Payment to CA

[TheGooch]

I have 2 Student Loans: 1 for $16,000 and 1 for $998.00

 

I am paying $50.00 to the OC on one loan, and $150.00 a month on the other one to a CA that has my account. Both the Collection Agency and the Dept. of Education stated that my loan will be rehabed in 12 months.

 

Did I make a mistake by paying the collection agency?? Will they actually rehab my loan, even though I have no written agreement for them to do so??

[LynnInMN]

I have 2 Student Loans: 1 for $16,000 and 1 for $998.00

 

Who are the guarantors?? This makes a difference. If the DOE is the holder, the payment goes to the DOE processing center in Greenville Texas. If it is a FFELP guarantor or Perkins loan, it goes to the CA.

 

I am paying $50.00 to the OC on one loan, and $150.00 a month on the other one to a CA that has my account. Both the Collection Agency and the Dept. of Education stated that my loan will be rehabed in 12 months.

 

Are either of these Perkins?? Only Perkins loans require 12 months of payments.

 

The $998 in unlikely to be rehabbed....balance is too low.

 

 

Did I make a mistake by paying the collection agency?? Will they actually rehab my loan, even though I have no written agreement for them to do so??

Nope. You don't need a written agreement. In fact they generally wont give you one.

[TheGooch]

I have 2 Student Loans: 1 for $16,000 and 1 for $998.00

 

Who are the guarantors?? This makes a difference. If the DOE is the holder, the payment goes to the DOE processing center in Greenville Texas. If it is a FFELP guarantor or Perkins loan, it goes to the CA.

 

I am paying $50.00 to the OC on one loan, and $150.00 a month on the other one to a CA that has my account. Both the Collection Agency and the Dept. of Education stated that my loan will be rehabed in 12 months.

 

Are either of these Perkins?? Only Perkins loans require 12 months of payments.

 

The $998 in unlikely to be rehabbed....balance is too low.

 

 

Did I make a mistake by paying the collection agency?? Will they actually rehab my loan, even though I have no written agreement for them to do so??

Nope. You don't need a written agreement. In fact they generally wont give you one.

 

 

Ok, thank you for the reply. The $988.00 loan is a Perkins Loan from UCLA. The $16,340.00 loan is a Stafford Loan.

 

I offered to pay the $988.00 in full, but the rep at the Department of Ed. recommended that I pay $50.00 a month to rehab the loan...

 

I guess you answered my questions, so thank you again!! I am on my way to Sterling Credit!!!!

[LynnInMN]

I offered to pay the $988.00 in full, but the rep at the Department of Ed. recommended that I pay $50.00 a month to rehab the loan...

 

Sounds like someone at the DOE made a mistake. You need to have a minimum balance of at least $800 remaining after the 12 months to rehab a Perkins. Your balance after 12 pays will be way below that!

Double check with the school.

[TheGooch]

I offered to pay the $988.00 in full, but the rep at the Department of Ed. recommended that I pay $50.00 a month to rehab the loan...

 

Sounds like someone at the DOE made a mistake. You need to have a minimum balance of at least $800 remaining after the 12 months to rehab a Perkins. Your balance after 12 pays will be way below that!

Double check with the school.

 

Ok, I will call them on Monday. What do you suggest I do in my situation so this does not show as a negative on my CR?