Thread: unable to rehabilitate student loan

Hi all, this is my very first post, I have been reading here for several weeks. Everyone here has great strategies and approaches; I hope to be one of those success stories. So here goes:

I had a student loan with Wachovia/ACS, the lender was Wachovia and the servicer was ACS, and the guarantor was PHEA. Since I defaulted on my student loan, PHEA, the guarantor purchased the loan from Wachovia. Now PHEA is telling me to talk to DCS the ca. I’m trying to rehabilitate my loan, but PHEA would not speak with me; I called DCS to rehabilitate, but all they are telling me is to make a payment. And they told me I could not rehabilitate just consolidate. I am so confused, is it legal what they are doing?

I realize PHEA is a state program, but did this loan guarantee have any federal character at all? If so, rehabilitation is a mandatory opportunity.

If not, you would need to delve into PA statutes and regulations to see whether rehab is something you should be offered.

yes, you are correct. It is a fed loan, PHEA is now the lendor and they tell me to speak with DCS. I should be able to rehab my loan with PHEA, even though they send it to DCS, the ca.

The exact type of loan is important to how it gets handled. As I read it, it's possible that
you might get a better shake waiting for the loan to be assigned to the federal government.

Collections Guide to Defaulted Student Loans - Home

I am far from an expert though. It's possible that another approach would work better.

Awesome! Thank you for your time and help.