This is more of a story than a question. I'm wondering if others may have had similar issues.

I finished rehab with 9 payments totaling $4,108.00 and CO sent in an app/prom note for a consolidation with Direct Loans (ED). Prior to this I called Direct Loans to inquire about the process. I was told I would have 10 days to review the paperwork and then accept the agreement. I waited.

last week I got a "Congratulations, your loan is out of default and your consolidation has been processed" letter from ED. HUH? It's done, I hadnt received any paperwork or notice....

I logged into the https://www.dl.ed.gov/borrower/ site to see if by chance there was info there - there is info there. (you can use the login that you use for the NSLDS site)

The consolidation amount is MORE than what the CO/ED have shown on their last monthly statements - dated only 1 day before the consolidation. AND, the interest is higher than the original loan note!

Of course I called Direct Loans and was told that the consolidation was "fast-tracked" and therefore I had NO RIGHT to look over the paperwork prior to it going through. It just went through. HUH???!!! No right to see the paperwork and dispute any possible errors?

So be mindful of a DL consolidation when you have been rehabbed!

I am now going to demand to see how the 9 payments I made were applied, how/why the interest rate was calculated wrong and how/why the consolidation amount is HIGHER than what I owed. I habe 3 names/departments to call and will write letters and cc. my Senator and Rep. as well!

Wish me luck :-)

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Did the actual rehab go thru first?

Keep in mind that if your consolidation has just funded, numbers will not be 100% accurate. When you do a consolidation application and the lender certifies it, it is done as a snapshot of that date or sometimes extended out 60 days. They are not taking into account any payment you are making between the certification date and the funding date. If takes about 60 days for the numbers to be adjusted.

As for your interest rate, your interest rate will be set as a weighted average of your current loans, rounded up to the nearest quarter %

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