Hello, I am trying to write a letter to both Dept. of Ed and to the CA. I want it to sound as if I know what I am talking about and what I am entitled to without sounding rude or overbearing. Please let me know if this is OK or any suggestions, sorry it's long! May 26, 2009 To Whom It May Concern: I would like to rehabilitate my student loan. I will tell you of my financial situation first and then what I would like to see happen. The only correspondence I will allow to happen between the 3 of us, will be through mail. I insist of having everything in writing so if you decide you want to take me to court or try to garnish my wages I will have proof to show the judge that I tried to work this out. I lost my job in January, I am employed again now. I have included a copy of my first check, if this is not enough I will send you a letter from my employer stating this is my pay. I was able to put in a few extra hours last pay period, this is not a normal schedule which is why I have not included another copy of my paycheck. I have blacked out the name of the employer, for now, in order to protect myself from being harassed or wages garnished without going to court. I bring home $440.00 a month. I am soon to be a single mom. I do not have any assets worth anything besides my over 10 year old SUV. I have been doing a lot of research and spoken to my attorney. If you take me to court to try to have my wages garnished you will get 15%. So I am going to offer that to you now. That means my monthly payment would be $66.00. I will give you 12 check post dated checks. I will not do ACH and I already know that I do NOT have to do ACH in order to qualify for loan rehabilitation. The account that the checks will be coming out of will be for only this payment. There will never be more than $66.00 in this account in at any time. I will set up an automatic transfer each month, so the payment will always be there. In order for me to proceed with the agreement I will need a Rehabilitation Letter that states the followingâ?¦. My payment is $66.00 a month, if more than the $66.00 is pulled out then you will be responsible for any NSF check fees accrued due to breaking the agreement. Stating the principal amount, outstanding interest and the guarantor of the loan(s), this must be itemized. That I am entering into a rehabilitation agreement for 12 months to bring my loan out of default and remove all negative data from my credit reports. This rehabilitation covers principle, collection costs and ALL interest. If this loan is sold to a new servicer at end of 12 months loan must be paid in full by that servicer. Collection Fees waived upon completion of rehabilitation. If you refuse to work with me and the payment $66.00 a month, I will be forced to file bankruptcy. I do know that claiming student loans on bankruptcy is difficult UNLESS you can prove extreme financial hardship; well itâ??s obvious I can prove that. I would like to work with you and start to repair my credit for the future. At this point though, I understand my credit is already shot and I will do whatever I have to in order to protect my 1 year old, and if that means bankruptcy, so be it.
By law you can't write a post dated check for longer then 5 day's,In my opionion it's not going to happen,i could be wrong but its worth a shot to try.
Well as I've read through these forums I've seen other people do that or at least say they were going to do that. Other than that is the letter OK?
1) It's too long. Just lay-out the facts. 2) They don't know you so they don't care about your situation. You won't draw sympathy. 3) The check thing won't work. The collection agency is huge. They don't want checks hanging around. Besides that kind of defeats the purpose of proving to them that you can manage on-time payments, which is needed to rehabilitate the loan. 4) They WILL find your employer and WILL garnish. They will also take social security, etc. 5) You can't go bankrupt on them. They offer enough options that prevent you from doing that. The only way you can win a bankruptcy against them is if you are a quadriplegic. 6) Sometimes it is not in your best interest to fight. This is being one of them. The US Department of Education will follow you until you die or move to a 3rd world country.
Actually I wasn't trying to "draw sympathy" I am laying down the facts of my financial situation. Quite frankly, besides the embarrassment of having my wages garnished with my employer. I don't care if they garnish, I know they won't get more than what I am offering them now. Things are as low as they can get with me now and I figure it can only go up from here. On the website it says to contact the Ombudsman only if they won't work with you, do you think I should still try that option first? I way shortened the letter but kept in how much I make and that I am a single mom, and figured I would send it to both Dept of Ed and CA, should I just send it to the Ombudsman too?
Contact the Ombudsman first try to work it out.The majority of us here know your not trying to draw sympathy,we've all been in your shoes,hey you have to hang in all this will be behind you,so don't worry about things you can't control,try to fix what you can.
Try the ombudsman first. You don't want to give too much info in any letter you write. There's time for that later. Definitely don't send them any documentation like checks or anything like that.
