Good News: The $40,000 owed on the student loans will not be making a bad mark on the credit report!
Bad News: We are stuck in the delinquent loans program another 12 months.
Good News: We are paying $100 per month instead of $550!
Bad News: It’s actually like $47,000 because we don’t get to refinance at today’s interest rates.
What happened? Our account handler is no longer with the law firm. Apparently, had we done the reconsolidation through WD Ford that he directed us to do we would have had a $47,000 bad debt showing on our credit report (granted, its only for 7 years but that could have impacted getting a new house, van, etc.) Since the December payment of $550 bounced and we didn’t get it paid by Jan 15 we didn’t qualify for the reconsolidation. The bummer is that the December payment could have been adjusted to $100 and we could have been reconsolidated. Ugh!