcy. What does dischargeable mean? When you file for bankruptcy, certain debts, called "dischargeable" debts, are forgiven when you obtain your bankruptcy discharge order.
A discharge order permanently prevents creditors people you owe money to from taking any action to collect on such discharged debts. Remember, student loans are not dischargeable debts absent proving undue hardship in an adversary proceeding.
I was told my student loan s is not dischargeable debt, what does that mean? A nondischargeable debt is a debt that is not forgiven as part of your bankruptcy. So you are required to repay it when the bankruptcy is complete. Examples of debts that may be nondischargeable include taxes, student loans and child support. If the bankruptcy court does not determine your student loan s is dischargeable, you will have to repay it after bankruptcy. Is there anything I can do to get my student loan s to be a dischargeable debt?
You can file a separate "adversary proceeding" with the bankruptcy court. The purpose of the adversary proceeding is to prove "undue hardship. How do I prove undue hardship on my student loan s? To prove undue hardship, you must file a separate adversary proceeding with the bankruptcy court explaining your situation and why repayment of your student loan s would be an undue hardship.
Please consult with a bankruptcy attorney to discuss your options. However, if you wish ECMC to discuss your private information to someone other than you or your attorney, we will need you to complete and sign an Authorization giving your consent. Send the form directly to ECMC. Mail the form to:. Why should I make payments on my student loan s during bankruptcy if I don't have to? Interest on a student loan s continues to accrue on your loan balance during bankruptcy.
Please consult with your bankruptcy attorney to discuss your options. If my tax refund was seized, but I filed bankruptcy, can I get my refund back? If you defaulted on your student loan s because you failed to make payments over a day period, your state and federal tax refunds can be withheld referred to as an offset to pay back your student loan s. If you filed for bankruptcy prior to the offset, you may be able to get the money returned to you. What is Chapter 7 bankruptcy?
In Chapter 7 bankruptcy, your nonexempt assets may be liquidated sold , to pay your creditors. Unsecured debt, like credit card debt, is usually discharged in the bankruptcy. Remember, student loans are not automatically discharged under your general bankruptcy discharge order. So, unless you file an adversary proceeding in which the bankruptcy court concludes you met the undue hardship standard, your student loan s will remain a debt you must repay following bankruptcy.
What is Chapter 13 bankruptcy? A Chapter 13 bankruptcy does not liquidate your assets, but it does require you to repay all or a portion of your debts in installments specified by a court-approved bankruptcy plan.
If you successfully complete your Chapter 13 bankruptcy plan, the court discharges most or all of your remaining unsecured debt.
Remember, like a Chapter 7, your student loan s is not automatically discharged under your Chapter 13 general bankruptcy discharge order. What is a Chapter 13 bankruptcy plan? A Chapter 13 bankruptcy plan is a reorganization plan detailing how you will pay some or all of your creditors. A typical Chapter 13 plan lasts three or five years, during which you make monthly payments to a court-appointed representatives, called a trustee, under a court-approved plan of reorganization.
That trustee distributes plan payments to your creditors as scheduled in your Chapter 13 bankruptcy plan. Fortunately, you have options. Credit Glory has successfully disputed collections from Ecmc Collections and companies like them for thousands of clients nation-wide. No, not always. If you work with a professional like Credit Glory to challenge their debt, ensuring accuracy, timeliness, and validity of their reporting, you may never have to deal with them ever again.
Call to learn how we can help you avoid lawsuits and being sued altogether, while fixing your credit. This means working with a professional like Credit Glory to challenge your negative accounts has a good chance to get them deleted, improving your score and allowing you to qualify for the home, car, and credit cards you need.
Credit Glory specializes in disputing Ecmc Collections and companies like them, and has had success for thousands of clients nation-wide.
We can help you, too! Before you log-in and make a payment, you should verify that their information is accurate. Are you trying to contact ECMC to dispute inaccurate info?
Partner with a reputable company like Credit Glory for help disputing and removing inaccurate items boosting your score. ECMC Collections offers approval with a credit score from In some cases, we recommend speaking with a Credit Repair professional to analyze your credit report. It's so much less stress, hassle, and time to let professionals identify the reasons for your score drop.
As debt collectors, they also have the power to garnish student debtors' wages and offset their tax refund. Is ECMC a federal student loan? ECMC handles federal student loans. It also provides support services to the federal government for student loan accounts in default or bankruptcy. ECMC and Navient are two different entities. ECMC is a nonprofit corporation that guarantees federal student loan obligations.
Navient Solutions is a student loan servicer for both federal student loans. It is also a holder of private student loans. If you want to go over your options, schedule a free minute phone call with me. I've got years of experience helping people like you with their student loans. Let's talk. I can help you find a way to get out of default while saving the most money and preserving your eligibility for loan forgiveness. I'm a student loan lawyer that helps people like you with their federal and private student loans wherever they live.
Stanley tate Student Loan Lawyer. What is Educational Credit Management Corporation? If ECMC is assigned your defaulted student loans, you can contact the company about the following repayment options: Settlement : is the only option to save collection fees and reduce some of the accrued interest. Loan Consolidation : allows you to get out of default fast.
You do not need good credit to qualify. Your credit score won't be checked in the application process. Instead, you're eligible to get a Direct Consolidation Loan if you're not under an active administrative wage garnishment and you have at least two loans to include in the application. Loan Rehabilitation : gets you out of default, qualifies you for new financial aid, and allows you to clear CAIVRS after making 9 payments in 10 months.
This program also stops wage garnishment after you make your fifth payment. Voluntary Payments: does not get you out of default. Choose this option only if you're not eligible for consolidation or rehabilitation. Gather documents: before you call, get a copy of your two most recent pay stubs and most recent federal tax return. You'll likely need that financial information if you establish a payment agreement.
Speak with a representative: ask for your account number, how many loans you have in default, and what's your total balance. Learn your options: ask the representative what your options are to stop the wage garnishment. Before the AWG starts, you may be able to negotiate a settlement, apply for loan consolidation, or enter into the loan rehabilitation program. After the garnishment process starts, your options are limited to settlement and loan rehabilitation.
Submit required documentation: if you chose loan consolidation, submit the consolidation paperwork to your loan servicer. If you chose the loan rehabilitation program, you'd need to submit and do three things: a the Loan Rehabilitation Income and Expense Form and proof of income; b schedule 9 monthly payments; and c sign and return the Loan Rehabilitation Agreement Letter.
Confirm receipt: after you submit documents and make any necessary payments, call ECMC. Ask the representative if the company's received the documents, payment and if you've completed all the required steps.
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