Need some advice whether I'm not being tricked into something. I had a consolidated loan that went into default and was held by DOE. When I called DOE they told me that it is now handled by a CA. I called the CA and said that I wanted to get into rehab program. They called me back and said that they can do it. At first they tried to make me pay downpayment anywhere from 25% - 50%. When I said that I never heard of any downpayment required, they said that they are just trying to get my monthly payments to be as low as possible, and without downpayment my monthly payments would have to be 1.2% of loan amount. Is this true? I agreed to this. Then they asked me to pick a date and told me where to mail my payments (straight to the DOE) When I asked when will I get the paperwork they said there is no paperwork, just mail your payments on time and supposedly 6 month down the road I'll get some letter from DOE. Is there really no paperwork I have to sign on my end? It just seemed a little weird. Any info would be appreciated.
