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Studen Loan Rehab?

Date: Wed, 01/26/2011 - 23:42
Submitted by on Wed, 01/26/2011 - 23:42
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I've defaulted on my student loans and have begun the process of a loan rehabilitation through GC Services. The people seem to be helpful and all but now, after I've made 7 of the 9 payments I recieved this giant intimidating stack of papers in the mail yesterday. The directions say that I need to fill them out (with the help of a representative who never seems to be available) and send it back UPS by the deadline (which is 3 days from now). I'm a little worried. It's all so high pressure! I'm responsible and don't want to fall behind on my school loan payments but I work 40+ hours a week and still only bring home 16k/year. I have other bills that need to be paid and I'm freaking out about how much my payments will be once my loan is rehabilitated. Is this my only option? Is GC Services a reputable company? What is this hardship program that is mentioned above? Could it be helpful to me? I'd like to go back to school once I get my finances in order.... and would rather save and pay for each class rather than take out loans since that is how I've gotten myself into this mess. Any advice would be greatly appreciated. I just don't trust collection agencies... they've got to make their money somehow. Why not from me?


Hi!
Welcome to the forums!

Since you have already made payments for so many months, so I think it is better to not opt out of the program at this stage. You have already made several payments. I don't think you'll get your money back if you back out. I think you should get in touch with the supervisor and speak directly with him about this issue. He may be tell you why and how you need to fill out the papers. As far as I know, you can qualify for rehabilitation after making around 9 monthly payments on time. So, may be these papers are regarding that.

No, rehabilitation is not the only way out. You can take advantage of debt consolidation to pay off the student loans. If you have defaulted on federal student loans, then you can also go for loan forgiveness program. As far as income is concerned, you should try to find a job with better pay scale.

You can get all the relevant information about GC services from the following page:
http://www.debtconsolidationcare.com/gcservices.html


Submitted by Good Nelly on Thu, 01/27/2011 - 02:15

Good Nelly

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Rehab is the only way to go in terms of your credit. As soon as you are notified that your loan has been rehabbed, immediately apply for a Direct Loan Consolidation Loan thru the Department of Education. With the Direct loan program, you can get on the income contingent repayment plan, making your payments a very affordable % of your income. Sign the papers.

FYI...Being in default, you do NOT qualfiy for loan forgiveness.


Submitted by SOAPLADY on Thu, 01/27/2011 - 03:28

SOAPLADY

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