Long story, so bear with me.
Several years ago I was stupid and got into trouble because of a divorce and no job. I defaulted on a few loans. (Wish I knew then what I know now!I pretty much ignored the problem---bad choice, I know.) Anyhow, I completed rehab in Feb. of this year., or so I thought. On Feb. 26th I wrote a letter to the agency, Windham Associates, asking about the rehab...you know, general stuff, like I completed 12 on time payments, so I assume loan is now rehabbed, please confirm. They never answered the letter, so I kind of just assumed things were okay. They continued to debit my bank account for several more months. I received a letter dated May 20th telling me that I needed to send a check (The payment was due May 15th!)because my authorization for debiting my account had expired. The guy in the letter also said my accont was referred to him because I had questions about my account. I sent the check in that very day, but of course it was already late. I also wrote another letter, asking them to confirm that my loans were marked rehabilitated, and asking how much the new payment would be, since in his letter the guy said the payment would go up app. 35 dollars. Fine, I understad that, but I can't pay "approximately" 35 dollars. I need to know the exact amount to pay. I did not receive an answer to this letter, either. (I sent it May 22nd.)In the meantime, I have yet to make a June payment because I do not know how much to pay, or even to whom it should go. Since as far as i knew, my loans were rehabilitated, I completed paperwork to consolidate these two loans, which were mine, with a PLUS loan I had taken for my daughter, and which I have always paid--it was not included in the rehab. After I did that, I got a little nervous and pulled my credit report, even though as I understand it , consolidation is not based on credit. i just wanted to be sure my loans were marked as rehabilitated. Big surprise!!!!! There was a listing that my two loans had been placed in collections by my state guaranty agency as of June!!! I am upset and confused. No one from the state ever contacted me. It appears maybe I was supposed to be paying them???? I have no clue what is going on. I worked so hard to clear this mess up and now the loans are in collection????? By the way, i never heard one word from the state agency....no payment book, no letter, no late notices....nothing. Ditto for windham. In addition, one of their reps told me a flat out lie. She said she pulled my credit reports. I puuled all three of them a month after she told me this last year, and Windham had not pulled one of them. My question now is, where do I go from here? I wrote Windham again, and also the state guaranty agency. Basically I told the state I had no idea what was going on, but that I want to and intend to pay my loans. Windham I was a little more forceful with, as in what the beep is going on here, and if i do not receive a written reply in a week, I will be reporting them to the federal regulatory agencies. Is there something else I need to do? Help please!!! I am heartbroken over this. Thanks

You can never assume that a rehab is completed until you get the new loan holder welcome letter with payment amount and mailing information. It never stays with the CA..it is re-insured and a loan servicer picks it up as a new loan. Due to the time sensitivity of payments on this program, this is one time that you probably should not have written but called the CA to find out what the status was.

There is a possiblity that you may be ok. There is a "15 day window" clause written into the rehab manual. However you need to call Windham tomorrow and get a payment posted ASAP. Some guarantey agencies will allow a technical missed monthly payment if you hit that 15 day window at the beginning of the following calender month. They should be able to do a check over the phone with you.

As the your CA, you have been in collections the whole time you have been with Windham and probably before. This is standard for state guarantey agency reporting. Because you are in default, the reporting is always negative. They do not have to notify you.

Working out rehab on a student loan is the ONE TIME I advocate using the phone. What most folks don't really understand is that dealing with these state guaranty agencies are not like dealing with your typical scumbag CAs. They have rules they have to follow, and they most often will do so, but you have to play by the rules too.

Lynn is right; you really need to call the guaranty agency tomorrow and talk to a human. The letter you sent probably won't reach them in time and you need answers now. After spending a year in rehab, the worst thing that can happen to you now is to drop the ball.

Ziggypop was so adament with me that I need to be very careful at the end of my 12 month period for rehab because that's when most people get into trouble. Even if you haven't heard from the CA/guaranty agency, you need to continue to make payments until your loan is picked up.

All I can offer you right now is moral support. Lynn gave you good advice and I hope that you will follow it. Your best bet is to call the guaranty agency tomorrow and hash it out over the phone. If that leaves you a little cold, follow up with a faxed letter to the person you speak with as a CYA, detailing the conversation.

Good luck and let us know how it works out for you.