Confusion about consolidating defaulted loans

[Explorer Cat]

I have seen many posts which state defaulted student loans can still be consolidated. It appears from the direct loan website that if your student loan is in default you can still consolidate even if you have not made any repayments with the CA if you choose the Income contingent plan.

 

I have seen other postings that say you can only consolidate using Direct loans if you make 3 payments to the CA first regardless of the repayment plan you choose.

 

I am confused. Has anyone else consolidated with Direct loans prior to starting repayments to the CA.

 

I am still in that intial 60 period from a fresh default and am trying to get all the information before calling CA back. They have not been giving me factual info and have been doing the usual "You can't do rehab without this big downpayment" "You can't consolidate now" "You have to give us this large monthly payment " etc.

 

Thanks for anyone who can help. Thanks already to Lynn and I was reading about Ziggy's horror story regarding not "REAL" rehab.......which leads me to another question

 

I've seen repeated posts regarding the fact that Pioneer can't give you payment amounts in writing because it violates the original note but yet I have seen other posts regarding getting the rehab agreement in writing

So I'm confused.....what should I ask for in the written rehab agreement? Something that states this is a "Real" SL default rehab program, that the negs will come of the CR, and what about any agreements regarding fees after rehab? Should I ask that be included or do I just have to trust the CA.

 

Thanks, I am anxious to get this taken care of but am hesitant which way to go..

[LynnInMN]

I have seen many posts which state defaulted student loans can still be consolidated. It appears from the direct loan website that if your student loan is in default you can still consolidate even if you have not made any repayments with the CA if you choose the Income contingent plan.

 

If you are in default, you are automatically assigned to the ICR plan.

I have seen other postings that say you can only consolidate using Direct loans if you make 3 payments to the CA first regardless of the repayment plan you choose.

Technically those are the rules. Technically. However loans go thru without payments having been made on the loan.

 

I am confused. Has anyone else consolidated with Direct loans prior to starting repayments to the CA.

 

I am still in that intial 60 period from a fresh default and am trying to get all the information before calling CA back. They have not been giving me factual info and have been doing the usual "You can't do rehab without this big downpayment" "You can't consolidate now" "You have to give us this large monthly payment " etc.

 

The CA technically is doing it's job. The first priority of the a CA is to enforce the contract and collect cash. They are not expecting defaulters to be educated.

 

Thanks for anyone who can help. Thanks already to Lynn and I was reading about Ziggy's horror story regarding not "REAL" rehab.......which leads me to another question

 

I've seen repeated posts regarding the fact that Pioneer can't give you payment amounts in writing because it violates the original note but yet I have seen other posts regarding getting the rehab agreement in writing

So I'm confused.....what should I ask for in the written rehab agreement? Something that states this is a "Real" SL default rehab program, that the negs will come of the CR, and what about any agreements regarding fees after rehab? Should I ask that be included or do I just have to trust the CA.

 

Those CA's who do send out repayment agreements are very vague. If pioneer doesnt send them out, nothing can make them do so. The agency I worked for sent had a no letter policy. Again the HEA does not require a letter to be sent.

 

Thanks, I am anxious to get this taken care of but am hesitant which way to go..