Soaplady?

No...they are not tacking $15K for the service. Your loan was subject to 18-25% in collection fees 60 days post default. Standard collection costs, federally mandated.


Technically there is nothing written in federal law stating that you make 4 pays and get out of garnishment. If your default is a federal direct loan and the DOE is holding it, you can make 9 payments over and above the garnishemtn to rehab and then have all the collection fees waived. Otherwize if you consolidate before rehabbing, the collection fees will be added to your loan.

Thank you for your time and information!

BTW - lets have a little honesty to clear the air - after all knowledge is power & the student lenders want to keep you in the dark with phony advice. They want you to think they are perfect & never make mistakes & you the borrwoer never have to doubt whatever bill they send you. WRONG! No one or company is error free & only a criminal would try to make you assume that. Soap lady works for these guys, so she won't tell you the entire truth. Also Sallie Mae and several other lenders are currently being sued by the Dept. of Education for getting overpaid/getting money they weren't supposed to get. Watch carefully, the IRS is next. I'll bet Soap Lady never mentioned that all these Student Lender scammers have to give the IRS a full report of what they take from you via 1098E - so I will tell you - to check your 1098s AND check with the IRS that they have the same thing you got, if they don't, also contact your State Dept of Education AND your State Atty General. This is not a problem for a legitimate loan with legitimate interest, however for those that may be in error or are completely bogus, the DOE has finally caught up to their scam w/ the help of Uncle Sam. The good guys win in the end! SoapLady - how do you sleep at night? - Why not just change your name to "Tokyo Rose" - the Japanese propagandist that tempted US WWII soldiers to just give up - that they were losers, that they were wasting their time, that the US was wrong, etc.? - If you are going to give HELP then be helpful - don't prey on folks with half truths & keeping them in the dark from things that would really help them. Assuming that the lender never made mistakes is criminal. - At best it is a fantasy that any company never makes mistakes any more than any human is error-free. `Special place in the after-life for you SOAPLADY ;-0 You asked me why I bothered? - Because I don't want others to be hurt by these crooks - especially in these tough times. A `Snoop's got to do what a Snoops got to do!

God I wish Sallie Mae was in Naples Florida....I would be working for them.

Actually I have never lived in any state they had an office in ....troll.

I borrowed the money, I defaulted on the loans, I am aware of the accruing interest, and I accept the responsibility for paying it back. However, I do not wish to pay a collection agency (CA) $15K for entering me into a federal consolidaiton program that I am able to enter into myself.

SoapLady, Can you give advice on how to negotiate making monthly payments (do they not have to go through the CA?), and not having turn in a Ford application to the CA (with its obligatory $15K "handler's fee!")?

Thank you!

If I tell them I wish to "Rehab" the loan, do they have to cooperate? What language do I have to use?

You do not have the opinion of not paying the CA..even if you sent the payment directly to the guarantor,the CA gets their commision. CA's are hired under contract for a specific period of time. If they dont collect, the guarantor recalls the loan immediately places it with another CA.

If you read what I wrote above, the CA doesnt charge you a handlers fee. Again, this is federally mandated collection charge that is charged by your guarantor 60 days post default.

You can do your Ford application online instead of sending it into the CA. However since you are being garnished, I would suggest you cooperate with their request. While in garnishment, you are not eligible for consolidation so you do need to work with the CA.

Rehab.With your balance you would be looking for a standard payment of $760 per month based on the 1% formulation in addition to your garnishment. However, you can ask for "reasonable and affordable payments". You will not get a $50 payment....that may be affordable but it is not reasonable based on your balance.

so I know people on welfare who pay 5 bucks a month to rehab their loans - if someone only earns 400 a month then why can't they do the same? Reasonable is what people can afford - if someone hasn't got the money - and in this economy many don't - then why won't the government allow people to do a low payment for 9 months - then get out of default and they can apply for Income sensitive plans that say they only have to pay 0? Hounding and pounding people till they commit suicide isn't going to get the government any money. And I know people who are killing themselves because the student loan people will not work with them. If someone does have the money - then sure they should pay it - but when they ask for 10 times what you earn or 20 times what you earn - that serves no purpose.

They are not rehabbing at $5 per month....that may be affordable but it is not reasonable based on the balance...it is a two way arrangement. Rehab entails making 9 payments that are reasonable and affordable...however after the rehab funds the balance is amotorized over 9yrs, 3 months which means the payment with immediately go up. Someone payment $5/month is a default waiting to happen.

People who cannot meet the rehab payments CAN go straight to consolidation...that opinion has been available for almost 2 decades. The income contingent repayment option has been available since I was collecting in the early 90's.

So they're going to get their $15K no matter how this plays out...

If your loan is held by the DOE right now, you could rehab. Those payments would be over and above the garnishment. Upon completion of 9 payments, the DOE will waive the collection fees before the loan is funded and transfered. Maybe ask someone about this.

SoapLady..you could be the next Suzie Orman..you always give great advice:)