Rehab Loan - 9 out of 10 rule

[jojee33]

1) I am currently in a rehab program with Premiere credit for my Direct Consolidation Loans. I am paying $1700 a month which is killing me but I am in month 8 and trying to just make it to the end. I read the loan to say that you have to make 9 out of 10 payments. I called a month ago because the money was tight and asked to skip the 7th payment. They skipped it without returning my phone call. Today I checked my bank account and they took the money out of my account (20 days from the 16th, which was my due date for the 7th payment).

 

Am I understanding the loan to mean I have to make 9 out of 10 payments, meaning I can miss one? I know that with Perkins they have to be consecutive, but mine aren't Perkins. They just shifted the payment, they didn't skip it and now rent and misc other things are going to bounce. I will try calling of course on Tuesday...but when they wanted the money initially, they called 5-6 times a day. Now? Not a phone call returned.

 

2) Also I know that I have to keep making payments until someone buys the loan, but can I lower them to the original loan amount which was $900? I only have a budget to keep this going until the end of the year and then I am sunk. The loan goes back to the original terms...but does that mean payment?

 

Any help would be great.

[LynnInMN]

1) I am currently in a rehab program with Premiere credit for my Direct Consolidation Loans. I am paying $1700 a month which is killing me but I am in month 8 and trying to just make it to the end. I read the loan to say that you have to make 9 out of 10 payments. I called a month ago because the money was tight and asked to skip the 7th payment. They skipped it without returning my phone call. Today I checked my bank account and they took the money out of my account (20 days from the 16th, which was my due date for the 7th payment).

 

You CANNOT skip a payment. Payments must be made within 20 days (I believe, check HEA) of your due date. How much do you owe? Generally they only require you to make a 1% payment

Am I understanding the loan to mean I have to make 9 out of 10 payments, meaning I can miss one? I know that with Perkins they have to be consecutive, but mine aren't Perkins. They just shifted the payment, they didn't skip it and now rent and misc other things are going to bounce. I will try calling of course on Tuesday...but when they wanted the money initially, they called 5-6 times a day. Now? Not a phone call returned.

 

You never skip a payment without talking with a collector.

 

2) Also I know that I have to keep making payments until someone buys the loan, but can I lower them to the original loan amount which was $900? I only have a budget to keep this going until the end of the year and then I am sunk. The loan goes back to the original terms...but does that mean payment?

 

Any help would be great.

 

 

You consolidate once the rehab is complete to get more manageable payments.

[jojee33]

Thanks for the reply. I owe almost $200,000 so that is the correct payment. I didn't know how good I had it and should have NEVER defaulted. My payments were around $900.

 

I ended up contacting the Ombudsman and they confirmed that the payments had to be consecutive.

[dusum420]

i will never again complain about how much i owe or pay on my SL again.