FYI for anyone dealing with student loan rehab. By the way, my husband finally received a letter from DOE, and yes, his loan has been rehabbed. The CA was Nationwide Credit. Important points: **He never requested a rehab; just sent in payments to the CA on a regular monthly basis. **His balance is around $1,000 or so, and he sent in $10/biweekly, and on the letter they sent, they are only requiring $10/monthly from him. **All that nasty extra interest the CA was charging is *poof* gone. **All negative information is automatically gone from all three of his CRs. From an older post: Soooo....I'm going to look into rehabbing mine in the same way, although it's a different CA. They are already garnishing my wages at approx. $300/mo. I'm going to mail in $10/month, and see where that gets me. Maybe nowhere...but I shouldn't be any worse off. Still waiting on them to validate the accounting information, though. I just want the records of payments that I've already made, etc. They have two more weeks to respond. Should I send them a reminder 7 days before their 30 days is up? (I've seen that some Creditnetters have done this with other CAs with varying degrees of success.) Thanks in advance,
mam, I have a question, was the loan with the dept of education, and nation wsa the CA involved? did your husband sent the payments to greenville TX, was this a guaranteed loan,, the reason I asked, is I entered rehab verbally on the phone with the collection agency for the dept of ed,, they tried real hard for an insane amount, but we agreed on $169 due 28th of evrey month, they said,, after the 12th payment ontime,, all CA fees would be waived, all dept of ed tradelines on credit reports would be updated, and all the previous Sallie mae charge offs updated ( I found that hard to believe) they said they would sent letter confirming, never got a letter, now yesterday, i get a letter from dept of ed, showing last payment, next payment, and on the back saying all payments would be applied to CA fees first,,,,, I am mad,,,,, I wonder if when they told me all CA fees will be waived of end of 12 months is because I have paid them!!! my question is,, when you say, all your husband nasty CA fees were gone,,,, do you mean the acct statement you got had them deducated from the amount, and your husbands 10 dollar bi weekly payments were going to principle and interest??? also, when you say all neg marks on report are gone, did he have two tradelines, one from original lender, chargeoff, then a second from dept of ed? were both updated to a new status???? sorry so long, I just want to know where I stand,,,,
Let me try these one at a time... (BTW, I am certainly NOT an expert here, just sharing my experience. There are a lot more people on here with a ton more experience.) His loan was originally Stafford Subsidized loan (I guess that's with DOE). Nationwide was the CA. did your husband sent the payments to greenville TX, We actually sent the payments to GA, but it's the same CA as the Greenville, TX, CA. was this a guaranteed loan,, Yes, it was a guaranteed loan. the reason I asked, is I entered rehab verbally on the phone with the collection agency for the dept of ed,, they tried real hard for an insane amount, but we agreed on $169 due 28th of evrey month, The CA will push for as much money as possible, because they know that after that 12th payment, the loan will no longer be theirs to collect $$ on. They were asking my hb originally for $100/mo on a $2,000 loan. That's 5%, when the "normal" amount is 1 to 1.5%. they said,, after the 12th payment ontime,, all CA fees would be waived, all dept of ed tradelines on credit reports would be updated, and all the previous Sallie mae charge offs updated ( I found that hard to believe) they said they would sent letter confirming, never got a letter, now yesterday, i get a letter from dept of ed, showing last payment, next payment, and on the back saying all payments would be applied to CA fees first,,,,, Yeah, unfortunately, from all that I've been reading lately, those first 12 payments ARE going to go mostly to the CA fees. That sucks, but at least you know that those fees will be taken off once the 12 months is over, and the loan is turned over to the DOE (or whoever the loan gets sold to). I am mad,,,,, I wonder if when they told me all CA fees will be waived of end of 12 months is because I have paid them!!! my question is,, when you say, all your husband nasty CA fees were gone,,,, do you mean the acct statement you got had them deducated from the amount, and your husbands 10 dollar bi weekly payments were going to principle and interest??? The CA fees did not come off until after the 12 payments were made. About $500 came off of the total. also, when you say all neg marks on report are gone, did he have two tradelines, one from original lender, chargeoff, then a second from dept of ed? were both updated to a new status???? sorry so long, I just want to know where I stand,,,, Yes, he had two tradelines...original lender and CA. Neither one is on his report as of a few months ago. How far along in payments are you? You said that you made an agreement with the CA, and now DOE sent you a letter. Have you completed the 12th payment, or has the DOE actually sent you the rehab agreement rather than the CA? It sounds like the latter...? Good luck...I know this rehab stuff is frustrating. What is especially frustrating is that different CAs are creating their own interpretations of the Rehab Act. And then you've gotta fight for your rights...
