Called to rehab, told to consolidate

[RB73]

After over a week reading this forum, I thought I understood the rehab process, but after calling PHEAA, I'm really confused.

 

First, my original loans were for $23,000 and about $1,500. Together after fees and interest they are $40,000 according to the person I spoke with, and rehab will not help at all with those fees (the major majority of that extra money). He also said the least they would take for a rehab payment was $680. He said that was the 'fair and reasonable' amount (it was for a 7 year payoff, the best I could be offered). I kept saying that I'd read where I could submit paperwork on my income and expenses and my payment for rehab would be based on that, and he said that was incorrect, but that I could consolidate and my payments would only be $380. He also said that I could defer immediately, as I'm a current grad student, and also immediately qualify for financial aid, and more loans. Because from what I've read here I know he's wrong about the rehab, I wonder if he's right about what happens if I consolidate?

 

So my options look like this to me:

 

Call back tomorrow and hope to get someone else, and push for a rahab with payments based on my income, hoping to end up paying less than the 1%, because we really can't afford that. Then when rehab is over, defer and then get a new loan to cover my last semester (I won't be able to work my last semester, and will need a loan).

 

Go ahead and consolidate, he said it's not that bad for my credit, as it will be marked as paid. Then I can defer immediately and put the money I'd be paying in rehab towards the principle and also work on building other positive TLs and dealing with my other baddies. Then get the loan for my final semester.

 

So, do these look accurate to the rest of you? It seems weird to me that they'd give me another loan without having paid anything. I understand after rahab, but to just consolidate, and then be able to defer and get a new loan just doesn't make sense to me. Any corrections to my options, or advice would be appreciated. I re-searched and found the statutes that were posted, of course not while on the phone, but I can pull them up now if I go for rehab, if what I was told about consolidating isn't true.

 

Thanks in advanced,

RB

[TxQuiltGirl]

He lied to you. Over and over and over.

 

First, my original loans were for $23,000 and about $1,500. Together after fees and interest they are $40,000 according to the person I spoke with, and rehab will not help at all with those fees (the major majority of that extra money). He also said the least they would take for a rehab payment was $680. He said that was the 'fair and reasonable' amount (it was for a 7 year payoff, the best I could be offered). The standard payoff for a SL is 10 years, not 7. He can't change the rules on that; he's just trying to get more money out of you quicker to bump up his check. I kept saying that I'd read where I could submit paperwork on my income and expenses and my payment for rehab would be based on that, and he said that was incorrect, but that I could consolidate and my payments would only be $380. He also said that I could defer immediately, as I'm a current grad student, and also immediately qualify for financial aid, and more loans. Because from what I've read here I know he's wrong about the rehab, I wonder if he's right about what happens if I consolidate? He was feeding you a line of crap. You can get the $380 payments on rehab too. If you do consolidate, you CAN defer and you CAN immediately qualify for more FA and loans. But is that really what you want? Read on.

 

So my options look like this to me:

 

Call back tomorrow and hope to get someone else, and push for a rahab with payments based on my income, hoping to end up paying less than the 1%, because we really can't afford that. Then when rehab is over, defer and then get a new loan to cover my last semester (I won't be able to work my last semester, and will need a loan).

 

Go ahead and consolidate, he said it's not that bad for my credit, as it will be marked as paid. Then I can defer immediately and put the money I'd be paying in rehab towards the principle and also work on building other positive TLs and dealing with my other baddies. Then get the loan for my final semester. It will still show every negative and the default status. It's not GOOD for your credit either. And if you defer, and then make payments, it will take your loan out of deferment.

 

So, do these look accurate to the rest of you? It seems weird to me that they'd give me another loan without having paid anything. I understand after rahab, but to just consolidate, and then be able to defer and get a new loan just doesn't make sense to me. Any corrections to my options, or advice would be appreciated. I re-searched and found the statutes that were posted, of course not while on the phone, but I can pull them up now if I go for rehab, if what I was told about consolidating isn't true.

 

Thanks in advanced,

RB

 

 

You should call back and get someone else ... as Lynn says, go through the switchboard, get the supervisor's name and work with THAT person. The "reasonable and affordable" payments have to be that for BOTH parties - not just the CA. And if you can make $400/month payments, you will be making the standard 1%. There's no reason at all why they should refuse that. But you can tell the supervisor that he DID.

 

Good luck to you.

[trenton]

Hi, after reading and rereading, I don't believe I quite understand. I hope someone can help. I haven't filed my taxes this year yet. Tonight I received a call from someone (sure it was a CA), on behalf of my Student Loan, I started to hang up, but I had just sent in a letter stating I would like to start making payments on this, so she told me about the rehab program and I decided that 103 dollars a month wouldn't be so bad. My question is, "Will they keep my federal income taxes when I file?" I'm pretty sure they will, and I've never had that happen before.

Does anyone know. Thanks in advance for any replies.

[trenton]

Hi, after reading and rereading, I don't believe I quite understand. I hope someone can help. I haven't filed my taxes this year yet. Tonight I received a call from someone (sure it was a CA), on behalf of my Student Loan, I started to hang up, but I had just sent in a letter stating I would like to start making payments on this, so she told me about the rehab program and I decided that 103 dollars a month wouldn't be so bad. My question is, "Will they keep my federal income taxes when I file?" I'm pretty sure they will, and I've never had that happen before.

Does anyone know. Thanks in advance for any replies.

 

 

Bumping for any advice please.

[RB73]

UPDATE:

 

I called back and spoke to someone else who corrected what the other guy told me. The $380 is the rehab amount, not the consolidation amount. I'm not 100% sure we can handle it, I'm going to have to sit down with our finances and make sure we can actually make this payment, but that sounds MUCH better than $680. She said we can then consolidate, or wait until I'm done with grad school and consolidate any loans from there into it as well.

She is faxing a form, and I'll let you all know how it goes. Thanks for the help!

 

 

RB

[preezie]

It does depend on who you speak with. Some people want to overdo their job. Hopefully the next person will work with you.

 

 

 

 

After over a week reading this forum, I thought I understood the rehab process, but after calling PHEAA, I'm really confused.

 

First, my original loans were for $23,000 and about $1,500. Together after fees and interest they are $40,000 according to the person I spoke with, and rehab will not help at all with those fees (the major majority of that extra money). He also said the least they would take for a rehab payment was $680. He said that was the 'fair and reasonable' amount (it was for a 7 year payoff, the best I could be offered). I kept saying that I'd read where I could submit paperwork on my income and expenses and my payment for rehab would be based on that, and he said that was incorrect, but that I could consolidate and my payments would only be $380. He also said that I could defer immediately, as I'm a current grad student, and also immediately qualify for financial aid, and more loans. Because from what I've read here I know he's wrong about the rehab, I wonder if he's right about what happens if I consolidate?

 

So my options look like this to me:

 

Call back tomorrow and hope to get someone else, and push for a rahab with payments based on my income, hoping to end up paying less than the 1%, because we really can't afford that. Then when rehab is over, defer and then get a new loan to cover my last semester (I won't be able to work my last semester, and will need a loan).

 

Go ahead and consolidate, he said it's not that bad for my credit, as it will be marked as paid. Then I can defer immediately and put the money I'd be paying in rehab towards the principle and also work on building other positive TLs and dealing with my other baddies. Then get the loan for my final semester.

 

So, do these look accurate to the rest of you? It seems weird to me that they'd give me another loan without having paid anything. I understand after rahab, but to just consolidate, and then be able to defer and get a new loan just doesn't make sense to me. Any corrections to my options, or advice would be appreciated. I re-searched and found the statutes that were posted, of course not while on the phone, but I can pull them up now if I go for rehab, if what I was told about consolidating isn't true.

 

Thanks in advanced,

RB