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innvaderr · Posted: Wed Aug 27, 2008 3:13 pm Subject: Rehab program?

Hello All,
I currently have a student loan from Direct Loans in default. I have been avoiding them because i was in a bad situation, but now im starting to get my feet on the ground again. My balance is somewhere between $2800-$3000 (assuming with interests).

My question is: Do you have any idea how much my rehab payments will be for the first 9-12 months? and how much they will be after that?
As of right now i' am comfortable making a $50 payments but am afraid they will want more and i cannot afford anymore than that.

Thanks everyone!

Posted: Wed Aug 27, 2008 3:50 pm Subject:

You will need to add about 20% on top of that in collection costs which would probably take your balance to around $3500. You should be fine paying $50 per month for the rehab.

innvaderr · Posted: Wed Aug 27, 2008 4:24 pm Subject:

Thanks for the response SOAPLADY!

do you know if after the rehab program is over, will my payments be the same, or will they go up or down?

thanks!

Posted: Thu Aug 28, 2008 7:14 am Subject:

The payments should be right around $50 per month.

innvaderr · Posted: Wed Sep 03, 2008 2:25 pm Subject: Update...

I finally got my payments set up!!
The CA (Premiere Credit of North America, LLC) first said that I needed to pay the balance of $3650 in full because it showed i was in 'refusing to pay' status. I told him i didn't have the money and wanted to enter the rehab program. He said he was not sure i qualified for it, but asked "could you make a $2900 payment today, it will save you 20%?"
i said 'no' i can afford about $50/month right now. Then he went on to say "how much can you come up with today to settle this? you never know, they have been known to settle for crazy amounts!".
I told him i dont have money right now, but i MIGHT be able to BORROW maybe around $400 from someone!?. he said "Let me check"... he came back and said "Guess what, you do qualify for rehab after all and your payments can be $50! what do ya know, thats the minimum we can accept!, BUT we need a $400 down payment and then its $50 there after" he said "the rehab requires a 10%-12% down payment"...

my question to you smart posters is;
Was he lying to me about the down payment? what a coincidence that the down payment just happened to be the amount i said i might be able to come up with that day to settle!

Either way, his manager came on the line and said i can make my first payment/down payment of $100 and $50 there after!

thanks for all the info everyone!

innvaderr · Posted: Wed Sep 03, 2008 2:33 pm Subject:

oh one more question... Did i even need the $100 down payment or would just starting with $50/month of been good enough.
thanks

Posted: Thu Sep 04, 2008 6:06 am Subject:

No...student loans do not settle for 'crazy amounts'. They are guaranteed and have no SOL....so in actuality there is no reason to settle at all. They will get there money

No downpayment is required to enter a rehab program....sure he can ask but he cannot demand. All the Higher Education Act requires in 9 timely payments...you could ask him under with section of the Higher Education Act he is getting his information that a downpayment is required....tell him you wish to look it up. If he continues to give you problems, simply tell you in a quiet voice that you will file a complaint with the student loan ombudsman.....that should shut him up. Collectors and agencies are graded on complaints.

innvaderr · Posted: Thu Sep 04, 2008 2:16 pm Subject:

thanks soaplady... i dont think there is much i can do now since they are deducting the down payment tomorrow and i already signed and faxed the agreement. oh well, it was only $100 which isnt that bad for me right now.

Thanks!

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