Not Eligable for Rehabilitation or C0nsolidation
Date: Mon, 10/10/2011 - 14:39
I have two student loans that are in default status. It's a long story. In short I was attending a school, I changed my mind the student loan was refunded to me and I used it to attend another school. I originally tried to work on getting the loans repurchased, however, it did not work. I was told by my original debt collection agency that I could complete the William D. Ford Consoliation Application to get out of default. I did and now Sallie Mae Guarantee is saying that I am ineligable for the William D. Ford Cons. because I was in "never enrolled status." They are also telling me that I am not eligable for Rehabilitation or for making 6 on time monthly payments to get out of default. This was told to me by Sallie Mae Guarantee not the Debt Collection Agency. Is this so and have you heard of anyone else not being eligable for Rehabilitation? Is Rehabilitation up to the debt collection agency or Sallie Mae Guarantee? Any help would be greatly appreciated. If I could pay this in full I would, but there is no way.
Thanks.:???:
Thanks.:???:
Quote:I have two student loans that are in default status. It's
Quote:
I have two student loans that are in default status. It's a long story. In short I was attending a school, I changed my mind the student loan was refunded to me and I used it to attend another school. |
Ok.....your loan was dispursed, you were refunded the excess and you withdrew and went to another school?? This is a big big no no. When you withdrew the funds should have immediately been returned to the lender. If not immediately repaid, you are defaulted very quickly.
Quote:
I originally tried to work on getting the loans repurchased, however, it did not work. I was told by my original debt collection agency that I could complete the William D. Ford Consoliation Application to get out of default. I did and now Sallie Mae Guarantee is saying that I am ineligable for the William D. Ford Cons. because I was in "never enrolled status." |
Yup...saw this type of loan before. They came to us in the same category as suspected fraud accounts. Since you did not attend, you are not eligible for deferments, forebearances or grace periods EVER....so no rehab or consolidation. YOU have to pay it off and it says default until the entire balance is paid. This is not a common occurance so that is why nobody was able to tell you this. You have NO options to resolve this...you acted in violation of your student loan prom note ...under borrower certifications it states...
"I will immediately repaid the loan proceeds that cannot be attributed to educational costs for attendance...at the school that certified my loan eligiblity."
You can see a copy of an MPN here...http://www.kheaa.com/pdf/forms/staf_mpn_fill.pdf
