consolidation of defaulted loans
Date: Fri, 02/11/2011 - 14:17
I have 18000 in default w/ GC services and several issues I am trying to understand. My goal is to regain my financial aid elegibility.
On the Missouri Dept of Higher Educ. website it states my options are rehab, payment in full or consolidation. I have never consolidated my loans.
the MDHE site clairfies that you must make 3 satisfactory payments before you are eligible for consolidation if in default.
issue # 1. GC services says the only option is 12months of payments and school eligibility in 6months. I told them about the MDHE statements and was told by the operator she knew nothing of anything like this. only option was to rehab
issue #2. My employer received a letter from MDHE stating a wage garnishment had been ordered and where are the payments. My employer has not received a garnishment order. I have a small office (2 of us) and I am the HR/payroll etc. I called and the same GC services operator said that if I agreed to a rehab program before any wages were withheld the wage garnishment order would be a non issue. I asked her if she was sure that was correct and she assured me it was true. I told her I did not want the business in trouble and they should mail out a new order so the employer can be in compliance. she told me no. it had already been sent once.
PLEASE ADVISE:?:
On the Missouri Dept of Higher Educ. website it states my options are rehab, payment in full or consolidation. I have never consolidated my loans.
the MDHE site clairfies that you must make 3 satisfactory payments before you are eligible for consolidation if in default.
issue # 1. GC services says the only option is 12months of payments and school eligibility in 6months. I told them about the MDHE statements and was told by the operator she knew nothing of anything like this. only option was to rehab
issue #2. My employer received a letter from MDHE stating a wage garnishment had been ordered and where are the payments. My employer has not received a garnishment order. I have a small office (2 of us) and I am the HR/payroll etc. I called and the same GC services operator said that if I agreed to a rehab program before any wages were withheld the wage garnishment order would be a non issue. I asked her if she was sure that was correct and she assured me it was true. I told her I did not want the business in trouble and they should mail out a new order so the employer can be in compliance. she told me no. it had already been sent once.
PLEASE ADVISE:?:
Issue 1..rehab is 9 months and of course they know the rules on
Issue 1..rehab is 9 months and of course they know the rules on consolidation! It is actually on the Direct Loan website that a borrower must be in satisfactory repayment! I used to handle MDHE accounts and we did both consolidations and rehabs...
Issue 2...If they are now offering you a rehab now that the garnishment order has been issued, GRAB IT! I have heard of MDHE stoppng garnishment in favor of the rehab...technically they are not suppose to do this but they do. If you do the garnishment route, you will still have to rehab ON TOP of the garnishment payments to get out of default.
