Entered into a rehab program....totally confused!!!

[Pillow]

I just received my repayment agreement with the U.S. Department of Education from Collection Company of America and in order to avoid garnishment I agreed to repay my loan and was told that if I didn't think I could make the 15% payment that they requested that I should call and make arrangements. Well I did that and I faxed in my paystubs like they asked and offered to give 10% which is almost $150 month, well they declined my offer and ordered me to pay $290.00 a month. I was told I would have to pay that amount for 9 months and the remainder of my loan would be purchased by another agency and I would have to repay it within 9 years but that is not in the agreement letter i just received, it said I would be reviewed after 6months but nothing about 9 months being my last payment due.

 

While going over my agreement I noticed that my principle balance is $1942.72 and my interest balance is $1057.62 but there is another charge for that says Other charges balance for $750.08 which totals $3750.42, I realized that after making these payments I will still have a balance of $1140.42 which is only $802.30 of my priniciple. I was told I had to put down a down payment of $340 but instead of one payment they added it onto my payment but I did the math and if i make the addtional $64.00 payment it will add up to over $550.00; so i'm not sure how they came up with this number ($340). $290 is alot of money a month and I just wanted to lower it a little but they wouldn't budge.

 

the letter says if i don't sign this agreement I will be garnished. I've already recieved my notice of garnishment letter and all of this was discussed within the 30days but now it's over the 30days and i want to know if I want changes made to this agreement can they still garnish me. Also, the garnishment amount is less than what i've been ordered to pay but i don't want a garnishment on my record so I want to repay it but I don't want to just be taken advantage of because of not knowing the system.

[LynnInMN]

I just received my repayment agreement with the U.S. Department of Education from Collection Company of America and in order to avoid garnishment I agreed to repay my loan and was told that if I didn't think I could make the 15% payment that they requested that I should call and make arrangements. Well I did that and I faxed in my paystubs like they asked and offered to give 10% which is almost $150 month, well they declined my offer and ordered me to pay $290.00 a month. I was told I would have to pay that amount for 9 months and the remainder of my loan would be purchased by another agency and I would have to repay it within 9 years but that is not in the agreement letter i just received, it said I would be reviewed after 6months but nothing about 9 months being my last payment due.

 

While going over my agreement I noticed that my principle balance is $1942.72 and my interest balance is $1057.62 but there is another charge for that says Other charges balance for $750.08 which totals $3750.42, I realized that after making these payments I will still have a balance of $1140.42 which is only $802.30 of my priniciple. I was told I had to put down a down payment of $340 but instead of one payment they added it onto my payment but I did the math and if i make the addtional $64.00 payment it will add up to over $550.00; so i'm not sure how they came up with this number ($340). $290 is alot of money a month and I just wanted to lower it a little but they wouldn't budge.

 

the letter says if i don't sign this agreement I will be garnished. I've already recieved my notice of garnishment letter and all of this was discussed within the 30days but now it's over the 30days and i want to know if I want changes made to this agreement can they still garnish me. Also, the garnishment amount is less than what i've been ordered to pay but i don't want a garnishment on my record so I want to repay it but I don't want to just be taken advantage of because of not knowing the system.

 

 

YOU HAVE TO RETURN THE 30 DAY GARNISHMENT NOTICE!!!!!! No if's and's or buts!!! Since that letter went out, if must be returned!! Discussing it is not going to cover you!!

 

Altering the agreement will void it. Plan and simple!

[TxQuiltGirl]

You need to answer the garnishment letter.

 

That said, $290 a month for a balance of less than $4k is not reasonable. You shouldn't have to pay more than $50. And since they refused your payment and demanded more, I would call back and speak to a supervisor.