Question about Rehab please.

[NEMommy]

This board has been very helpful......I didnt realize it was my right to enter a rehab agreement with the CA..........my loan just go turned over to a new CA.........the last one did not offer me rehab and said the only payment they would take is $1000 per month!! which obviously i couldnt pay. I didnt know the info i know now from this board. So..........now I havent contacted the new CA yet.......should I contact them by phone to request the rehab? Do I get to decide what is a reasonable payment? I am a SAHM right now.........do I have to divulge my husbands personal financial information? He doesnt want me to tell them any of his information.

My loan was originally $5000........now with the fees its $12000.......I can squeeze out $50 from our budget for this. Our budget is squeezed to the max right now!

thanks

[ziggypop]

I don't know about having to provide your spouse's financial information (I don't have one, so it wasn't an issue for me!!), but you should certainly be able to get a payment amount well under $1000/month. First of all, I don't think that the point of rehab is that you need to have a payment amount that will pay off the entire loan within a year! Also, after fees and everything, my entire loan amount was over $90,000 and I paid way less than $1000/month for rehab -- and I'm not a SAHM. I did have to fill out some financial information form, but it was just a formality because they'd already accepted my payment offer.

 

Just stick to your guns and you should be fine. I do have a friend in a situation similar to yours (SAHM with loans in default) and I'm pretty sure that she only paid $50/month.

 

Good luck!!

[wokscott]

From my experience they want you to pay 1% of the balance each month unless you go the income contingent route and they find that $50 is "affordable and reasonable" per the Higher Education Act. If you do go this route just play it like you're not married and they probably won't know the difference. Read this:

http://a257.g.akamaitech.net/7/257/2422/08...4cfr682.405.htm