Well, after I had requested rehabilitation for my defaulted SL's...I was told I would have to pay the first payment right then and there over the phone (even though wasn't due until 8/29). I posted about it here. It was Pioneer Credit Recovery.

Well, I emailed the Ombudsman's office the following day. I know they received it because I received the following response:



Well, still no word. It says someone will contact me within two business days. I received that email on the 16th. Now it's been over a week.

Then, today I received a voice mail on my phone from ERS. The man left a phone number 1-800-377-1904. After searching on the internet, I found that this place handles educational loans. I wonder if my loans that are with Pioneer are being turned over to them?

I hope so because I can not stand Pioneer people..but hey..I can't stand CA's period!

If that is the case, I will not talk to them on the phone. I will wait and receive a letter from them and make sure they have my loans and then I will mail them CMRRR requesting information regarding rehabilitation and explain my situation ...not working, etc.

ERS is another collection agency that handles student loans.

Yeah, I figured out that much. I was just wondering possibly why I haven't heard from the Ombudsman's office after over a week.

I'm wondering if my loans that were w/ Pioneer are now being handled by ERS.

Still no word from Ombudsman's office. Even though the email confirmation said not to reply to it (but also said I would be contacted w/in 2 days), I replied to it anyway instead of using the online form again. I let them know that I still haven't heard from them. That was about a week ago and still no word.

You will not get a response from an email address that isn't monitored (that one is not, which is why it says not to reply to it). You need to pick up the phone and call the ombudsman's office.

Also, as has been mentioned repeatedly, you will get NOWHERE in rectifying your SLs if you insist on doing things by mail. This is the one instance where using the phone is ok, and you should use it because otherwise you're just digging a hole deeper.

I know that last time you spoke with Pioneer, you were blindsided. You need to read here and other places on the internet to find out what rights you have when it comes to defaulted SLs. Don't pick up the phone when a CA calls you; wait until you are ready to talk to them, have notes available to refer to, and are mentally prepared to deal with their scare tactics, then call them yourself. If you pick up the phone when they call you, you're automatically on the defensive. If you wait and call them when you're ready, you are in a better position to negotiate.

Please, do your homework on this. If you need help finding the information, let me know. I'll be happy to assist you in any way I can.

But why is this?! I mean...these people think they are more almighty than God and I just feel more comfortable doing things by mail. Also, I WILL NOT be paying with automatic w/d or automatic payment whatsoever...not even by check. I will only be paying by money order.

If I can't rehab, then I guess I can't rehab and I guess I'll have to go back to my original plan of paying them whatever I see fit to pay them on a SPECIFIC ACCOUNT NUMBER and no matter what they say, it BETTER be applied to whatever account number I specify.

I can not stand these people's attitude. It's not like I knowingly took out these loans knowing I wouldn't be able to pay them. I had no idea that I wasn't going to finish school at the time. Heck, I had no idea that payments would be more than $50/mth because that's what my naive 18/19 yr old self thought because that's what I was told. I had no idea that I should not ask for max each time on these loans as I was urged to do by a financial aid person.

I hate to tell them, they are NOT God and they can get a lot more payments if they'll cool down on their abusive attitude! It's like they love holding it over your head that you're screwed for life if you don't pay on THEIR terms. Well, I hate it! I'm paying on MY terms whether they like it or not.

Oh well..I'm SICK and tired of worrying about these SL's. I do not like talking on the phone. I will send Ombudsman's office a letter I guess.

I can tell you that it may take time but the Omsbudman office will get back to you. Earlier I was on verge of default and filled out the form for the Omsbudman office. It took about 10 days but I did get called. They got the SL co to admit I did still have forbearance which Sallie Mae had been telling me I didn't have any left (lying to me). The had to process my forbearnace and I am making the regular payments just fine, just had a time period when I couldn't.

Technically they are not being abusive. They are simply enforcing the contract that you signed. The note actually states that you agree to pay the account in full if you default. You agreed to their terms. Nowhere on the contract that you signed does it state "I have the option to pay by MY terms." You have made lifestyle choices. Repeating over and over that you didnt understand what you signed holds no water. It wouldnt matter if you were 15 or 55...you signed notes that state "I have read and understand the terms of this note." The collectors are simply doing their job.

I'm not EVEN gonna get started...

Bottom line...they ARE being abusive and it's against the law for them just like other CA's to be abusive as they have been to me.

Best of luck to them getting the PAYMENT IN FULL on my approximate 50K defaulted loans is all I can say.

Well, I finally spoke to a nice gentleman from the Ombudsman's office. He had left me a message the other day. I had called him back and he wasn't in and I left him a message. He called back today and apologized as he had been out of the office.

I told him about my whole ordeal w/ Pioneer. He asked for names of the people I spoke with and I gave him the names.

We talked about my situation. He told me that rehab might not be for me, but that it was my choice if I wanted to do that. He just wanted to make me aware of the continued costs of interests, etc. and how it's a 9-yr plan. He let me know that even that payment that was offered to me from Pioneer, which I can't even afford, how it would leave such a significant balance and how I possibly may not be able to pay it off w/in the 9 years. He let me know how I would just put myself into this bind again -- they would be defaulted yet again -- just something for me to consider.

We talked about consolidation. I told him about how I've tried that before and to do the income contigent payment plan -- how my DH refused to sign anything regarding IRS because he wants no part of it. I told him how this was incurred before we were ever married and how I don't blame DH for not wanting any part of it. I told him that DH will agree to help me pay as much as we can possibly afford toward this, but does not want things such as tax offset, garnishment, etc. -- no responsibility of the loan whatsoever.

He was very understanding to the situation. I asked him exactly what can happen and he said that they know they can't "get blood from a turnip". He mentioned things such as tax offset, wage garnishment, etc., to which he knew doesn't apply to me as I don't work and therefore don't file taxes. He did mention that in the future if this remains unpaid how if I qualify for SS or such that it could be offset. He mentioned that the CA's use the tactics that they were contracted for, which is why they try to work w/ people before it ever goes to CA.

I asked him exactly what could happen in cases such as mine and it's left unpaid. I asked him about judgements, etc. Do they even bother in situations like that? He said that they do have a department that sues and gets judgements but he's not sure exactly what criteria they go by. He asked how old the loans are and I replied around 94-97 and he said, "Well, they haven't come after you yet, so..." In other words, never know if you're going to get sued or not.

I mentioned how I assumed I would never be able to have anything in my name. He said they don't do liens against property. ??????? I mentioned how I'm doomed and how even if I went to get a job that my wages would be garnished and how embarrassing that would be w/ a new employer to get the paperwork about wage garnishment when you've just started working there. He asked, "If you were to get a job tomorrow, how are we going to know?" I told him, "I'm sure ya'll have databases like that that shows up." He then went on to tell me how it doesn't work like that and that I better be glad that it doesn't.

I mentioned things such as FEMA, etc. He said he wasn't aware of that being affected, but wasn't positive. He mentioned that that information is not shared and such like that.

I told him how I really want to improve my credit and he again said that the rehab is the fastest way to do that, but again mentioned that I probably can't afford that -- how easily it would be to just get myself right back into this situation again.

He told me he would send me a financial statement and said that he understands this will have a bunch of "0's" because of no income and all. He asked what I proposed I could pay on this. I told him about $100 -- didn't want to commit to an amount that I couldn't guarantee. He told me to fill out the financial statement and put that I propose I'll pay $100/mth. He said that I can send it back to him directly and that he will personally deal w/ discussing it w/ Pioneer and whatever they decide (agree or deny), he will have to respect.

He told me that how after it has been w/ a certain CA for awhile, it will then go back to them before it goes to a different CA. He said that if Pioneer rejects/denies my proposal, it will go back to them. He said that I would get the opportunity again at that time to make a proposal to them and they would either agree or reject it. If rejected, it would then go to another CA and I would get the opportunity yet again...etc.

I asked him about if I did not rehab nor consolidate -- if I just started making payments how I would have to start with the lowest balance and asked if I could put that particular account number on the payment to be applied to that particular loan. He told me YES -- It can be applied to whichever loan I wanted it to be applied to but I'd have to be sure to specify an account number. I told him how in a case like that, how I have 10 loans, I understand how the other 9 would just sit there in that default status.

He told me how my loans are accruing daily interest of a little over $5.00 per day for all of the loans. So he told me how if I paid, say $25 per month...that would be offset by the interest and how none would go toward principal and therefore I would never pay it off so that I would just be wasting that little bit of money that I have. He said.."If you can't pay, you can't pay -- no sense in paying it when the balance isn't coming down".

Oh well, I feel better after talking to him. I let him know how I absolutely hate it that it has went this far and how there's no one to blame but myself. I told him how if I had it to do over again how I would have never ever taken out the loans, etc.

I just can't believe how understanding he was. He told me I don't even have to deal w/ Pioneer as far as talking to them. He would send me that financial statement out, I'd send it back to him. He would forward it and discuss it w/ Pioneer and we'll go from there whether they reject or agree to my proposal. I asked him if I was ever able to do a settlement amount on these accounts, could I and he said yes, that they will settle it out.

I told him it would be great if there was some sort of program to stop the interest when someone is trying to make an effort and he agreed but said that is what I signed on the promissory note and I agreed again that I got myself into this mess.

Oh well, all I can do is go from here and see what happens. Now I guess I've changed my mind about sending them whatever payments. If they agree to a payment plan, they'll get paid. If they don't, then I'll try again when it gets passed around. Until a repayment amount is reached, I won't be making any payments on it because there wouldn't even be a point to it if I can't make a substantial payment because of the daily interest.

Anyway, talking to him was like taking a BIG breath of fresh air in comparison to the CA. I will NEVER talk to Pioneer again. If they agree on a payment with me, I'll send a payment in each month, but that will be the only correspondence at all w/ them.