question for LynnInMn or anyone

[iceeorange]

Hi Lynn [and SL experts]: I have read your posts with interest and need help. I defualted on my SL and the CA has called, offering rehab. THe CA is DCS. I called the Dept of Ed to make sure this was genuine and they claimed my loan was already rehabbed! I made payments to a CA a few years ago b/c they threatened to garnish me...I signed nothing, received no notice of rehab, NOTHING. Now, the CA is offering to rehab but the Dept of Ed says I need to talk to Direct Loans [round and round]. I've read that rehab only happens once...but I never received notice of rehab to begin with, so how do I handle this? My friend called anonymously and the Dept of Ed. says it is possible to rehab a esecond time. I also contacted the Ombudsman to get help resolving this.

My questions are:

1. how do I obtain rehab for these loans when the DOE says they've been rehabbed, do I deal with the CA or the DOE?

2. I am a temp employee and not sure about my employment status; how do I accurately report the financial statement if I'm not sure abot my income? [one of the reasons I called the Dept of Ed was to give accurate employment info].

3. I talked to the CA last week and gave them my contact info; they called my parents and boyfriend again after they claimed they would not. I thought once given location info, they were not allowed to harrass 3rd parties?

 

I want to start rehab and paying these loans, I just want to do it correclty w/o giving the CAs too much power. Thanks. I appreciate it ANY HELP!

[LynnInMN]

Hi Lynn [and SL experts]: I have read your posts with interest and need help. I defualted on my SL and the CA has called, offering rehab. THe CA is DCS. I called the Dept of Ed to make sure this was genuine and they claimed my loan was already rehabbed!

Did you complete 12 on time monthly payments when you were dealing the CA before??

 

I made payments to a CA a few years ago b/c they threatened to garnish me...I signed nothing, received no notice of rehab, NOTHING.

Did you move and not notify your loan holder??

 

Now, the CA is offering to rehab but the Dept of Ed says I need to talk to Direct Loans [round and round].

 

Have you talked to Direct Loans??Department of Ed is a BIG place. Where you talking to DOE collection services?? DCS is contractor CA for the DOE collection service, so they are legit.  Did you continue making your payments after the 12 months?  Have you asked DCS who they are collecting for?  They do hold contracts for several different agencies. You need to find out if you are in fact in your 2nd default.  The CA will have to do some research.

I've read that rehab only happens once...but I never received notice of rehab to begin with, so how do I handle this? My friend called anonymously and the Dept of Ed. says it is possible to rehab a esecond time.

 

You can only rehab a loan once.  If you default, you may NOT rehab again.

 

 

I also contacted the Ombudsman to get help resolving this.

 

Ombudsman should be the last resort.  You really havent gotten to the point of needing the ombudsman with all these questions.Nobody is refusing your payments not do you have any violations. 

My questions are:

1. how do I obtain rehab for these loans when the DOE says they've been rehabbed, do I deal with the CA or the DOE? 

If you assigned a CA, you must work with the CA.

2. I am a temp employee and not sure about my employment status; how do I accurately report the financial statement if I'm not sure abot my income? [one of the reasons I called the Dept of Ed was to give accurate employment info].

You just tell them your current employemnt status.  If it changes, it changes. In these days with lay offs, you are no more secure with a perm job than a temp job.

3. I talked to the CA last week and gave them my contact info; they called my parents and boyfriend again after they claimed they would not. I thought once given location info, they were not allowed to harrass 3rd parties?

Did they simply call and ask for location information?  Are you sure it was DCS?  It could have been an employee in the skip tracing department, on a seperate computer that had not updated yet.  Calling the references that you provided is not harasment.

 

I want to start rehab and paying these loans, I just want to do it correclty w/o giving the CAs too much power. Thanks. I appreciate it ANY HELP!

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[iceeorange]

Thanks Lynn. I [unfortunately] allowed them to draft payments from my checking so I have no idea what they went to. I was under the impression the payments were keeping me out of garnishment.

 

DCS is now offering rehab. They claim I will probably be accepted. However, when I called the Dept. of Ed they said my loans have been rehabbed so I don't know who to believe. If I believe the DOE this is a 2nd default. DCS is claiming I'm in default, but it sounds like they are under the impression this is first default.

 

I knew nothing about rehab when I made these payments. I believe it was at least 12 payments. I never asked them to cease deducting from my account. I [unfortunately] allowed them to draft payments from my checking so I have no idea what they went to. I was under the impression the payments were keeping me out of garnishment.

 

Should I just send in payments and assume I may rehab these loans?

 

RE: address - I had a fire and my apartment burned down. I filed a change of address but I have moved around since.

 

I did talk to DOE collections services. Do you recommend I talk to Direct Loan directly? DOE collections said occasionally mistakes are made with rehab and it is possible to rehab twice. THat is why I contacted the Ombudsman.

 

I asked them to only contact me re: this loan. How do I get them to stop contacting my parents?

 

THanks for your help. This is a large loan; it will take years to pay this back and I have no idea what course of action is the best one. I am massively stressed and want to meet this obligation head on.

[LynnInMN]

Thanks Lynn. I [unfortunately] allowed them to draft payments from my checking so I have no idea what they went to. I was under the impression the payments were keeping me out of garnishment.

 

DCS is now offering rehab. They claim I will probably be accepted. However, when I called the Dept. of Ed they said my loans have been rehabbed so I don't know who to believe. If I believe the DOE this is a 2nd default. DCS is claiming I'm in default, but it sounds like they are under the impression this is first default.

 

If you are working with a CA you are in default.  When a record arrives at the CA, it does not indicate whether or not it was a prior rehab.  They have no way of knowing unless they research it or you tell them.  If the DOE says it is a second default, then it is a second default.  They own the account. 

 

I knew nothing about rehab when I made these payments. I believe it was at least 12 payments. I never asked them to cease deducting from my account. I [unfortunately] allowed them to draft payments from my checking so I have no idea what they went to. I was under the impression the payments were keeping me out of garnishment.

 

Assuming you were rehabbed, your auto draft would have stopped once the rehab was completed.  Did you ever make any payments to anyone else other than these auto drafts?

 

Should I just send in payments and assume I may rehab these loans?

Nope...wont work.

 

RE: address - I had a fire and my apartment burned down. I filed a change of address but I have moved around since.

Did you ever notify the CA or Direct Loans??  Filing a change of address with a post office is not sufficient.  They can actually default you just because they cannot locate you. 

 

I did talk to DOE collections services. Do you recommend I talk to Direct Loan directly? DOE collections said occasionally mistakes are made with rehab and it is possible to rehab twice.

If you were not making payments after the rehab and you didnt notify them of your addresses, it would not be deemed a Direct Loan error. 

 

THat is why I contacted the Ombudsman.

 

I asked them to only contact me re: this loan. How do I get them to stop contacting my parents?

 

THanks for your help. This is a large loan; it will take years to pay this back and I have no idea what course of action is the best one. I am massively stressed and want to meet this obligation head on.

 

If you have already rehabbed and re-defaulted, the best option available to you now would be a Direct Loan consolidation.  It will get you out of default and you will be assigned payments based on your income!

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