defaulted student loan that the dept. of education holds I've been dealing with the collections agency, but they won't put anything into writing. they've told me its better to do a settlement that a rehab. that to do a rehab, I have to have automatic check withdrawl that a rehab will stay on my credit report for 7 years, so I should just do the settlement. From this site, I know thats not true Can I work directly with the DEpt of EDucation? the collection agency says I can't, but can I?
I would call William D Ford and see what they have to offer. My student loans were in default and with a CA. I called them to consolidate (fastest way to get out of default, long story) and they were very helpful. As a matter of fact, the consolidation was complete in 2 months. I will try to find the number for you, and post it. Good Luck!
1-800-557-7392. William D Ford Federal Direct Loan Program. Call that number. In the consolidation packet I received they mention rehabilitation and consolidation. Ask them to send you all materials on both options. Remember that rehabilitation clears all of the negative information about that loan from your credit report, while consolidation does not. Good Luck!
Wow. You can appeal to the Ombudsman's office and work with the guarantor. The Ombudsman's office will straighten these lies out with the guarantor who will then striaghten them out with the collection agency. I'd tell my guarantor and the DOE Ombudsman's office what the collection agency rep said. I'd pitch a fit with the guarantor and get (from them, because they know) the name of the supervisor of the collection agency. Then call and pitch a fit with the CA supervisor. They need to understand that you know that rehabilitation is your RIGHT under the Higher Education Act and that HEA mandates that a rehabilitated loan to be deleted from the credit report (see http://carreonandassociates.com/sl.htm for more information on what the HEA says re rehabilitation). Then call the DOE Ombudsman's office (http://osfaombudsman.ed.gov/) to get a case worker and tell them that your guarantor and their collection agency are hindering your rehab efforts by saying the above. Give the Ombudsman's case worker the name, phone and extention of the guarantor person managing your account and the collection supervisor of the collection rep managing your account. You do have to pay the collection agency directly during the time of the rehab. But you can do your communication with your guarantor and a Ombudsman case worker (if needed) for the duration of the rehab. I never talked with the collection agents. The two agents I did and who lied to me in the process heard from my guarantor that same day (two separate occasions, two separate companies) and the problem was fixed to my satisfaction that very same day. No, you don't have to have do automatic check withdrawal if you don't want to. Just don't be late or let them "be late" for you. Also, before you start rehabilitation, get a letter mailed to you stating the rehab agreement and the monthly amount qualifying you for the rehabilitation. Also, get the collection costs, interest and principle itemized from your guarantor as well as copies of your original promissory notes. Hope this helps,
thanks for all the help. I've been dealing with this CA for 2 months now. They're driving me nuts with their only verbal answers, and their lies. I'll call the numbers/sites you've recommended. thanks again.
Marci is right. I've just been thru all of this. I think the CA I am dealing with is more on the up and up..although the first guy I talked to lied to me. Good luck.
