I received a "Waiver of Option to Consolidate" form to sign as I have just completed my required 9 payments to rehabilitate. Does anyone know if this is just another step to complete my rehabilitation or is signing the form giving the CA the right to hold my account?

Here's what it says:

"I hereby decline to apply, at this time, for a Consolidation Loan to payoff the defaulted loan(s) which I am now repaying to the Department of Education.

After I make the required payments, I intend that the Department sell my loans to a lender. I understand after that sale, my loans will be considered rehabilitated. I understand that the monthly payments I will be required make to the lender after the sale may be substantially larger than the payments I would be required to make if I were to obtain a Consolidation Loan for this debt and if I were to make use of the longer repayment periods allowed for consolidation loans."

Any advice?

Thank you in advance!

What a pile of crap! This is not a DOE approved letter, I can tell you that! It sounds like the CA is trying to scare you into consolidating! I would not even bother returning it. Stick with your rehab and consolidate immediate after your rehab is complete.

Why are they sending this out?? My guess is that January and February are usually low months in collections and they are trying to boost numbers by pushing more consolidations.

Thank you! I will continue with my rehab until I get a letter that my loan has been sold. I will consolidate then.