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DCS & IBR consolidation plans

Date: Fri, 06/24/2011 - 15:54
Submitted by on Fri, 06/24/2011 - 15:54
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DCS calls me at work despite my written request not to call me there. Garnishment coming down the pipes so I am talking with them now. background: HESC of NY kicked over my loan to them after 4 years of unemployment, but not before tacking on the full 25% fee allowed by law to my total balance. I am employed again, making about 1500/month, with almost 1200 in monthly bills including credit card debt repayment plan, rent, utilities, groceries, car, etc. I verbally agree to send them $100 bucks good faith. I also am supposed to send them 3 forms from loanconsolidation.ed.gov filled out and signed for a consolidation. They said this is for an IBR plan. They said I need to get this to them by the end of the month. This good faith payment they asked me for. Why should I send this to them before my IBR is even approved? What happens to the 25% fee HESC tacked onto my overall debt? Does that get paid first? I can't find any information about consolidation loan interest rates, specifically rates for loans in default that were never consolidated in the first place. This sounds so fishy because when I went to pay back my CC debt, the debt was discharged by each company and there was no rolling interest. Now under consolidation there will be interest, but is it higher than the compounding interest on the lump sum debt DCS claims I owe. Is DCS required by law at any time to provide me with monthly statements showing me my balances and payments? My tax returns have been taken for the past two years and I have never seen an ounce of paper work showing this to be applied anywhere. And these were 4 digit sums. Any help or advice is appreciated.


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DCS calls me at work despite my written request not to call me there. Garnishment coming down the pipes so I am talking with them now.
This probably comes under the one call allowed by the fdcpa for them to inform you of their intent...in their case, to garnish.

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background: HESC of NY kicked over my loan to them after 4 years of unemployment, but not before tacking on the full 25% fee allowed by law to my total balance. I am employed again, making about 1500/month, with almost 1200 in monthly bills including credit card debt repayment plan, rent, utilities, groceries, car, etc. I verbally agree to send them $100 bucks good faith. I also am supposed to send them 3 forms from loanconsolidation.ed.gov filled out and signed for a consolidation. They said this is for an IBR plan. They said I need to get this to them by the end of the month. This good faith payment they asked me for. Why should I send this to them before my IBR is even approved?
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Have you taken the time to read the Direct Loan website? Maybe then you would have figured out is your choice for repayment. Also, you made an agreeement to prevent garnishment. Failure to follow thru could result in the agreement being voided and garnishment starting.
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What happens to the 25% fee HESC tacked onto my overall debt? Does that get paid first? I can't find any information about consolidation loan interest rates, specifically rates for loans in default that were never consolidated in the first place. This sounds so fishy because when I went to pay back my CC debt, the debt was discharged by each company and there was no rolling interest.
Student loans are very different to credit card debts. How they are paid and interest is federally governed.
Your collection fees are capitalized into your balance upon consolidation. Absolutely nothing fishy about it. Again, if you had gone to the direct loan website, you would have learned about how your interest rate is calculated.

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Now under consolidation there will be interest, but is it higher than the compounding interest on the lump sum debt DCS claims I owe
See above.



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. Is DCS required by law at any time to provide me with monthly statements showing me my balances and payments?
Nope..they are not a billing company. Statements are a courtesy that accounts in good standing receive.
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My tax returns have been taken for the past two years and I have never seen an ounce of paper work showing this to be applied anywhere. And these were 4 digit sums.
Have you asked for a payment history. Nobody is going to provide anything for you unless you ask for it specifically. What you want is a guarantor pay history.


Submitted by SOAPLADY on Sat, 06/25/2011 - 07:34

SOAPLADY

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Thanks for your response. I had asked for the paper record trail and meant to ask what I should do when i've asked but never received.

Anyway, I sent off the forms after speaking with my rep at DCS and apparently agreeing to do the ICR (not IBR as originally thought) consolidation loan is enough to;

1. Get the default off my credit rating without a full rehab program.
2. I worked out an affordable monthly payment plan to DCS applied to my balance to get them from not garnishing me while I wait 30-90 days for the consolidation loan to be processed.
3. And apparently the loan collection fees are reduced from the 25% DCS original charges down to 18%, which is a minor victory I guess.

It all seems unbelievable after reading about all of the things I could have done to me legally by this organization so I won't complain, but I have to ask if this seems "right" to you.

Thanks again for replying.


Submitted by on Mon, 06/27/2011 - 16:18

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