Hi: Just got off the phone with Premierce Credit who is collecting on my defaulted SL. We went round and round about minimum payments...bottom line is they claim that their client (EdFund) will not accept payments less than 1%, so unless I am willing to make the 1% payment then rehab is not an option. My outstanding balance is around $16,500, so minimum payments would be in the $167 range. Given my current income I'm thinking that $50 is closer to what I will actual be able to afford for the next 12 months (actually, they claimed that I needed to make 13 payments). They also claim that because my account is being reviewed for litigation that they cannot accept less than the 1% minimum payment.
Also, because my account is being "reviewed for litigation", should I DV them to halt or slow the process while I try to work thru the Ombudsman office to get lower payments established?
Full Version: EdFund Won't Accept Less Than 1% Payments
QUOTE(creditdog @ Aug 29 2005, 12:31 PM)
Hi: Just got off the phone with Premierce Credit who is collecting on my defaulted SL. We went round and round about minimum payments...bottom line is they claim that their client (EdFund) will not accept payments less than 1%, so unless I am willing to make the 1% payment then rehab is not an option. My outstanding balance is around $16,500, so minimum payments would be in the $167 range. Given my current income I'm thinking that $50 is closer to what I will actual be able to afford for the next 12 months (actually, they claimed that I needed to make 13 payments). They also claim that because my account is being reviewed for litigation that they cannot accept less than the 1% minimum payment.
As an ex EDfund collector, THEY DO NOT LITIGATE! Not at your balance!! They will activily purse admin wage garnishment. They are handing you you a pile of crap! Also was this your first contact with the CA??? When were they assigned the account??
Call back the CA..demand a qualified manager. Go thru the switchboard operator, not the collector. Make sure you get their name. Demand your reasonable and affordable payments authorized under the Higher Education Act.
If that does not help, call EDfund. Provided that you have made attempts and the CA is violating the law, they often will intervene.
Also, this is the rehab page from EDfunds webpage, outlining rehab and reasonable and affordable payments. http://www.edfund.org:/students/studentpar...pay/rehab.html
Also, because my account is being "reviewed for litigation", should I DV them to halt or slow the process while I try to work thru the Ombudsman office to get lower payments established?
Try the above first. Edfund is pretty good a validating quickly...
As an ex EDfund collector, THEY DO NOT LITIGATE! Not at your balance!! They will activily purse admin wage garnishment. They are handing you you a pile of crap! Also was this your first contact with the CA??? When were they assigned the account??
Call back the CA..demand a qualified manager. Go thru the switchboard operator, not the collector. Make sure you get their name. Demand your reasonable and affordable payments authorized under the Higher Education Act.
If that does not help, call EDfund. Provided that you have made attempts and the CA is violating the law, they often will intervene.
Also, this is the rehab page from EDfunds webpage, outlining rehab and reasonable and affordable payments. http://www.edfund.org:/students/studentpar...pay/rehab.html
Also, because my account is being "reviewed for litigation", should I DV them to halt or slow the process while I try to work thru the Ombudsman office to get lower payments established?
Try the above first. Edfund is pretty good a validating quickly...
Thank you Lynn for your response and the helpful link to EdFund.
I just got off the phone with EdFund and they told me that "across the board all payments are a minimum of 1%". Of course, this does not jive with what I've been reading, and certainly does not take into account the "reasonable and affordable" standard that is claimed on their web site. The EdFund rep also told me that they the 1% minimum IS their "income sensitive" repayment option.
Is it possible that my loan it too old? Here's a quick run down:
Stafford Subsidized $4000 1991 (Defaulted 1996)
Stafford Subsidized $4000 1992 (Defaulted 1997)
Total Current Balance: $16,500 (and change).
Tax refund taken in 2001 (approx. $2000).
I got my pin from NSLDS website in Nov. 2004, then received first letter from CA on 8/8/2005. I was preparing to send them a DV letter (so that I could at least have a copy of the promisory note for my records), then decided to call them this morning to set up rehab payments. So, I've only contacted CA once and spoke with 3 people (asked to be transferred to "qualified manager", but I'm not sure that I ever really spoke with one).
After talking with CA, I called EdFund to confirm the 1% minimum payment and they confirmed that this was the absolute minimum that they accept, across the board.
So, at this point....
Do I call CA back and demand "reasonable and affordable" payments?
Are there ever any factors that would prevent payments going lower than 1%, like age of loan?
Should I get the Ombudsman involved at this point?
I just got off the phone with EdFund and they told me that "across the board all payments are a minimum of 1%". Of course, this does not jive with what I've been reading, and certainly does not take into account the "reasonable and affordable" standard that is claimed on their web site. The EdFund rep also told me that they the 1% minimum IS their "income sensitive" repayment option.
Is it possible that my loan it too old? Here's a quick run down:
Stafford Subsidized $4000 1991 (Defaulted 1996)
Stafford Subsidized $4000 1992 (Defaulted 1997)
Total Current Balance: $16,500 (and change).
Tax refund taken in 2001 (approx. $2000).
I got my pin from NSLDS website in Nov. 2004, then received first letter from CA on 8/8/2005. I was preparing to send them a DV letter (so that I could at least have a copy of the promisory note for my records), then decided to call them this morning to set up rehab payments. So, I've only contacted CA once and spoke with 3 people (asked to be transferred to "qualified manager", but I'm not sure that I ever really spoke with one).
After talking with CA, I called EdFund to confirm the 1% minimum payment and they confirmed that this was the absolute minimum that they accept, across the board.
So, at this point....
Do I call CA back and demand "reasonable and affordable" payments?
Are there ever any factors that would prevent payments going lower than 1%, like age of loan?
Should I get the Ombudsman involved at this point?
1% is the standard payment...it is not the income sensitive payment. I would make one more attempt with EDFund...ask for a supervisor. Let them know your next step will be to involve the ombudsman.
Calling EdFund got me no where. EdFund said that they have nothing to do with the decision now that it is in the hands of CA. So, I called CA again and spoke with supervisor who finally agreed to send "hardship" application, but stated that their client (EdFund) may not accept the terms ($50/mo).
So, who is actually making the decision about what payments are acceptable? The CA who has the account now, or EdFund?
The CA repeatedly said that due to the amount and the requirement to repay in tens years, that making payments less than 1% is not likely to be accepted. Hmmm.
So, who is actually making the decision about what payments are acceptable? The CA who has the account now, or EdFund?
The CA repeatedly said that due to the amount and the requirement to repay in tens years, that making payments less than 1% is not likely to be accepted. Hmmm.
Technically the payment should be one that would pay the loan within 10 years. The reasonable and affordable payment arrangement is there for those you are experiencing temporary financial hardship. However, a lot of people consolidate after rehabbing, avoiding the higher pays of rehab. If the question of lower payments comes up again, just tell them you expect to be in a higher income bracket in a year or so. DO NOT tell them if you plan on consolidate.
Payment arrangements are suppose to be "reaonable and affordable" to both parties. The CA can veto your payment plan.
Payment arrangements are suppose to be "reaonable and affordable" to both parties. The CA can veto your payment plan.
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