What if you can't even afford to rehab your loan?

[Emanze]

Hi there,

 

I was referred to this board by another money board so I am hoping someone might be able to help.

 

In the late 80's I took out a large student loan - $10,000. Well, I have never made much money and through a combination of being poor and desperate, I got in over my head and couldn't pay my loan along with all my other bills.

 

Thankfully, the last few years I finally worked out payment plans with credit card companies and my other student loans. Finally (!) things seems to be smoothing over and I felt thrilled that I could try to make good on all my debts.

 

Until yesterday. A very angry creditor called about my student loan. Come to find out that all my loans were not consolidated afterall. The government loan (the $10,000 one) refused to consolidated with the others and actually sent the money back to SallieMae. I was shocked.

 

So here's my problem. They are now demanding $1200 down and $255 a month for a year to go into rehab. They said it is the best they could do for me, period.

 

Honestly, if I could pay that, I would. I told them that if

I was extremely tight with my budget I could give them $50 a month, perhaps $100. He, literally, laughed at that, calling it "utterly, utterly unacceptable."

 

Now he is saying that one way or the other they are going to get the money. They will sue me, take my car, garnish my wages, take all my taxes, etc....

 

I'm at such a loss. I was just barely hanging on as it was, trying to pay off all my other lenders and felt good of the progress I had made. But now everything has collapsed on me.

 

Because if they garnish my wages, it will destroy all the other payment plans I have. If they take my car, I won't be able to go to work. He also said I can't file bankruptcy..that the money is never forgiven. He just kept saying that they will get their money, "one way or the other." Then he hung up on me!

 

What on earth do you do when you have run out of options??? Before you say it, I already work two jobs. The only asset I have to my name is a car worth about $3000.00. I might have someone I could borrow the $1200 for the downpayment but then I wouldn't be able to pay them back! (Not to mention that I have no idea if I could even pay the $255 monthly that they are demanding).

 

I'm beyond desperate here. If you have any advice, I would truly appreciate it.

 

Thank you much,

Jackie

[LynnInMN]

Under rehab guidelines you do not have to make a down payment. You are also entitled to "reasonable and affordable" payments.

 

This is from the Dept of Ed site...

"All guaranty agencies and the U.S. Department of Education (ED) will accept regular monthly payments that are both reasonable to the agency and affordable to you. You should call us at 1-800-621-3115 and one of customer service representatives will assist you with determining a repayment amount that is right for you. "

 

These are federal regs. Who is the loan holder. Which agency is calling you?? A) they should not be talking to you in an angry tone, and they cannot take your car. Yes they can garnish you and take your taxes.

 

My advise is that you call the loan holder. (Hopefully it is the department of ed. Collection agencies and the individual collectors are graded on complaints on department of ed contracts) Find out who the agency and loan holders are and I can help you more from there.

[snowpuppy]

It sounds like you did a consolidation at one time but this loan was not included? Do you have the docs from your original consolidation to see what loans were to be included? If you don't have the docs, try the servicer who did your consolidation to see if you can get a copy.

 

You can log onto the National Student Loan Database site to see who holds this loan. www.NSLDS.ed.gov You need to get a PIN number which can be emailed to you within 72 hours. Get your info first before making a call.

 

If you feel you are being harassed by all means complain to the Ombudsman's Office at the US Dept of Education. You don't need to listen to a ca fruitcake.

1-877-557-2575.

[nibanike]

The student loan CA I've been dealing with has lied through their teeth and continues to call even after various limited C&D letters. Call the Ombudsman's office and ask to have a case file opened. It will take less than 2 weeks for it to be assigned. Do you know the name of the collection agency?

[LynnInMN]

Why is everyone wasting time dealing with the Ombudsmans office when there are clear FDCPA violation?? The Ombudsman simply writes letters back and forth and a hand might get slapped. (Although doubtfully...do you know how many letters I had to answer to during my collection management day? We would send a response and that would be it!!) Get an attorney and sue!! $1000 per FDCPA violation!!!

[ashesid]

Emanze,

Don't give them the downpayment!!!

I had two student loans.One is currently paid on time etc... At one point they had someone elses direct deposit paying my account!!! Still don't know where my money went. When I called them to straighten it out the troubles started. They messed up the two accounts and bills and I missed two payments from that mess. I also receive very nasty and threatening phone called saying the same thngs they said to you!!!!

I told them to just fix the payments and I would pay the normal monthly payment. He continued to be beligerant on the phone. I hung up got a lawyer and that was over 3 years ago. My lawyer has even spoken to their lawyer and still nowhere is the end in sight. Stick to your guns and don't let them mess up your plans...

Good Luck

[Emanze]

Under rehab guidelines you do not have to make a down payment.  You are also entitled to "reasonable and affordable" payments.

 

I can't tell you what a relief it is to read that. That's all I want, really. That everyone is treated fairly.

 

These are federal regs. Who is the loan holder. Which agency is calling you??  A) they should not be talking to you in an angry tone, and they cannot take your car.  Yes they can garnish you and take your taxes.

 

I wish I had the information in front of me but the loan holder is the government. And, unfortunately, I don't know who called me. When I tried to call the govt office they said they referred my account to collections and I should call them. So I suppose it was a collection office of some sort.

 

 

TOday I took a phone call from someone who had a "court ordered garnishment" against my wages. I am a receptionist and they didn't know they were speaking to me! I just referred them on to our payroll.

 

So, obviously, they are pursuing that. I'm just at a loss at what to do and can't understand why they didn't accept the money from SallieMae when I consilidated my loans.

 

I'm still reading through all the replies here...it's so wonderful to have all this information.

 

Thanks much,

 

Jackie

[Emanze]

It sounds like you did a consolidation at one time but this loan was not included?  Do you have the docs from your original consolidation to see what loans were to be included?  If you don't have the docs, try the servicer who did your consolidation to see if you can get a copy.

 

Yes, that's exactly what happened. Last year I tried to consilidate all my loans under SallieMae. Everyone agreed but this government loan. They rejected the check! Why, I have no idea. But I confirmed this information with SallieMae.

 

You can log onto the National Student Loan Database site to see who holds this loan.  www.NSLDS.ed.gov  You need to get a PIN number which can be emailed to you within 72 hours.  Get your info first before making a call.

 

I shall do this. Thank you much.

[Emanze]

The student loan CA I've been dealing with has lied through their teeth and continues to call even after various limited C&D letters.  Call the Ombudsman's office and ask to have a case file opened.  It will take less than 2 weeks for it to be assigned.  Do you know the name of the collection agency?

<{POST_SNAPBACK}>

 

I wonder if it is too late to go through an Ombudsman since they are going to garnish my wages now???

 

Unfortunately, I did not get the name of the collection agency because they hung up on me before I could get any information from them.

 

Today I got the number and name of whoever is doing the garnishment but I don't know if I should really call them back or not. He sounded very friendly but, then again, he didn't know it was me he was talking too.

[LynnInMN]

Emanze.....

 

Do you not have the name of the collection agency or a phone number??? Are you receiving correspondance from them. You should have received pre administrative wage garnishment paperwork from them, allowing you to appeal. Also, the CA violated the law by telling you(even they didnt know it was you)that they have a court ordered garnishment....email me at Lynninmn@aol.com

 

I just read your other post...

Edited January 6, 2005 by LynnInMN

[LynnInMN]

You do not have time to deal with the Ombudsman. If this is a Department of Education collection agency, you need to be talking to the DOE ASAP. I am looking for numbers....

[LynnInMN]

This is a listing of all of the Department of Ed agencies....is it one of these???

 

<<Collection agency employees are trained to comply with the terms of the Fair Debt Collection Practices Act which governs collection practices by debt collectors. When Debt Collection Service is notified in writing of complaints concerning our collection agencies, we review the evidence and take the necessary action to correct the situation.

 

 

Aman Collection Service

P. O. Box 1149

Aberdeen, SD 57402-1149

(800) 874-8969 Maximus

P.O. Box 877

Grand Rapids, MI

49588-9877

(800) 863-9025

Diversified Collection Services

P. O. Box 2049

Castro Valley, CA 94556-0049

(888) 335-6267

Account Control Technology

P.O. Box 8026

Canoga Park, CA 91309-8026

Collections: (866) 887-2880

Financial Asset Management Systems

P. O. Box 81401

Atlanta, GA 30341

(888) 668-6920 Progessive Financial Services

P.O. Box 24098

Tempe, AZ 85282

800-253-8167

NCO Group

P.O. Box 41420

Philadelphia, PA 19101-1420

(888) 475-6741 Allied Interstate Credit Corp, Inc.

P. O. Box 813220

Smyrna, GA 30081

(800) 464-2076

Nationwide Credit

P.O. Box 290276

Nashville, TN 37075

(866) 381-5530 Education Credit Services

PO Box 7807

Fredericksburg, VA 22404

(800) 862-2843

Pioneer Credit Recovery

P.O. Box 128

Arcade, NY 14009

(877) 907-1866 National Asset Management Enterprises

PO Box 725109

Atlanta, GA 31139

(800) 470-4720

Van Ru Credit Corp

P.O. Box 1027

Skokie, IL 60076-8027

(888) 337-8331 >>

[Emanze]

This is a listing of all of the Department of Ed agencies....is it one of these???

 

NCO Group

P.O. Box 41420

Philadelphia, PA 19101-1420

(

<{POST_SNAPBACK}>

 

Bingo! This is the one. Except the address I have is,

 

NCO Financial Systems, Inc.

in Tuscon, Arizona

 

Hmm, at least now I know who these people are.

[kamper]

http://www.ed.gov/offices/OSFAP/DCS/index.html

 

I did not read this thread, so sorry if this is a repeat. You don't have to put up with nasty collectors. Read the above link. Also, if the collector will not work with you, you can request an omnibudman (spell) There is more than one way to get this done, and it can be worked out within your budget.

Edited January 11, 2005 by kamper

[nycredit]

This is a listing of all of the Department of Ed agencies....is it one of these???

 

NCO Group

P.O. Box 41420

Philadelphia, PA 19101-1420

(

<{POST_SNAPBACK}>

 

Bingo! This is the one. Except the address I have is,

 

NCO Financial Systems, Inc.

in Tuscon, Arizona

 

Hmm, at least now I know who these people are.

<{POST_SNAPBACK}>

 

Yeah, I know NCO well. They are scumbags of the Nth degree...

 

NCO Group, Inc. (NASDAQ: NCOG)

507 Prudential Rd.

Horsham, PA 19044 (Map)

Phone: 215-441-3000

Fax: 215-441-3929

Toll Free: 800-220-2274

 

They have been reporting incorrect information to Equifax for well over a year on my account that has been closed since 2003.

[Emanze]

 

Yeah, I know NCO well. They are scumbags of the Nth degree...

 

NCO Group, Inc. (NASDAQ: NCOG)

507 Prudential Rd.

Horsham, PA 19044 (Map)

Phone: 215-441-3000

Fax: 215-441-3929

Toll Free: 800-220-2274

 

They have been reporting incorrect information to Equifax for well over a year on my account that has been closed since 2003.

<{POST_SNAPBACK}>

 

How horrendous. I'm not surprised after speaking to them, though. The collector I dealt with was borderline abusive.

[Emanze]

http://www.ed.gov/offices/OSFAP/DCS/index.html

 

I did not read this thread, so sorry if this is a repeat.  You don't have to put up with nasty collectors.  Read the above link.  Also, if the collector will not work with you, you can request an omnibudman (spell) There is more than one way to get this done, and it can be worked out within your budget.

<{POST_SNAPBACK}>

 

Hi Kamper,

 

Thank you, first of all, for the link. I found it very informative.

 

You were right...they will work within your budget. Today they called me yet again and I actually got someone who was nice. And reasonable! He agreed to waive all the late fee's and penalties and lowered the monthly payment to an amount that was just $15 over what I requested. That means they went down $150 from what they were originally requesting!

 

I'm quite happy to have been able to find a resonable solution. Last week I got the worst collector I have ever dealt with in my life and today I got the best one. Same agency, just different people. Weird.

 

Thanks again for your support. That goes to everyone who might be reading this.

 

Warm wishes!