Finishing up Rehab - can we renegotiate payments?

[snoopy212]

My H previously defaulted on his student loans. After we got married, I wanted to get him on a payment plan, so we went into rehab. I offered to pay $1K/mo for 12 mos, but now with a change in h's pay, we can't really afford to pay that much. october is our 12th month, and we can do it in october, but after that, i'd really like to renegotiate to pay a smaller amount each month.

 

Will I be able to renegotiate with whatever lender they send us to?

 

Thanks

[pt0872]

The new SL company that purchases the loans will be able to set up a new payment for you.

 

Ive spoken with DofE about this a number of times, especially since my wife and I cannot continue to make the same payments after I get out of rehab.

 

Depending on whats left on the loan, the monthly payment should come down quite alot.

 

Just dont miss the october payment or you'll start all over again.

[ziggypop]

I just finished rehab last month and when I consolidated my loans, the payments are now less than 1/2 of what they were in rehab. I also ended up getting to skip paying anything in September (the last payment was Aug. 19, it got consolidated on Aug. 31, and the first payment isn't due until Oct. 10).

 

I agree with pt -- make very sure that you pay October's payment. But, I do know that some people haven't had my experience with that last month and have had to make another payment to the CA (or whoever you're doing the rehab with) in the month after the rehab is done before the loan is sold. Talk to your current servicer (whoever you're paying the rehab to), though, right after that October payment. That way you can make sure to know what's going to happen right after that. If you are going to have some lag time before it gets sold/consolidated, you should be able to negotiate a lower payment at least for that month since your circumstances have changed. My CA sent me the consolidation paperwork about 4 weeks before my last payment so that it in their offices before I even made that last payment. I think that's why I had the good experience I did. You might consider calling the servicer now and seeing what your options will be -- you might be able to get the process going now and get a head start.

 

Good luck and congratulations with finishing rehab!

[Cheech]

But, I do know that some people haven't had my experience with that last month and have had to make another payment to the CA (or whoever you're doing the rehab with) in the month after the rehab is done before the loan is sold.

 

Hahaha... yeah that would be me... lol. Ziggy is right - stay on top of them and make sure that your loan gets picked up by the new lender in a timely manner. You can choose several repayment programs after rehab, or you can consolidate. The amount of your payment after rehab will depend on the loan amount you're paying off, your interest rate, and your repayment period.