12 months rehabbing and counting

[thepaddy]

Hello,

 

Perhaps you can help me. My wife has defaulted loans and I made the 12th monthly payment in January. We got a letter from the Dept of Ed from the end of December stating that the 11th payment had been made and if the 12th were made on time the loans would be rehabilitated. All sounds good and I called Dept of Ed for details about what to do for this months payment. She looked up the account and stated that all 12 payments had been received and not to worry about a payment. She said the rehabilitation would be completed after the 7th day for the 13th month. Here's the problem I just got another letter from Diversified Collection Services stating that they're going to draft another check on the 11th. I've placed three calls with the guy handling my wife's account with DCS and he won't return my calls. Funny that he really wanted to talk to me last year when he wanted to get money, especially the $2000 downpayment that was required to start rehabilitation. But that's another story. My question is, what do I do now. If they take this payment on the 11th and then the Dept of ED requires another payment at the end of the month for a 9 year note, we won't be able to cover it. What do I do and who do I talk to?

 

Thanks,

Patrick

[pt0872]

K...I was in rehab with DofE...

 

MAKE THE PAYMENT....you have to in order to stay in rehab. The 13th payment is due because they havent actually sold your loan yet. So your still with the DofE.

 

I only made 12 to DofE and it was sold extremely quick...do you have access to the NSLD (or whatever its called)? That usually shows when the loans have been purchased.

 

Stick with this program....they're not screwing you. When your done with rehab your loans are COMPLETELY fixed...and will show Paid as agreed, never late.

 

Just make the extra payment if you have to.

[LynnInMN]

I agree that the payment should be allowed to go thru. Generally the DOE will close the account with the collection agency shortly after rehabbing. Once closed, they cant run the autopay. If for some reason it doesnt happen, your butt is covered. If your rehab completes but just doesnt show up at the collection agency on time, dont worry! Your payment will be forwarded on.