I've been receiving calls from them about repaying my student loans. A couple of days ago, I receive some mail from them. Apparently, the federal govt has taken to hiring private collection agencies to try and strong arm people into paying back defaulted loans. I also found out that Creditcorp is not even a US company, they are based in Canada. Nothing against Canada, but it just rubs me the wrong way that a non-US collection agency is threatening me with wage garnishment and lawsuits. Anywho, I want to call them and try to work out some payment arrangements so I can possibly rehab my loans. Last time I spoke with someone there, they were asking for $350/mo for 12 consecutive months. I can't afford that. On top of that, I just filed a BK7 1 month ago. I know the student loans are not dischargable, but considering everything, what are my options? Should I call them back and try to work out some sort of payment schedule or should I try to get some help from an Ombudsman? Any helpful suggestions would be very much appreciated.
What you really need is loan rehab, which won't automatically be offered. I don't know the specifics offhand, but I believe the min payment is 1% of the loan balance, which has to be paid for 12 months, then you can get your loans back into better shape.
