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I am near the conclusion of my student load default rehabilitation with GC Services. They say it is time to find a bank to continue working with.
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Numbers:
Current amount due: $3,300
Monthly payment through rehabilitation: $60 / month
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They sent me some paperwork to fill out and return which includes a form where I assent to collection costs of 18.5% of the loan, which is unfortunate but seems unavoidable. There is also a statement saying "I agree that the lender may capitalize any outstanding accrued interest at the time of the Rehabilitation" which I assume means that they will include the accrued interest in the amount that I owe them. Is that correct?
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In addition, there is a form asking for my bank information (including routing and account number) giving permission for GC Services to continue to pull the agreed monthly amount from my account until the loan is rehabilitated, at which time "this form also authorizes "CREDITOR" to continue with the automatic debit entries upon completion of the rehabilitation program. The amount debited will be based upon the new terms of my rehabilitated loan(s)."
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I have a lot of fear about filing this form. Looking around this forum and others, there are so many people claiming that GC Services is just a scam and saying never, Never, NEVER give out your bank information because "they will rip you off", etc, but it's so hard to tell if these are people who are just mad and frustrated or if there's a real danger there.
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Is working with GC Services dangerous for me?
Will they rip me off?

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My second concern is that I'm signing a form allowing the new creditor to take what they want before I know what that amount will be. I'm not comfortable with that. If the amount is reasonable ($60 - $90 / month), then I would like to go forward with this process.
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What are they likely to want per month?
How do I find out?

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One last thing: Is there any advantage going to my local bank (or other institution) to see if they are interested in picking up the loan, or is it best to continue with the process GC Services has begun?
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Thanks for your help.




I am no expert on student loans but as far as I know GC Services is a vendor for the US Department of Education and do student loan consolidation. So if the paperwork is all in order, they should work along the terms they set, unless of course you default.

Sub: #1 posted on Wed, 11/14/2012 - 20:10

Steve Barris Steve Barris

(Posts: 1045 | Credits: )

You cannot just walk into a bank and have them rehab a federal loan. Your guarantor is arranging it for you...you do not have any choice.

Same goes for the collection fees...you must agree to capitalize the collection fees. No choice in the matter. Your paperwork is standard DOE rehab information.

Sub: #2 posted on Wed, 11/14/2012 - 20:26

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17310 | Credits: )


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