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Rehab Question


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44 replies to this topic

#26 jaybee

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Posted 20 December 2011 - 10:25 AM

FWIW, I just had a recent payment show up on their website, but there are still 2 old payments not showing, so it appears that *some* progress is being made with the system upgrade.



#27 Scorefighter

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Posted 20 December 2011 - 11:01 AM

Please explain the who, and situation?

I just got the "Fill out sign and return to this address to agree to get started in Rehab" letter a week ago from my Guarantor and im mailing my 1st payment post-sending that in (had made one the month previous) payment Thursday so my messed up nasty SL TLs should only be on there for another year! Merry Christmas to me! :clapping:

#28 Disgruntled

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Posted 21 December 2011 - 10:45 AM

Hope this helps to people out there at the end of their rehab. I started with the department of education and as you know the recording says continue making your payments, then it said I would be onhold for 5 minutes which last time was 20 minutes so I didn't continue with that call. I called my debt collector, and discussed it with them about what the status was, as I've been calling back every 2 weeks as they said to. Hear is what they told me, the US government is beginning to buy back up to date rehabed loans, but she didn't have any idea how they were being chosen after that, and they were only bringing in small batches at a time as their must be a lot of people at the end of their rehab. She said I would need to make my January payment most likely but to continue to call them back every 2 weeks. This would make 12 payments of my loan.

So hopefully this lady was right about them starting to be bought back, and hopefully this is good information for everyone out there. My debt collector is Conserve out of Rochester, NY. So far they've been really nice throughout the entire process.

Good Luck and Merry Christmas to all.

#29 kentuckyboy

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Posted 03 January 2012 - 07:14 PM

Here's my update from my November post in this thread:

I called Direct Loans today because my account has not transferred back to DL yet (9th payment was made in Sept). The lady on the phone told me she has no idea when accounts will be transferred and "it could be 1-2 months". Same stuff I've been hearing since September. I am beyond livid and it's hard to keep my cool when on the phone with them. I want to buy a house using VA, but I can't use VA until this student loan is taken out of default status.

#30 Dplymkr88

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Posted 03 January 2012 - 10:00 PM

Not sure if VA is different than FHA but if you make six payments then you are again eligible for government aid and programs. I purchased a house in September despite not having completed the rehab process.

#31 spartangreen

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Posted 03 January 2012 - 10:02 PM

I just made my 10th payment. I am working with Pioneer Credit Recovery. They told me that its looking like Mid-January that it will be bought back. This is really stressful. I have a tax off set and its still not removed. I really need that money for my family this year. My Dept of Education only shows my account updated until august like everybody else. I wish i knew a way to have my offset removed, while i am waiting for my loan to be bought back.

#32 Dplymkr88

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Posted 03 January 2012 - 10:21 PM

I just made my 10th payment. I am working with Pioneer Credit Recovery. They told me that its looking like Mid-January that it will be bought back. This is really stressful. I have a tax off set and its still not removed. I really need that money for my family this year. My Dept of Education only shows my account updated until august like everybody else. I wish i knew a way to have my offset removed, while i am waiting for my loan to be bought back.


Send a letter to the Ombudsman. They more than likely will remove the offset since you have fulfilled your obligation. I got a garnishment removed and I'm in the same limbo as everyone else.

#33 kentuckyboy

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Posted 04 January 2012 - 11:08 PM

Not sure if VA is different than FHA but if you make six payments then you are again eligible for government aid and programs. I purchased a house in September despite not having completed the rehab process.


Interesting. VA and FHA both have the same guidelines that say that if you have a federal loan in default then you are not eligible. Did your credit report show your loan as still in default when you applied for the FHA loan, and you just showed your lender where you have made six payments?

#34 Dplymkr88

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Posted 04 January 2012 - 11:20 PM


Not sure if VA is different than FHA but if you make six payments then you are again eligible for government aid and programs. I purchased a house in September despite not having completed the rehab process.


Interesting. VA and FHA both have the same guidelines that say that if you have a federal loan in default then you are not eligible. Did your credit report show your loan as still in default when you applied for the FHA loan, and you just showed your lender where you have made six payments?


They were not on my report. I was very upfront with my LO about the issue and was told that as long as you have made six payments your eligibility is restored.

#35 Bookersnook

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Posted 12 January 2012 - 08:19 PM

I rehabbed my loan, and finished in March of 2011. I had my 9th payment and then it took a month or two for everything to process. They wiped off all the fees while it was in delinquent status

. I had such a hard time settling with the collection agents, but was given a number by sallie mae of a person to help middle man the conversation. They were looking for a 1000 a month, and all I could afford was 400, and this was on 10,000 in student loans. This person helped me big time, and the collection agents were a lot nicer after I spoke to this person.

I did however have a hard time getting duplicate trade lines for my student loans removed. That did not get fixed until after 50 calls, and around september/october 2011

But it felt great once you get there

#36 jmedee

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Posted 13 January 2012 - 02:10 PM

I came out of the rehab program in September and am still waiting for the loan to go back to the NEW SYSTEM! So frustrating!

I want to pay it off, but, thinking I'll wait until it goes back to US Department of Education. Any thoughts??

#37 Disgruntled

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Posted 16 January 2012 - 12:02 PM

Not sure if this is good news or bad news for people at the end of the rehab and are wondering if your tax off set is going to be returned to you this year. I e-mailed the Osbudsmen requesting additional information about the tax off set for making all my rehab payments but the system is not updating and what this lady informed me of was, in her reading of the information provided to her, the tax off set has been turned off for the month of December. Well this doesn't help me because I won't be filing until February or so. She did say that its supposed to be turned off for January until they figure out what's going on with the system upgrade. I asked for something in writting and she said she couldn't do that which I thought was odd, so as I told her, I'll just take it for what its worth and see what happens when I file my taxes. Hears to hoping January is my last rehab payment - Wishful thinking I know.




#38 Dplymkr88

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Posted 27 January 2012 - 02:23 PM

Does anyone have any updates?

Nothing new on my end. Making my 13th payment today :(

#39 Disgruntled

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Posted 03 February 2012 - 08:53 AM

Update on the rehab process, I've called the US Dept. of Education and they are pretty much useless in my opinion. They never have any information on anything nor will they actually tell you anything. The person at the Dept. of Education did give me the number to the special unit at my collection agency to discuss a lower payment since I've completed the rehab program - going on 13th payment on Feb. 15th. I called this number and it was like night and day with the information. So please take all this information as you will, some of it is good, other bad.

In talking with the collection agency - Conserve - the guy was very insightful, and gave me as much information as he knew. He said that the system is slowing running and they are taking back small amounts of people who are at the end of the program. This does not mean lower amounts owed, just the number of people. The guy did not give me a number that were taken, just it was very few, He said it just started as in the last couple of days in January. I asked him realisticaly speaking when do yout think my loan would be bought, and he said he'd be surprised if I had to make a March payment. He mentioned there are two types of loans there are D loans, and something else, I didn't ask the other because he just told me what mine was. He said that D loans are priority to be taken back before all other loans. He did say that the update process to bring everyone back would take some time, as there's roughly 20 agencies with anywhere between 6-8 thousand people at the end of the process, and growing monthly.

So that's what I know, and I do call back weekly, and discuss this with both my collection agency, and the department of education. Again take it for what its worth, and if I'm wrong blame Mark at Conserve as he told me all that information.



#40 Angleena

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Posted 03 February 2012 - 04:49 PM

Status Update:

My loan was to be rehabilitated in September, as of today, I have made payments for 15 months and it still has not been rehabilitated.

I spoke with the collection agency yesterday. I was quite upset because I was told it would go through in January. I did not make a payment in January because of this and I had heard nothing from them stating that I needed to make a payment because the system at the Department of Education STILL is not updated. They were quite rude, telling me it was my fault that they had not informed me because I was not responsible. Uhm, excuse me, I have made 15 payment on time and have completed my end of this agreement, they have failed to complete their end of the agreement. She then went on to tell me that they are asking people to schedule payments THROUGH APRIL! That's right, they don't expect the system to be updated until May!!! At this point I was outraged and went off and the woman on the phone kept interupting me and raising her voice....I totally lost it when she would not even let me speak, the phone call resulted in her hanging up on me.

I called back and spoke to my worker, he kept informing me that the call was being recorded, I told him at this point I did not care and they could bring in what every legalities they wanted to, I would be happy to share this store with someone that has some authority.

Then he went on to tell me that I had to start my 9 months all over again because I missed 2 payments, again, I went off because I did not miss a single payment. I had two payments that were 7 days late and we are allowed 20 days after the due date. He put me on hold and came back and apologized that he had made the mistake and that I am still in good standing with my rehabilitation.

My opinion of the whole situation is they WANT us to get so frustrated with the system that we stop making payments and fail the process. Then we have to start all over again with the 9 months. You see, some of us qualify for deferments once they are rehabilitated. While in the rehabilitation process, they are getting money. In deferment status, they get no money. It's simple to understand really.

Anyway, as it stands, I am being told it could be as long as May before the loans are bought back by the Department of Education. I can't even believe that a "business" could even function when they have been updating their computer system for 7 months now, most places would go out of business.

I'm very frustrated.

#41 Dplymkr88

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Posted 20 February 2012 - 05:40 PM

So does anyone have any updates? I'm getting ready to make payment 14 in a week, I just want this to be over with.

#42 Angleena

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Posted 25 February 2012 - 07:29 PM

So does anyone have any updates? I'm getting ready to make payment 14 in a week, I just want this to be over with.


Last I heard they were wanting payments through April. Not good news at all. Very frustrating.

#43 helpmewithcredit

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Posted 01 March 2012 - 02:22 AM


So does anyone have any updates? I'm getting ready to make payment 14 in a week, I just want this to be over with.


Last I heard they were wanting payments through April. Not good news at all. Very frustrating.


Does anyone really believe this is a computer system update? I make my 9th payment this month and as I'm reading, I see this isn't going to mean I'm done unfortunately. My husband's loan was through Sallie Mae so it appears he's not going to have to wait after our dealings with the Ombudsman to move his forward almost immediately after the 9th payment. But, it doesn't look like that's going to be the case for me. Of course, I broke all contact with my CA after they harassed me every month telling me I wasn't in a rehabilitation program. It took me a month to get the payment set up because they wanted almost $300/mo and I'm currently unemployed. I offered $50 which they said would not accept. Then, I called the DOE who gave me a mgr's number, but that person would never answer or return calls (nice). Finally, the DOE called them to "verify" that mgr's phone was working and "boom" a call back came the same day. Once I set up my $50/mo payment, the CA continued to call me monthly and mail me info telling me I wasn't rehabilitating the loan because I wasn't paying enough. They were hostile to deal with and every time I ended up hanging up on them and calling the DOE to verify I was in fact rehabilitating the loan. When I moved last summer, I called to update my bank info with the CA and instead of updating my bank info, they started harassing me again about not rehabilitating the loan. Again, I was forced to hang up on them without updating my bank info and calling the DOE. I found out I could make my payment directly to them so I wrote a letter to the CA telling them to never contact me about this debt, that DOE had confirmed I was in a rehabilitation program so there was no need to harass me further about this. I haven't heard from them since!

But, now that I'm nearing the end of this process, I really hope the DOE gets it together and starts rehabilitating these loans. Again, I have a hard time believing it's just a computer system update that takes almost a year??? Now, I don't see tradelines for the CA on my DOE loan - just the DOE stating "in collection". I guess that is good as far as not have double the tradelines like my husband has with both Sallie Mae & USA Funds listing the same loans.

#44 LynnInMN

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Posted 01 March 2012 - 12:14 PM

$50 per month may not qualify you for a rehab...so the CA probably has good reason for calling. The concept of reaosnalble and affordable is a two way streak...what is affordable to you may not be reasonable based on your balance. $50 would be reasonable and affordable on a loan of $500-$7500...however on a balance any higher it would not be deemed reasonable or acceptable as a rehab payment. How much do you owe??? If you have a balance over a certain amount and the payment plan was not approved by the CA, your rehab will not go thru. Even though you are making payments directly, the CA still gets their commission.

FYI....technically there is no such thing as a rehab program. You are simply making payments to qualify to have your loan rehabbed. The rehab program does not kick in until AFTER those 9 payments are made.

And yes, there is a major issue with the DOE. I have double checked with my contacts.

Edited by LynnInMN, 01 March 2012 - 12:14 PM.


#45 helpmewithcredit

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Posted 01 March 2012 - 01:33 PM

$50 per month may not qualify you for a rehab...so the CA probably has good reason for calling. The concept of reaosnalble and affordable is a two way streak...what is affordable to you may not be reasonable based on your balance. $50 would be reasonable and affordable on a loan of $500-$7500...however on a balance any higher it would not be deemed reasonable or acceptable as a rehab payment. How much do you owe??? If you have a balance over a certain amount and the payment plan was not approved by the CA, your rehab will not go thru. Even though you are making payments directly, the CA still gets their commission.

FYI....technically there is no such thing as a rehab program. You are simply making payments to qualify to have your loan rehabbed. The rehab program does not kick in until AFTER those 9 payments are made.

And yes, there is a major issue with the DOE. I have double checked with my contacts.


First, reasonable & affordable when I'm unemployed is $50/mo (on $15k originally of loans or now at $20k with all the fees, etc tacked on). I personally think people allowed themselves to be trapped in a very high payment when it doesn't have to be. With the DOE, I told them that I was unemployed, but attempting to try to rehab the loan and the CA was trying to force me into consolidation instead because I could not afford almost $300/mo and that the CA REFUSED to set up ANY payment plan with me unless I pay almost $300/mo. After the DOE helped me by calling the CA themselves, the CA finally set up the payment plan for me for $50/mo. Like I said, this took almost a month to get accomplished. So, apparently, if you can't afford what they say is reasonable and affordable, you can call the DOE and they may help you get something reasonable and affordable in the real sense. According to the DOE, they told me specifically if I have a payment plan with the CA, I qualify. And confirmed that what I set up through the CA is working towards rehabilitation. If many people in the DOE told me separately EVERY MONTH that I am working towards rehabilitation and there has never been any question from the DOE that my payments aren't working towards that, then the CA isn't being honest about the amount you have to pay to qualify. The CA told me over and over AFTER SETTING UP A PAYMENT PLAN WITH ME that I didn't pay enough to qualify, but if they set up a payment plan, it qualifies. I just think people have to fight pretty hard to get a payment that is reasonable and affordable to them.

I have a tendency to assume that CA's lie about everything supposedly "required" and double check everything they say. So, far, I have found that I'm right most of the time that what they say is "required" is just their "standard line" to force people to pay them more then that have to. I mean, I was told if I could not afford the $300/mo, I had no choice but to consolidate the loan. It's all lies and bullying. I have found the best way to win is to find someone they have to answer to and go to them for help which is what I did and it worked. Now, I just hope that the DOE gets their stuff together and starts rehabilitating these loans. I'm ready to be done. :D




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