I just spoke to a representative at Diversified Collection Services. I was told that basically, my rehab payments for the last 12 months only paid collection fees and part of the interest. The Rep told me that after I sign the new agreement, the collection fees will go away and I'll begin to pay down the loan. She couldn't give me that in writing, which is why I don't trust DCS. Also, they sent me a new agreement and the new agreement says that I agree to an increase in payment over the length of the loan but it doesn't give specific percentages.

Two questions:

1. IS THIS ON THE UP AND UP? Yes...do a search on Rehabilitation

2. CAN I BYPASS DCS AND PAY D.O.E. DIRECTLY AND AVOID COLLECTION FEES? No. You were assessed the collection fees by the DOE 60 days post default.

3. WHERE CAN I FIND A LOAN TO COVER A 75% SETTLEMENT OFFER? With a default on the books it is unlikely you will get a better interest rate than you are already paying. Keep in mind that that anything they settle off you will pay taxes on the following year.
Thanks for any and all suggestions!