is there a minimum rehab payment?
Date: Tue, 11/23/2010 - 23:26
I am now being garnished for my defaulted student loan. Actually, last April, Icontacted the loan agency to get out of default, agreed to a quite high payment amount, gave my banking information, and made sure the money was in the bank account each month. I got a notice from the CA that deductions would be made on X or Y date each month. Well, after two months, i noticed that strangely, no payments had been deducted....called the CA repeatedly, but got no reply -- left messages on agents voicemail, etc. Last week garnishment began at 15%. So okay, that sucked, but I want to get out of default, so I call the CA (Pioneer), and they told me that the rehab payment on top of the garnishment was going to bring me to a total of $600 per month between the two, for nine months.My paychecks are only $725 every other week (I got my degree and now work with developmentally disabled adults). So I'm paying nearly 50% of my pay in student loans. Needless to say this is going to be extremely extremely hard to do.
Do I have ANY options to reduce the payment? Even reducing it by $100/month would help. I want to consolidate after the 9 months -- will that be possible if I am out of default? I just want to make sure I'm doing the best thing....
Any help greatly appreciated. I have Stafford loans and they total about $40,000.
Do I have ANY options to reduce the payment? Even reducing it by $100/month would help. I want to consolidate after the 9 months -- will that be possible if I am out of default? I just want to make sure I'm doing the best thing....
Any help greatly appreciated. I have Stafford loans and they total about $40,000.
PS
PS not that it matters, but when I told the Pioneer CA about the earlier-this-year attempt on my part to make payments, they said "that was the old agency, we have your loan now and we can't do anything about that."
I asked CA about "reasonable and affordable" amount, but they seem to indicate that I can't pay any less than $365/month on top of the $225 garnishment to rehab the loan.
