Hi, I have a couple perkins student loans that are currently in rehab with a CA. I'm wondering if any of you here know where I can find the following the rules or regulations regarding to: 1. Whether CA can add collection fees to my student loan debt. 2. What rights do I have as a borrower while my loans in rehab? CA never sent me any information regarding to my payments. However, they kept sending me "friendly reminder" which have wrong due date and due amounts. In addition, they ignored my requests for payment history... Thanks!
contact the dept of Ed. I *think* they have rules regarding collection fees for rehabbed SLs. You should try and straighten this out quickly. You don't want to get knocked out of rehab because you'll have to start over.
There was a post here on 9-30-02 titled "new here - ? re student loans" by Cornbread (great name). In it, he said that they can add 19% in collection fees. You should be able to find the post by a search and view the rest of what was said.
This is for FFEL loans (do perkins fall under this?). I can't get it to make a website address! This is from the gov't site. TITLE 34--EDUCATION DEPARTMENT OF EDUCATION PART 682--FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM--Table of contents Subpart D--Administration of the Federal Family Education Loan Programs by a Guaranty Agency ..... [[Page 743]] ..... (iv)......A guaranty agency must provide the borrower with a written statement confirming the borrower's reasonable and affordable payment amount, as determnined by the agency, and explaining any other terms and conditions applicable to the required series of payments that must be made before a borrower's account can be considered for repurchase by an eligilible lender. The statement must inform borrowers of the effects of having their loans rehabilitated (e.g. credit clearing, prooibility of increased monthly payments). The statement must inform the borrower of the amount of the collection costs to be added to the unpaid principal at the time of the sale. The collection costs may not exceed 18.5 percent of the unpaid principal and accrued interest ant the tim of sale.
