thanks for the advise. One more question am not too on what to do first do I rehab or consolidate. I still want the rehab option. Much Appreciated.

rehab first, that gets the negative mark off your credit report

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You must rehab the loan first. It will take 9-12 months on on time payments to complete depending on the type of loan.

I need information about the $50 monthly payments that I have been making for more than 20 years. Why is my loan in default if I haven't missed any payments?

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I need information about the $50 monthly payments that I have been making for more than 20 years. Why is my loan in default if I haven't missed any payments?

Hard to say without more information.

You can only get into the rehab program if you request it and it is dependant on your balances. You need to be making 1% payments and your balance must be over $1000 after you complete the rehab payments?

i have a defaulted student loan. I tried to work with the barrower but to no evail. I tried to fight the garnishment, but they thought that at 9.94 an hour with a child to raise I should be able to afford the 200 a month to pay them.
I lost now they take my taxes. I have been unemployed for 6 months. I was paying a hundred dollars a week last year to get back and fourth to my job and having my wages garnished.I quit my job to go to a job through a temp agency, the job was a block from my house. Right before I was supposed to start the job, they lost their contract so i lost my job.
I have no income of my own. I get money for my daughter but no public assistance, so we are living on 600 a month and the good graciousness of others. I have been looking for a job to no avail. I need my tax money. I called the lender but they told me there was nothing I could do. I do know if I was married we could file injured spouse. Is there a similar program for the unemployed degenerate?

I had my loans in Rehab. Then I had to have back surgery last and was on disability. I could not longer afford the rehab payment and my lender would reduce the payments so I stopped them. I just tried to rehab them again and according to my lender you can only rehab once. Now they want 2100.00 now and a payment of $525.00 a month. They basically said to bad and that they would probably start a wage ganishment. But they would see if there is something they can do.
I agree that the government should use some of the bail out money to help people with student loans. Even if it is just rewritting the loan so we could start over paying them.

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Consolidate your loans with Direct Loans. Then you can start paying again on a income contingent basis.

I am about to sign on to rehabilitate my student loans. Will this stop them from taking my tax refund for the 2008 tax year, or does this only go into effect after I complete the 9 months of on time payments?

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If you have not made any payments in the past 12 months,dont expect to get your 2008 taxes back. The liens for 2008 went in several months ago.

I do not want to use the collection agency that is currently handling my loan. Is there a way I can go with the lender for rehab?

We paid 9 months on my husband's loan and now that the 9 months have passed they are saying they won't take it out of default because of the economy.

I receive a letter from the DOE stating that rehabilitation is suspended indefinitely. I tried to convince the collection agency to forgive the collections fees, but they won`t budge. Even with the economy as bad as it is I offered to setup a payment plan of $410 a month. If anyone has any suggestions on how they were able to have collection fees removed, I would appreciate the advice.

I was exploring the world of a starving artist for first several years that followed my schooling (defaulting all they way).

I now have (thanks to the school and experience) have the ability to start paying off my student loans. I have been saving money for the past several months as I was trying to figure out what I should do. As I was slow of foot, that decision was made for me. Wage garnishment.

I'm in the process of trying to re-establish myself, I'd like to buy some property/house one day. What would be my best plan of action at this point?

I owe 34K (fees and balance), I talked with ISAC they will do a debt settlement for 29K?

Or

If I try make voluntary payments (I can afford $1-$500) on top of the wage garnish amount ($500) for 11 months I can hope for rehab (I've been told there is no guarantee).

I have 7K of my own, the 22K for the settlement would potentially come from a family member who would needs serious convincing debt settlement would be the best option and that no better options exists.

I still live in Illinois, I went to school in Illinois.

My student loan was in default for 6 years. I felt horrible all the time about it. I got turned down by a car loan place advertised for people with bad credit, they would only deal with me when I proved I was making payments. Anyway now that I am in the rehab program I feel so much better. It is only for 10 months then you consolidate and stretch it out over time. You just need to accept that you have to buckle down and do it there is no way around it unless you want to collect welfare for the rest of your life because they will garnish your wages. Make a plan to work on it then do it. It didn't happen for me over night. it took me two years of working part time now full time with my kids in school. But it will be over in six more months. the loan rehab program really is a good deal.

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Anyway now that I am in the rehab program I feel so much better. It is only for 10 months then you consolidate and stretch it out over time.

you make rehab payment for 9 months then the loan is rehabbed. You apply for consolidation after the rehab has been completed. The two programs are totally different.