12 Rehab Payment = 3 Rehab Payment

I wonder the same thing as I would like to do it that way.

 

I didn't see anything in the HEA that would prevent it.... maybe a policy of the lender. anyway, I would like to try it also, so let me know.

 

YES you can... I rehabbed a few months early. Just make sure it is 12 payments.... write 12 checks.....

 

Bkev,

Are you sure about that? I was told that I could not prepay for the rehab.

Ed

 

Re: 12 Rehab Payment = 3 Rehab Paym

Well, it's hard to know who to believe when two sources as credible as Bkev and the Department of Education are balanced against one another, so I can't serve as judge in this case. Regardless, I just called the Department of Education Ombudsman line (1-877-557-2575), and they stated that you cannot rehabilitate student loans on an accelerated schedule. She said the loan must be repayed with 12 on-time regularly scheduled payments. When I pressed her, asking if one could make those 12 on-time payments more quickly, say once a week, she said absolutely not.

Frankly, I'm not sure which source is more credible. Both have excellent track records.

Doc

 

Re: 12 Rehab Payment = 3 Rehab Paym

Could be that several calls to several different operators would yield different answers.

Lets all call and compare results.

 

Re: 12 Rehab Payment = 3 Rehab Paym

Sounds like a plan to me.

Doc

 

Re: 12 Rehab Payment = 3 Rehab Paym

YES I'M SURE! I paid mine off 6 months early... ONTIME is defined as before it is past due... If you pay it as 12 payments, they have to delete.... Don't take this BS....

 

Re: 12 Rehab Payment = 3 Rehab Paym

Doc and anyone else...

Whose schedule is she going by? What if you paid in 12 weekly installments, meaning, every Friday (on schedule) you made your payment? Isn't that a regularly scheduled payment?

(I could be missing the point here, but what the heck!)

 

Re: 12 Rehab Payment = 3 Rehab Paym

You may be right, Erica! That's the point Bkev is making so well. Try calling up the Department of Education yourself (1-877-557-2575) and see what they say. Then of course you've got to decide what you're gonna do, lol.

Doc

 

Re: 12 Rehab Payment = 3 Rehab Paym

The way the HCA describes rehabilitation of defaulted loans is 12 monthly(1 yr) payments. What the act doesn't say is that you must take 12 months to make the payments. BKEV is correct in that regard, however, the guarantor/collection agency handling the rehabilitation is not required to provide a letter of rehabilitation until :

a) 12 months have passed

b) the loans have been returned to a servicer

part (b) normally can take up to 4-6 months from the 12 month rehabilitation period.

So, in essence, both the Dept of Ed and Bkev are correct.

Hope this clears up the muddy waters a little.

Brian

PS I am in the student loan business

 

Re: 12 Rehab Payment = 3 Rehab Paym

if so, then you should know it's the H E A not the HCA......

Again, I did it... paid 6 additional months at 6 months and got it off. You have to enforce your rights.... hasn't anyone figured that out yet?


What section do you see 12 months? Where is that in the HIGHER EDUCATION ACT? Tweleve on time payments.....

 

Does anyone know if an undefaulted student loan can be rehabilitated....I was able to start paying on them again before they defaulted.

 

Yes you can rehab a late payment which is what I was doing. So rehab is NOT only for defaulted loans.

 

Re: 12 Rehab Payment = 3 Rehab Paym

I ended up having to do 15 months of payments because I paid early in the beginning trying to accelerate the process. I went around and around on this trying everything I could think of, to no avail. At the end of the day, the "rules" state that it must be twelve monthly payments. Further your payment must be received and posted no more than 15 days before your due date and no more than 10 days after your due date for 12 consecutive months (or else the clock starts over). I took this way way up the chain of command. The reasoning I got was that the rehab was an opportunity to demonstrate your ability and willingness to honor your debt in a timely manner. Once you've done that 12 times, they are satisfied that you are likely to continue and allow for the rehab to go through. Many people don't know this, but it is NOT a requirement that a lender approve the rehab and give you a new loan at the end of the 12 months. However I was told that 99.99% of people do get the new loan after satisfying their 12 month payment agreement.

I personally would not mess with it. Hope that helps.

dt

P.S. Once you have rehabbed your loan you DEFINITELY DO NOT WANT TO DEFAULT as this is a one time offer. No more chances if you mess up your payments after the rehab.

 

Tony,

Generally, it is true that you have to make 12 *once a month* payments for rehabilitation, since that is what the HEA states, but some of the guarantor agencies/servicers do go around that.

I had four separate student loans going through rehabilitation, with one having begun rehab about 4 months earlier than the other three. At the end of the 12 months for the 1st loan, the guarantor agency/servicer (not to be confused with the collection agency) made the decision to rehab ALL of the loans, even though three of them had only been paid on for 8 months.

The CA balked and I asked questions, but the servicer said "no big deal". I made VERY sure that I got a full reinstatement contract and "paid in full" letter from the servicer before I felt comfortable trusting the early rehabilitation.

I think this early rehab was more of a factor of me calling them at least twice a month to stay on top of payments being applied, etc.... The servicer got tired of dealing with me and rehabbed all the loans to get me out of their hair.


Unfortunately, I'm still in their "hair", because they screwed up my NSLDS records.

 

Hey Roni.

I spoke with my student loan lenders and they said I can only rehab my loans if they were past 270 days or defaulted...the latest mine were was 180 days..How did you talk them in to letting you rehab the undefaulted late pay loans so they will clean up the negative entries on your CR's?

Thanks

S.

 

Hi all. I've recently joined to get my student loan defaults resolved.

I've been reading the HEA, Subchapter IV-Student Assistance, there are two sections referring to rehab:

1) Part B - Federal Family Education Loan Program, Sec.1078-6. Default reduction program, which states "upon securing consecutive payments for 12 months of amounts owed on a loan"

2) Part D - Federal Perkins Loans, Sec. 1087dd, they say "on the loan makes 12 ontime, consecutive, monthly payments of amounts owned on the loan"

The perkins sounds crystal clear to me, it will take 12 months, but on the FFEL loan, it sounds like you could interpret it to be 12 consecutive payments, each payment based on an agreement on an amount per month. Seems like they certainly could have been as clear here as in the Perkins section.

In my case, it has been more than 7 years so a lot are off of my credit report, now if I rehab, as soon as I make a payment, will all those reappear again, and stay for a year til I get them rehabbed?

Thanks.

Rockbottom

 

I doubt they will show up after one payment it if they aren't reporting now, but even if they did, they would be deleted after the year is up. You may want to get all the credit you need *before* you rehabilitate, and then lay low for a year until the rehabilitation is up.