Trying to Rehab - CBE Group wants my pay stubs

[Doward]

Ok, trying to rehab my $20k in Student Loans (all Direct Loans) and CBE Group is the current CA.

 

I make $14k/year. With my extra side jobs, I managed to make a whopping $20k last year. I badly want to rehab my loans, but CBE is demanding $330/month. I can't do that. What I CAN do is ~$100/month. CBE wants me to send in my last 2 pay stubs, and try to put me on an income contingent repayment policy. I asked the lady point blank if that was rehab, and she told me 'not really, but we'll do what we can' - no, I want REHABILITATION. I'm trying to fix all of this. I called the DOE and explained the situation, and they gave me another number to call, but it's still with CBE Group. I'm going to try that route on Monday, but my question is this -

 

Am I right to feel that CBE Group demanding my pay stubs seems off? I could understand if they want an expense / income financial statement, but JUST my pay stubs seems weird to me.

 

Thank you for your time, all!

[LynnInMN]

I make $14k/year. With my extra side jobs, I managed to make a whopping $20k last year. I badly want to rehab my loans, but CBE is demanding $330/month. I can't do that. What I CAN do is ~$100/month. CBE wants me to send in my last 2 pay stubs, and try to put me on an income contingent repayment policy

.

 

There is no such thing as income contingent repayment when setting up a default on the path the rehab. You are entitled to "reasonable and affordable payments" reasonable based on what you owe and affordable based on you income. The reasonable is set by the CA. How much do you owe?

 

I asked the lady point blank if that was rehab, and she told me 'not really, but we'll do what we can' - no, I want REHABILITATION. I'm trying to fix all of this. I called the DOE and explained the situation, and they gave me another number to call, but it's still with CBE Group. I'm going to try that route on Monday, but my question is this -

 

Am I right to feel that CBE Group demanding my pay stubs seems off? I could understand if they want an expense / income financial statement, but JUST my pay stubs seems weird to me.

 

If you have a large balance, $100 although affordable to you may not be reasonable based on the balance.

[Doward]

My current balance is $29,834 combined total of all direct loans.

Edited March 13, 2012 by Doward

[helpmewithcredit]

Ok, trying to rehab my $20k in Student Loans (all Direct Loans) and CBE Group is the current CA.

 

I make $14k/year. With my extra side jobs, I managed to make a whopping $20k last year. I badly want to rehab my loans, but CBE is demanding $330/month. I can't do that. What I CAN do is ~$100/month. CBE wants me to send in my last 2 pay stubs, and try to put me on an income contingent repayment policy. I asked the lady point blank if that was rehab, and she told me 'not really, but we'll do what we can' - no, I want REHABILITATION. I'm trying to fix all of this. I called the DOE and explained the situation, and they gave me another number to call, but it's still with CBE Group. I'm going to try that route on Monday, but my question is this -

 

Am I right to feel that CBE Group demanding my pay stubs seems off? I could understand if they want an expense / income financial statement, but JUST my pay stubs seems weird to me.

 

Thank you for your time, all!

 

Send them NOTHING & NEVER believe what they say!!! I have $20k in loans and guess what, I got them to set up $50/mo payments after some hard work. Here's what you need to do: Call Dept of Education and tell them they will not work with you to find a reasonable payment. CA tried to send me to consolidation because I refused their $273 payment offer! DOE gave me a Mgr's number for the CA (as you also received), who wouldn't return my calls (to set up a reasonable payment). But, do call it and leave DAILY messages (I did just so they would know I was serious). So, I called DOE again and complained that I was trying to rehabilitate and CA Mgr would not return calls. DOE called the Mgr for me (to see if the phone was working ) and guess what, I got a call from the Mgr same day to set up my $50/mo payment. I also got them to send me a payment agreement showing all the payments to be made (faxed to my online fax so I'd have it before I paid anything). Here's the kicker though: After I set up this plan with them and started making monthly payments (receiving statements from them showing the $50/mo being paid), I kept ALSO getting harassing mail and phone calls that I was not on a rehabilitation plan because I was not paying enough (LIES). Everytime I would end up arguing with the person from the CA and hanging up on them, then calling DOE who VERIFIED that ANY PAYMENT AGREEMENT YOU SET UP WITH THE CA WORKS TOWARDS REHABILITATION PERIOD. This happened several months in a row with me upset calling DOE verifying AGAIN and AGAIN that my payments were working towards rehabilitation. DOE told me I could pay the payments through them directly since I was having so much trouble with the CA. So, I wrote a letter to the CA stating that very thing - that I knew my payments were working towards rehabilitation, that the DOE will take my payments and that I would no longer discuss this debt with them and to NEVER contact me again about the debt. I haven't heard a thing from them since and have been making my monthly payments to DOE now at $50/mo and it will rehabilitate the loan (making my 9th payment this month).

 

And don't let them bully you into consolidation either. My husband had no problem setting up the initial payment, but in the end was bullied to consolidate BEFORE they would rehabilitate the loan. He refused and we ended up having to go through the DOE Ombudsman who fixed the situation and his loans were rehabilitated within 2 wks of his 9th payment (they were Sallie Mae loans). You have to be very persistent and again, don't believe what the CA tells you. Check always with DOE on how everything works and get help. DOE is over all student loans so they have power to help you when you need it.

Edited March 13, 2012 by helpmewithcredit

[helpmewithcredit]

I want to add that once my DOE loans are rehabilitated, I will probably consolidate them and set a payment plan of 10 years. I read that both of those things help your credit, but don't consolidate before rehabilitation. Read the whole article: http://www.myloansconsolidated.com/2009/01/06/how-student-loans-affect-your-credit-score/

 

In my husband's case, he is currently back in school so we'll wait for him to finish before we consolidate his (since he got another few loans he'll add before finishing school).

[Doward]

Ok, trying to rehab my $20k in Student Loans (all Direct Loans) and CBE Group is the current CA.

 

I make $14k/year. With my extra side jobs, I managed to make a whopping $20k last year. I badly want to rehab my loans, but CBE is demanding $330/month. I can't do that. What I CAN do is ~$100/month. CBE wants me to send in my last 2 pay stubs, and try to put me on an income contingent repayment policy. I asked the lady point blank if that was rehab, and she told me 'not really, but we'll do what we can' - no, I want REHABILITATION. I'm trying to fix all of this. I called the DOE and explained the situation, and they gave me another number to call, but it's still with CBE Group. I'm going to try that route on Monday, but my question is this -

 

Am I right to feel that CBE Group demanding my pay stubs seems off? I could understand if they want an expense / income financial statement, but JUST my pay stubs seems weird to me.

 

Thank you for your time, all!

 

Send them NOTHING & NEVER believe what they say!!! I have $20k in loans and guess what, I got them to set up $50/mo payments after some hard work. Here's what you need to do: Call Dept of Education and tell them they will not work with you to find a reasonable payment. CA tried to send me to consolidation because I refused their $273 payment offer! DOE gave me a Mgr's number for the CA (as you also received), who wouldn't return my calls (to set up a reasonable payment). But, do call it and leave DAILY messages (I did just so they would know I was serious). So, I called DOE again and complained that I was trying to rehabilitate and CA Mgr would not return calls. DOE called the Mgr for me (to see if the phone was working ) and guess what, I got a call from the Mgr same day to set up my $50/mo payment. I also got them to send me a payment agreement showing all the payments to be made (faxed to my online fax so I'd have it before I paid anything). Here's the kicker though: After I set up this plan with them and started making monthly payments (receiving statements from them showing the $50/mo being paid), I kept ALSO getting harassing mail and phone calls that I was not on a rehabilitation plan because I was not paying enough (LIES). Everytime I would end up arguing with the person from the CA and hanging up on them, then calling DOE who VERIFIED that ANY PAYMENT AGREEMENT YOU SET UP WITH THE CA WORKS TOWARDS REHABILITATION PERIOD. This happened several months in a row with me upset calling DOE verifying AGAIN and AGAIN that my payments were working towards rehabilitation. DOE told me I could pay the payments through them directly since I was having so much trouble with the CA. So, I wrote a letter to the CA stating that very thing - that I knew my payments were working towards rehabilitation, that the DOE will take my payments and that I would no longer discuss this debt with them and to NEVER contact me again about the debt. I haven't heard a thing from them since and have been making my monthly payments to DOE now at $50/mo and it will rehabilitate the loan (making my 9th payment this month).

 

And don't let them bully you into consolidation either. My husband had no problem setting up the initial payment, but in the end was bullied to consolidate BEFORE they would rehabilitate the loan. He refused and we ended up having to go through the DOE Ombudsman who fixed the situation and his loans were rehabilitated within 2 wks of his 9th payment (they were Sallie Mae loans). You have to be very persistent and again, don't believe what the CA tells you. Check always with DOE on how everything works and get help. DOE is over all student loans so they have power to help you when you need it.

 

Man, that gives me hope!! I'm already starting to save that extra to put into a separate account (as I know I have to MAKE DEAD CERTAIN the money is there for the rehabilitation to work!)

 

I'll be calling the number the DOE gave me tomorrow to see what we can do.

[helpmewithcredit]

Man, that gives me hope!! I'm already starting to save that extra to put into a separate account (as I know I have to MAKE DEAD CERTAIN the money is there for the rehabilitation to work!)

 

I'll be calling the number the DOE gave me tomorrow to see what we can do.

 

If you do what I did, you will get a payment plan set up that is reasonable to YOU. And it will rehabilitate the loan. Just keep calling the CA Mgr number and if you don't get a call back in 2-3 days, call the DOE again making it VERY clear that you are working to set up a reasonable payment to rehabilitate the loans and the CA Mgr will not return your calls. Usually if the DOE gets involved, the CA tends to get things going (even though they don't like it and will try to continue to harass you). Once you set up the payment, you are golden! From that point, if they take your payment monthly, you have NO other reason to speak to them. In my case, I moved and my account changed. When I tried to call and change my bank account, I was harassed about not being on a rehab plan so I couldn't even give them my new account info since it ended up in a fight over that AGAIN. This is how I ended up just paying the DOE directly because the stupid CA acted like it was their opportunity to change the arrangement or rather act like we didn't have one. Again, the DOE is your link to sanity.

Edited March 14, 2012 by helpmewithcredit

[jaybee]

Man, that gives me hope!! I'm already starting to save that extra to put into a separate account (as I know I have to MAKE DEAD CERTAIN the money is there for the rehabilitation to work!)

 

I'll be calling the number the DOE gave me tomorrow to see what we can do.

I'm rehabbing my 17K loan for $25 a month (on my 9th payment). As the above poster said, be careful when dealing with CAs and don't be manipulated by them!

[helpmewithcredit]

Man, that gives me hope!! I'm already starting to save that extra to put into a separate account (as I know I have to MAKE DEAD CERTAIN the money is there for the rehabilitation to work!)

 

I'll be calling the number the DOE gave me tomorrow to see what we can do.

I'm rehabbing my 17K loan for $25 a month (on my 9th payment). As the above poster said, be careful when dealing with CAs and don't be manipulated by them!

 

AMEN! That is awesome! I never thought about trying to get a $25/mo payment! WOOHOO! Either way, I knew it was a waste of time to set something up that was unrealistic to try to pay when I knew I couldn't afford it.

[Doward]

After 3 calls I finally got someone from CBE on the phone. Says they won't go lower than $310/month for rehabilitation. Calling DoE now

[helpmewithcredit]

After 3 calls I finally got someone from CBE on the phone. Says they won't go lower than $310/month for rehabilitation. Calling DoE now

 

Took me a month to get my payment of $50/mo set up with the CA. Many calls back and forth. But, you'll get it done if you are persistent.

[Doward]

Spoke with Pamela of the DoE - she informed me that CBE is CONTRACTUALLY REQUIRED to work with me regarding a reasonable payment.

 

Going to call CBE back tomorrow after work, see if they want to work something out.

[helpmewithcredit]

Spoke with Pamela of the DoE - she informed me that CBE is CONTRACTUALLY REQUIRED to work with me regarding a reasonable payment.

 

Going to call CBE back tomorrow after work, see if they want to work something out.

 

Call the DOE again and speak to someone else. See if they will call GBE for you since they won't make a reasonable payment plan. If that doesn't work, contact the DOE Ombudsman and tell them what's going on. I think if you use the Ombudsman, GBE will get their act together pretty quick. Otherwise, you are just going to argue endlessly with GBE who will continue to lie to you. http://www.ombudsman.ed.gov/about/contactus.html

[LynnInMN]

I just spoke with an old friend of mine who works for a collection agency as a collection manager working DOE accounts. They are contractually required to follow the rehab guidelines of reasonable and affordable...as when I was collecting the rules still are affordable for the borrower and reasonable based on the balance. They are NOT permitted to set up $25 payments for a $17k loan. They still have to follow the 1% rule as standard payment although reasonable payments may be less...as a general rule interest has to be covered. He told me has seen the DOE intervene on a couple of cases lowering payments but they cannot. It is not a case of the CA's not budging...it is a case of what they are REQUIRED to do. I read him this thread and he states that whatever office is accepting these lower payments is technically violating the CA contract with the DOE. The DOE sets high bench marks for recovery and from what he has been told on DOE conference calls is that accepting lower payments is setting the borrower up for failure. Interest on the example amount of $17k is around $100 per month so paying $25/month is costing the borrower an additional $75 per month.

[helpmewithcredit]

I just spoke with an old friend of mine who works for a collection agency as a collection manager working DOE accounts. They are contractually required to follow the rehab guidelines of reasonable and affordable...as when I was collecting the rules still are affordable for the borrower and reasonable based on the balance. They are NOT permitted to set up $25 payments for a $17k loan. They still have to follow the 1% rule as standard payment although reasonable payments may be less...as a general rule interest has to be covered. He told me has seen the DOE intervene on a couple of cases lowering payments but they cannot. It is not a case of the CA's not budging...it is a case of what they are REQUIRED to do. I read him this thread and he states that whatever office is accepting these lower payments is technically violating the CA contract with the DOE. The DOE sets high bench marks for recovery and from what he has been told on DOE conference calls is that accepting lower payments is setting the borrower up for failure. Interest on the example amount of $17k is around $100 per month so paying $25/month is costing the borrower an additional $75 per month.

 

Still, it means the DOE can intervene and get the payment set up if you cannot financially pay for a larger payment. They did on mine as I am currently unemployed.

[jaybee]

It is not a case of the CA's not budging...it is a case of what they are REQUIRED to do. I read him this thread and he states that whatever office is accepting these lower payments is technically violating the CA contract with the DOE.

A CA not playing by the rules? Not exactly shocking.

 

FWIW I was trying to get payments between $50 and $100 on my $17K loan. The CA themselves suggested the $25 monthly payment. The only reason I mentioned it was to dispel the myth that it's impossible to lower your rehab payment below 1%.

[helpmewithcredit]

Spoke with Pamela of the DoE - she informed me that CBE is CONTRACTUALLY REQUIRED to work with me regarding a reasonable payment.

 

Going to call CBE back tomorrow after work, see if they want to work something out.

 

Call the DOE again and speak to someone else. See if they will call GBE for you since they won't make a reasonable payment plan. If that doesn't work, contact the DOE Ombudsman and tell them what's going on. I think if you use the Ombudsman, GBE will get their act together pretty quick. Otherwise, you are just going to argue endlessly with GBE who will continue to lie to you. http://www.ombudsman.../contactus.html

 

Don't know where you are with this, but I have a word of CAUTION. I just made my 9th payment and was told for the first time tonight from the DOE that the CA doesn't show (in the system) a payment plan (rehabilitation). For 8 months, the DOE has said I was on a payment plan. He said I could make monthly payments that they would take, but that unless they NOTE the account as a payment plan, I don't appear to be in one. Is this a dirty trick the CA is playing at the end of my plan to screw me???? He suggest I could ask the CA to transfer the account back to the DOE and they would approve the payment plan - YEAH RIGHT.

 

So, BE SURE you get that payment plan you set up in writing and keep a copy. I've GOT MINE! So, they might play dirty, but I can still win this game they are trying to play. I already filed my complaint with the Ombudsman and told them that the DOE suggested that the CA transfer the account back to them and they'll approve the payment plan. Then, I just have to wait for the DOE to start rehabilitating loans and I'll be set!!!

[helpmewithcredit]

Don't know where you are with this, but I have a word of CAUTION. I just made my 9th payment and was told for the first time tonight from the DOE that the CA doesn't show (in the system) a payment plan (rehabilitation). For 8 months, the DOE has said I was on a payment plan. He said I could make monthly payments that they would take, but that unless they NOTE the account as a payment plan, I don't appear to be in one. Is this a dirty trick the CA is playing at the end of my plan to screw me???? He suggest I could ask the CA to transfer the account back to the DOE and they would approve the payment plan - YEAH RIGHT.

 

So, BE SURE you get that payment plan you set up in writing and keep a copy. I've GOT MINE! So, they might play dirty, but I can still win this game they are trying to play. I already filed my complaint with the Ombudsman and told them that the DOE suggested that the CA transfer the account back to them and they'll approve the payment plan. Then, I just have to wait for the DOE to start rehabilitating loans and I'll be set!!!

 

Update: The Ombudsman called me yesterday. Very interesting slimeball move by the CA. They told the Obmudsman that "yes" I was in a rehabilitation, but that 2 payments during the last nine months were never made. They would have been more than willing to transfer my account back to the DOE, but I never finished the rehabilitation program. That is so stupid because I immediate got all my bank statements showing ALL nine payments in nine months and emailed it to the ombudsman. Did they really think they would get away with that lie?

 

So, since they admitted to me being in a rehabilitation program and admitted they would have been willing to transfer the account back to the DOE, it should happen now.

[Doward]

I haven't had a chance to call anyone yet - been busy, to say the least.

 

I'll be calling HOPEFULLY this Monday, if I actually get my day off this week!

[Doward]

Ok, so literally MONTHS later I think I'm making headway.

 

CBE Group has agreed to rehab my student loans @ $150/month, starting October 17th. They want me to set up a checking account or credit card to be billed $150/month for 9 months to rehab my loans.

 

They are requesting I set up this payment arrangement BEFORE they send me paperwork (this is where I'm leery). I expressed concern regarding setting up payment arrangements before having this agreed to in writing, and they are saying they will send me the paperwork regarding Loan Rehab from DOE after making that first payment.

 

Any input?

[Doward]

LynnInMN, if you don't mind me asking, I'm curious -

 

The CBE Group holding my student loans is willing to do $150/month for my $30k loans, and I can reasonably afford that. They can do this either via ACH (Checking account) or a credit card.

 

I've just paid off my credit card ($1500 limit) so absolute worst case scenario, I can pay the rehab amount in question (9 x $150 = $1350), but I am worried about CBE actually sending me the agreement they said they would.

 

Would my credit card statements be valid enough proof if I end up having to fight that I'm rehabbing my loan?

[Doward]

Just signed up! $150/month coming out on the 17th of each month.

 

Everything described to me sounds 100% like the federal student rehab system, they said the DOE would be sending me a packet welcoming me to rehab and what not.

 

Overall, I feel really good about this. I do have the conversation recorded between us to 100% verify everything was as it should be. The gentleman even told me straight up "you can Google Student Loan Federal Rehab if you have more questions about the program"

 

I think this will be money *very* well spent, as I can get on IBR after my loans are rehabbed. I have loans almost 9 years old, so I'm also excited to see what kind of help it does to my credit reports (I'm hovering around 600 right now)

[New2repair]

Just signed up! $150/month coming out on the 17th of each month.

 

Everything described to me sounds 100% like the federal student rehab system, they said the DOE would be sending me a packet welcoming me to rehab and what not.

 

Overall, I feel really good about this. I do have the conversation recorded between us to 100% verify everything was as it should be. The gentleman even told me straight up "you can Google Student Loan Federal Rehab if you have more questions about the program"

 

I think this will be money *very* well spent, as I can get on IBR after my loans are rehabbed. I have loans almost 9 years old, so I'm also excited to see what kind of help it does to my credit reports (I'm hovering around 600 right now)

 

Have you inquired what happens to your monthly payment after the 9 months? Do you have an estimate of what you will pay with IBR? With the IBR, what happens if you ever get a good paying job? The interest will be continuing to accrue. With the $150 per month payment, you are probably just barely covering interest. If you intend to pay less, interest will continue to acrue, yes?

[Doward]

After 9 months, everything on my record becomes clean, and I submit my income at that time with my expenses and will start on the IBR plan.

 

I work in Public Service (have for the past 3 years), so if I stay at it, I'll be eligible for the 20 year loan forgiveness policy.

 

Besides, I hope to finish my degree at some point in the next couple of years. My IBR rate will probably be $50/month or under (I make ~$20k/year currently). Even if the interest does accrue, should I finally land a job making 40-60k/year, or once my wife goes to work after my little one heads into school, I'll be able to make higher payments at that time.

 

That's not even counting that with the higher interest rates I'm forced to pay currently, due to that student loan dragging my credit score into the ground. The money I save with lower rates will directly benefit me by letting me put that extra savings to work.

 

I'm a fighter. Even though the economy hurt so many people in 2008 up to now, I've consistently done better for myself and my family, every year, and I intend to keep on improving!

 

Just signed up! $150/month coming out on the 17th of each month.

 

Everything described to me sounds 100% like the federal student rehab system, they said the DOE would be sending me a packet welcoming me to rehab and what not.

 

Overall, I feel really good about this. I do have the conversation recorded between us to 100% verify everything was as it should be. The gentleman even told me straight up "you can Google Student Loan Federal Rehab if you have more questions about the program"

 

I think this will be money *very* well spent, as I can get on IBR after my loans are rehabbed. I have loans almost 9 years old, so I'm also excited to see what kind of help it does to my credit reports (I'm hovering around 600 right now)

 

Have you inquired what happens to your monthly payment after the 9 months? Do you have an estimate of what you will pay with IBR? With the IBR, what happens if you ever get a good paying job? The interest will be continuing to accrue. With the $150 per month payment, you are probably just barely covering interest. If you intend to pay less, interest will continue to acrue, yes?

Edited October 11, 2012 by Doward

[Doward]

First payment came out as expected - I'll report back here in 9 months, let everyone know how this goes!