My wife is about to have her wages garnished by a student loan co. I really dont need to go through the verification process. The CA has contacted us about setting up payments before the garnishment will come into effect. I dont think they're bluffing us because I now have the letter from the OC stating the garnishment. When I tried to contact the OC they just referred me to the CA. I need to know if it is possible to rehabilitate the loan through the CA, and if so what steps should I take to do it correctly?
They MUST allow you to rehab the loan per DOE law. They will try to get you to make large monthly payments which is BS, so demand they allow you to make reasonable monthly payments. Also make sure they send you written proof they are doing a REHAB, not a refi (very important if you want to repair your credit). Sal
The payment they're talking about is about 150 for a 14000 loan seems resonable to me, would you agree?
Re: Student Loan Rehabilitation? HE I pay 178 a month and I have over 25K in student loan debt. Are they including collection fees in that? That seems pretty high.
Re: Student Loan Rehabilitation? HE That seems kinda steep. You should really search on this board for posts by Marci, or about student loan rehabilitaion.
Do we know if these are federal loans? Why don't you ask the CA what interest rate you are paying? You will generally pay a higher rate for the 12 months of rehabilitation, and then will pay the current market rate when the loans are purchased by another lender, once the rehab is completed. Again, I have no idea if all student loans are eligible for rehab, as I would suspect not.
