Loan rehabilitation

it's difficult to continue with the payments so that my loan could be rehabilitated. please suggest.

tiny,
you can go for a consolidation in that case

buddy

Quote:

Thanks for the input Ari :D

Let me put what I know about Rehabilitation. It's a tool to remove the default status of the student loan. The purpose of this program is to check if the borrower is punctual with their payment habits.

That is the reason, I think; you cannot pay a big installment instead of monthly payments. You're right Ari, breaking down payments into halves or thirds ensure the affordability. Rehabilitation is really very helpful. I have read somewhere that Rehabilitation then consolidation is the best policy on student loans. Any suggestions :?:

Actually, student loan collectors try their best to turn borrowers away from defaulted loan consolidation because it is not good medicine for bad credit! They will always encourage you to just tighten your belt a little, maybe take a pt job, and press on with the rehab. It is the best medecine for your credit.

Ari,

Part time jobs are rally helpful at times. Hope you are aware of Federal Work Study Program. It falls under federal grant. Students can opt the service that is related to their course of study as well.

I have collected some information of part time jobs for students in my blog. You can check it-

http://www.debtconsolidationcare.com/bryan/

Consolidation followed by Rehabilitation is the best combination while repaying default student loans???you are right on this. You posts are very informative, keep the good work going.

Thank you Bryan I will! I loved working with people on their student loans! Too bad I couldn't bring it with me when I moved!

There is another way to remedy defaulted loans but it is only able to be done thru Dept. of Education

Is there? When I worked at CCA, all debtors who refused to speak to us tried calling the DOE only to be referred back to us by them. Is this some kind of settlement you are talking about?

Collectcorp currently has my student loans and offered me loan rehab program, but the monthly amount is not something I can afford, right now. I want definitely want to rehab my loans. Do I have to deal with Collectcorp or can I rehab with another company? Besides, their reps are a bit hamfisted and it bothers me that they seem so comfortable with trying to bully someone.

Consequences of default
Default has consequences that are extremely serious and hard to recuperate.

By federal regulations, if you are in default on a federal student loan, you are not eligible for further Title IV student aid.
You are also no longer eligible for loan forgiveness or payment relief.
Reports of default are made to all national credit bureaus. This will affect your ability to buy a car or house, or to get a credit card.
You will be subject to more serious collection activities such as
the demand for immediate payment in full
lawsuits where a judgment can be placed to prevent you from purchasing or selling your assets
the assignment of your account to a collection agency, with up to a 25 percent fee added to your outstanding balance.

Options for getting out of default
Here's what you can do to get out of default:

Pay the loan in full.
Discuss a repayment plan with your lender. -- You have several ways to repay your loan by making monthly installment payments on your account.
Standard Repayment ???????? fixed monthly payments of at least $50 with up to 10 years to repay in full.
Graduated Repayment ???????? monthly payments will begin low and increase gradually over time.
Extended Repayment ???????? lowers monthly payments over a longer period of time and has a predictable payment schedule.
Income Contingent and Income-Sensitive Repayment ???????? monthly payments are calculated as a percentage of your income.
Rehabilitate your loan
Consolidate your loan
Determine if you qualify for payment relief


NEVER ignore default notices from your loan servicer!

I don't evem know where to start. My family right now is so broke that I would barely be able to scrape up 5 bucks a month! The government needs to help the default folks somehow!

I owe about 30k from loans taken out and defaulted 11 years ago...I have 2 kids and one on the way. I am broke and work a full time job. HELP!

Quote:

I have student loans that have defaulted and the IRS has stopped my tax refund. Can anyone please give my some advise. Please do your good deed for the day and help me out on this one. My marriage is on the line here. Thank you and god bless. Hope to hear input soon.

Quote:

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

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?

Quote:

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.

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?

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.

Quote:

Can you consolidate private student loans? If so what company would be able to help me with this?

I dont know of any lenders consolidating private loans right now. Have you done a google search to check??

I don't think there are any right now. Not only that, but if there was one, you would need near perfect credit to even be considered.

Which is better Rehabilitating or Consolidating?

One is not better than the other...both have advantages and disadvantages.

Read the stickies at the top....it explains both programs.

SOAPLADY --- I have an outsanding $10,000 interest balance on my defaulted 3 Stafford loans. If I consalidate with Direct Loan, are they going to add that to my principle and make me pay capitalized interest. I think right now, on my original 3 defaulted stafford loans, the interest is not capitalized.

your interest will be capitalized into you new loan.

I have over 100K of student loans, some of which are federal loans and most of it is from Sallie Mae. I have more than 3-4 collection companies who are trying to collect from me. I already studied alot about the rehab program and am ready to do so, however, I am not sure who to contact first?

Only federal loans are rehabable. Sallie Mae originate both federal and private loans. You need to figure out which loans are what and who are the guarantors. Check NSLDS for your federal loans.

It really doesnt matter who they are from but who they are with now.

Quote:

I have just started rehabilitation with my loans. I called 1 800 304 3107 and found out that my 09 tax refund is subject to assignment. I know there is nothing I can do about the 09 refund. What I want to know is, if I rehab successfully, will my 2010 refund be subjet to assignment also?

Hello I've started reading these forums and what an excellent tool thank you. I currently owe 23,000K in Federal loan. My account was with America Student Assistance and is now with the collection agency Delta Management. First they tell me i need to pay in full and to dive into my 401K or get an equity loan or put the full sum on a credit card. I then read this site and learn i can Rehabilitate my loan.
I called and asked to speak with a qualified supervisor. I said i dealt with a collector who wasnt offering reasonable and affordable payments and I wanted to rehab. The collector also asked for a 4000 dollar down payment BEFORE i make my 9 monthly payments. I tell the supervisor that I am willing to make reasonable payments of 250 per month and that I understand that I AM NOT REQUIRED BY LAW TO PAY A DOWN PAYMENT AND DOING SO WOULD VIOLATE FDCPA. She tells me there is no such thing and she is qualified and knows all the rules.
Am I wrong in this situation????? I want to rehab and I can make the 250 monthly payments if offered to me (which is the standard 1% or my balance) but cant do a 4000 down payment. Is it true that telling me that i NEED to make a down payment is against the law? Please help me i would appreciate any information in my case.

Nope, it is not against the FDCPA for them to ask for a down payment. There is nothing in the Higher Education Act that "requires" a downpayment to qualify for the rehab program. They can ask all they want...they just cannot make it a condition of rehab. So technically the collector was correct.

Keep calling and offer your $250 per month. (Is your $23k balance with or without collectiton fees?) If they continually turn it down, call the ombudsman.

Thank you SOAPLADY for the response. So if i understand correctly then I could be able to pay 250 a month without having to do a down payment, even if they keep telling me i need to make one. My balance is 23K after the fines. Basically, the down payment they want me to pay is the fines/fees of around 4K dollars.

Can my student loan/grant money be taken from me by previous creditors to pay for debts?

I have about $45,000 in credit card debt from many things, but probably $20000 of that is from building my house. Is there a way for me to maybe consolidate my debt. I make about over $100k a year, just have quit a bit of debt, 2 mortgages, condo and some other stuff. Have over $100k in equity in my house, is a heloc a good idea. What about a bill consolidater that I hear about on the radio advertised all the time, saying they could save you at least half of what you owe