So, I just got a call from someone from DCS, although she didn't tell me that, she said she said she was calling about a program that I qualified for to start paying back my student loans. She wanted my income information, which I told her I had child support and that I was unemployed but actively looking for a job. All true, but I did leave out that I was married because my husband is not looking to pay my bills.
Now, she talked so fast and said everything would work great and that my loan would be in good standing within 30-90 days. Which I knew about the 9 month rehab, but I can't guarantee when money will be in my account to use my debit card so I couldn't do that. She didn't ask for a bank account or anything. So 5 minutes in I am sold. I gave her 2 references, my mom and dad and then after doing so she said they would be responsible for my $7000.00 debt if I didn't make the payments. Which I was taken aback by, but before I could ask anything she said she had to put me on hold to talk to her manager, Then she said that her manager said I would qualify for $50.00 payment. And they would waive the $115.00 down payment. So still in shock over references being responsible for my debt I take her name and number because I would be stupid for making any type of payment without seeing paper work. And the whole time she "implied" she was with "Direct Loans".
So I get on the computer to see more about who they are and can only find the BOE information, I googled the return number and found this site.
I believe in full disclosure and I have been asking DCS for a $50.00 payment for a year now. I have never denied that I am responsible for this loan.
But, now I am mad because I see no where in all my searches where a loan can be rehabbed in 30-90 days or anything. Is this true?
Is it also true that they can hold the references that I gave her responsible for my debt?
I have always spoken to the people that have called me about my debt and it is the same conversation all the time that I can pay $50.00 and when I get a job they can garnish it or I can increase payments, but I can't do anything over that.
I don't understand why she didn't say she was from DCS?

Just a minute. Let's get Soaplady over here to pick this apart.

Hang on...

__________________
Wulfisms: my blog

The four 'no's of dealing with collectors:
No validation? No payment. No way! No kidding!!

Tellin' you all the zomby troof
Here I'm is, the zomby woof
[Frank Zappa, 1988 - R.I.P.]

They cannot even say the represent Direct Loans cause they are a DOE vendor, not a vendor for Direct Loans.

No, your parents are not responsible as references. Nor can you rehab or get out of default in 60-90 days unless you consolidate.

I would suggest calling the student loan ombudsman.

I just got a big packet in the mail of sign here and sign there. Aside from it being a bit confusing, (I can sift through most of it) I have figured out it is for an income contingent consolidation loan through Direct Loans. Now, there is no payment amount on here. It just tells me to check here and sign here. It doesn't have my income anywhere on here. It has the approximate amount of my debt listed.
I am confused because while I finally got the answer I was looking for with a $50.00 a month payment, if I accept this then what happens? How do I know what my payments would be?. Since the person on the phone was deceiving about everything I don't want to call them and ask them questions because I don't trust them.
I can't just sign a piece of paper without knowing what I am committing myself to. I though rehabbing was the best way to go first.
So if I could be directed to the link about rehab versus consolidation, and how to find an ombudsman I would really appreciate it. I have read through the site but I am not seeing anything that tells me what would be best for me.
I know she (from DCS) will probably be calling me to see if I got the packet or not. But after her stunt that my references will be on the line for my loan I really don't want to speak to the "soft spoken older lady". Even knowing now that it isn't true I am still a bit livid.

I would also like to add that while I know that build payments are not considered to be part of any rehab or anything, each year my husband gives me some money from his tax return to put towards the loan. Sometime, (in the not so near future from what I hear) around 8-10 weeks hopefully the government should get $4000 from our 1st time buyer house credit which will put a dent in the loan of $8000.
So should I consider waiting until that payment is received by the CA before entering into anything?
Thanks!

No application for Direct Loans lists the payment, especially the income contingent type. Your payment will not be finalized until after they have verified your income thru the IRS. You can get an estimate of your payment on the Direct Loan site somewhere...I know I have seen it. You can also complete your application completely online which I recommmend over the paper forms.

I would not wait....tax offsets are being submitted to the IRS over the next 30 days...if you are in default, any government payment including tax refunds are subject to seizure if your SS# is attached to it.

But a consolidation isn't going to take me off of the tax offset list, because I won't have time to make enough payments.
How do I apply online with the CA being DCS?

Anyone can apply online for a Direct Loan consolidation....it really doesnt matter who the CA is. Consolidations do not require any payments be made...well technically they say you have to make 3 but they will go thru without any. Now a consolidation will do nothing for your credit but you will be out of default with 60 days and then you are removed from the tax offset list.

Yes , I reconsilidated my loan paid my 50.00 and the lady let me know that my income would not be offset and when I did my taxes it was held im a single mom with 3 kids I think this is not fair.

Need more info. You made one payment when? Did you actually do the consolidation loan paperwork and was it funded?