What happens after rehab? After reading alot it appears that the fees charged for collections are capitalized into the loan amount and when the loan is sent to ?a new lender ? just back to Sallie Mae? Who "Funds" the new loan. Is it really a new loan or just the old loan with a new principle?

If you don't consolidate and default again will this be considered defaulting on a new loan and once again be subjected to the 18.5% collection fees or just a second default on the first loan and be subjected to just accelerated interest?

And I pretty much understand the credit reporting ramifications regarding what comes off after rehab but does anyone know how the loan shows up on the NSLDS after rehab?

I just realized I may be royally screwed and not realize it, help please...


Thanks again

Lynn, thanks for the reply.

My situation is going to require a little explanation: Started paying on Student loans in 1998. Ran into some financial difficulties relating to being out of work, missed a few payments, account went to Pioneer. Was contacted by Pioneer in March 2003 regarding outstanding payments. I wanted to get back in repayment status so I set up the payment plan he offered $50.00 and 150.00 per month for 12 months directly out of checking then would go back to Sallie Mae. OK sounds like rehab right?

My first few posts from my checking accout post as "USA Funds - Rehab." However in July of 2003 - my 4th payment on this new plan goes from posting as "USA Funds - Rehab" to just post as check #6 and the amount changed to 200.00. So I called Sallie Mae and the customer service gal looked into it and I remember her saying there was some kind of problem with the way Pioneer handled things and they were ...... and I remeber her clearly saying "Recalling the loan back to Sallie Mae" and the payments would continue as 150.00 out of my checking acount. I even received a credit of $50.00 back the next montyh All the remaining posts were as check # 7 , #8 etc

I didn't question the situation, was just happy to be continuing making payments. Didn't know enough about rehab etc to ask questions. So my 12th payment was March 2004. I just assumed since the loan was called back to Sallie mae the payments would continue. Apparently they didn't and I didn't notice right away. In June they contacted me that I was once again late. At this time I had just had a baby and was still recovering from being out of work longer than expected. I applied for and was given a 1 year forebearance back to March so the new payments were supposed to start in March of 2005.

In March of 2005 I was in contact with Sallie Mae again, don't remember who called who, about the payments starting up again. They did a one time electronic transfer for that month and sent me the Auto debit payment form which I mailed back right away. I was expecting the payment to come out April 23.

My credit union billing cycle ends the 25th so I wasn't too worried when it didn't show up on April, I thought it would show up in May. May came and still no Auto debit....... Called Sallie Mae........No autho for auto Debit.... filled out paperwork again.......

Now to the bad part. On June 25th my mother and son were critically injured in a car accident. To be quite honest most of the next several months were a real blurr and I let the whole SL thing get away from me. I know it was my responsiblity to make sure the payments were made, etc. I really had been trying to keep up with it.

Before the accident I was tetering on the edge with an undidiagnosed post partum depression. The stress of the accident really pushed me into a very dark place I sincerely hope none of you ever ends up in your lifetime. There were days I couldn't face getting up and really didn't care if I lived or died. Thank God for my DH keeping things together while I completely fell apart. And thank God for many coworkers who donated PTO time so I could still get paid for some of the time I was out.

I have just in the last few months, with proper medication, began to feel better..... like I am stepping out of a fog. When I got the notice from Pioneer I did respond right away and with research and the answers from alot of people here I can see the gravity of the situation........and Just in time for the 1 year anniversary of it all!!!


So now I'm in a real bind

1) was the first rehab "Real" rehab?
2) what does it mean when they recall the loan back to Sallie Mae. There was what seemed to be an added fee close to the 22% back then.
3) When it got called back was it still the same loan or a different loan?
4) If they applied the fees to this loan can they apply them again
5) When you complete rehab and a new loan is issued does it show up as a new account number on your credit report

I looked on the NSLDS website and here is what is listed

Loan #1
In School Grace Period 9/5/1995
In repayment 11/30/1998
Defaulted Unresolved - 1/24/2003
In repayment 6/24/2004
Forebearance 6/25/2004
In repayment 3/25/2005
Defaulted, unresolved 5/26/2006

Loan #2 the same except for the take out was 1995

I don't remeber filling out any paperwork other than the auto debit authorizations. No "Rehab " documents.

I pulled credit reports and all thats listed for Sallie mae was one set of loans with 1 set of loan numbers and the opening date when the loans were taken out and a closing date of 10/1999, statuse transferred to another lender ---- well before the first default lists

The next set of loans for Sallie Mae have a different set of numbers and they list as opening again with the same original loan dates but "Claim filed with government"

So as you can see I don't really know what my status is.

Pioneer offered rehab.....so does that mean I really am eligible or just that they don't know about the first supposed "rehab" even though it's with them? If I start the rehab with them and later someone discovers it's a second rehab what happens?

Don't know where to turn......definite migraine!!

Who should I call to get an exact accounting of the loan.....Sallie Mae or USA Funds or CA? I don't want it to seem like a stall tactic but I really do need to see what they have listed and exactly who the payments marked check #6, 7, etc went to.

Totally confused, more than a little sick and dreading the rest of this month!!!!!

Oh....I forgot to ask

For anyone who has successfully rehabbed what does the NSLDS list for your loan after rehab? Does it still say defaulted, unresolved or something like defaulted, rehab complete???

I have seen reference to people missing payment # 13 and having to "Start Over" I understand you are never out of default status until you successfully complete rehab, if you "Start Over" does this consitiute like a second default and you get whacked for another 18%

Can you get to "In repayment" after a "defaulted, unresolved" on your NSLDS without completing rehab?

Trying to make sense of this all.......any help would be appreciated......had planned to call the CA back tomorrow morning but unsure how to proceed.

Thanks