Hi: My loans are in default with the Dept. of Ed and have been sent to the CA. When I called the DOE Debt Collection to see who is holding my loans, they said the CA has collection rights and deal with them. Ok, so, when the CA said I could rehab, the Dept. of Ed person said the CA's rights mean it can approve a rehabilitation program. Is this true? I was under the impression the CA is just a conduit and the Dept. of Ed must approve the payment plan. If this is true, it sounds like I should just deal with the CA [despite the conventional wisdom that says not to]. Any rehab experience with CA vs. Dept of Ed? Thanks.

In the case of rehab, you will only be able to deal with the CA, not the DOE. And that is perfectly acceptable in this instance. Typically, we suggest that you not deal with a CA for the average debt, but a SL is not an average debt. They can and will validate, and they will not goof off. Take it seriously.

Your first step should be to contact the CA at a time when you are prepared and able to discuss the problem rationally and without emotion. Don't let the CA rile you up - it IS their job to collect the debt you owe. Be sure to read up here on rehab and learn all you can before you make that call. I would suggest you read here for information as well.

If you have questions, please let us know!

Going back to your earlier posts...if you have previously defaulted on a rehab you cannot rehab again. Sure the CA may set you up on rehab payments, but once the time comes for the rehab to be funded you will be denied.