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Hi everyone,

My sister is in a tough situation and I"m trying to help her figure it out and am having trouble making sense of it.

She has 2 Stafford unsubsidized loans at mygreatlakes.org that she hasn't started to have to pay yet. She is currently in a Master's program in Copenhagen, Denmark so she's had no USA income for the past year and change.

Now the loan company has come calling for her to start paying. She is not allowed to work more than 15 hours a week by Danish law until she completes her program so she doesn't have the means to make the minimum payments as they are right now, which is in the 350 dollar a month range at 6.8% interest.

I'm trying to figure out a way for her to consolidate her loans into one loan at a lower interest rate but I'm thinking the fact that she has no American income on paper will hurt her chances.

Does anyone have any idea how she could go about consolidating the loans either within mygreatlakes.org or elsewhere (private loan) or at the Federal level? She's lost, I'm lost, we're trying to find a solution.

She tried contacting them about not paying until she's finished studying, which the normal scenario would be, but they turned her down because they don't recognize her University (which is insane because the University of Copenhagen is considered one of the top 50-60 Universities in the world).

Does anybody have any advice on what she could do? I'd really appreciate it. Thank you.
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Now the loan company has come calling for her to start paying. She is not allowed to work more than 15 hours a week by Danish law until she completes her program so she doesn't have the means to make the minimum payments as they are right now, which is in the 350 dollar a month range at 6.8% interest.

I'm trying to figure out a way for her to consolidate her loans into one loan at a lower interest rate but I'm thinking the fact that she has no American income on paper will hurt her chances.


Consolidating her loans won't get her a lower student loan rate - the 6.8% rate will just transition to the consolidated loan, if all of her loans are at that rate.

And without a job or income, she's not going to qualify for any type of loan other than a student loan.

She has 2 Stafford unsubsidized loans at mygreatlakes.org that she hasn't started to have to pay yet. She is currently in a Master's program in Copenhagen, Denmark so she's had no USA income for the past year and change.
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She tried contacting them about not paying until she's finished studying, which the normal scenario would be, but they turned her down because they don't recognize her University (which is insane because the University of Copenhagen is considered one of the top 50-60 Universities in the world).


She might want to try a couple of different things:

- Since she has no income, she could ask her servicer to put her on a repayment plan based on her income.

- She could escalate to the Dept of Education https://www.myeddebt.com/borrower/ about why she can't get a deferment. According to the University of Copenhagen's website http://studies.ku.dk/masters/admission-and-application/usloa... their Master's programs are eligible for the US Direct Loan program, so I would think that it would be a recognized as an 'eligible postsecondary school' which would allow her to put the loans into deferment. Interest will still continue to accrue, because they are unsubsidized loans.

- She could ask for a forbearance if she can't get a deferment.

AJ
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She may also want to get in touch the the ombudsman if AJ's suggestions don't work:
http://studentaid.ed.gov/repay-loans/disputes/prepare
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