I've been sent wage garnishment warning mail... So, I know I need to act quickly. I've been reading this board overnight and seems like this is what I must do since it is a Federal Student Loan:
Must call the CA to set up "rehab" plan
- no down payments neccessary
- for 9 months (reasonable amount)
My question is this...
1. I can request for written agreement for the rehab plan... but likely not to get it, but just pay anyways
(Correct/Incorrect)
2. I'm thinking of sending Money Order (which you are allow too from what I've read)... Should I using cerified mail? or something produces recept or proof that I've sent the payments? If so what is the best way?
3. If they give me problems getting me the "rehab" plan, tell them about Ombudsman office... and call them as well. (Correct/Incorrect)
Seems like I'm at their mercy when if there is a problem and proving that I pay them or not during this "rehab" plan.... Any word of advice or things I can do to help me settle my mind?
Also..... is there anything I need to do before just calling them to get the "rehab" plan? From what I've read ... just call them and get a plan started.
Thanks,
Full Version: Defaulted Loan... Questions...
One other thing I would like to clear up....
Seems like Collection Fees being dropped after "Rehab" is completed is on discretion of the Collection Agency... Is that correct or something I need to bargain for up front when I call them to do the "Rehab".
Seems like Collection Fees being dropped after "Rehab" is completed is on discretion of the Collection Agency... Is that correct or something I need to bargain for up front when I call them to do the "Rehab".
I am no pro at this but I too was one paycheck away from wage garnishment and I just finished rehab in nov.! so here's my contribution to the board!
p.s. I had my last payment in oct and they said if i paid one month in advance they would lower my payment by 50 dollars for my last payment however when I did this they claimed to have lost my payment and demanded another one (how I dont know when I used the same electronic method for the past 6 mos.??) anyway long story short since I had my MTCN # and contacted western union whom told me the date and whom(dept of ed/CA) collected my payment! I then contacted them provided them the info and after they investigated they fixed it all up! thank god for that MTCN # or else that last payment would have D I C Ked me by not being ontime and consecutive!
QUOTE(manchul @ Jan 31 2007, 01:58 PM) 
I've been sent wage garnishment warning mail... So, I know I need to act quickly. I've been reading this board overnight and seems like this is what I must do since it is a Federal Student Loan:
Must call the CA to set up "rehab" plan
- no down payments neccessary
- for 9 months (reasonable amount)
My question is this...
1. I can request for written agreement for the rehab plan... but likely not to get it, but just pay anyways
(Correct/Incorrect) This is correct pay ASAP all the rehab program requires is 9 consecutive on time payments! so advice is to pay now, get the letter later!
2. I'm thinking of sending Money Order (which you are allow too from what I've read)... Should I using certified mail? or something produces receipt or proof that I've sent the payments? If so what is the best way? Well I did western union too and the first to times I just kept my receipt and my MTCN# (very very important I stress) but then later I set up an online account w/ western union and did it all electronic from my bank card. yea it cost extra but fast and convenient as hell, as I want to be and I stress on time and consecutive!
3. If they give me problems getting me the "rehab" plan, tell them about Ombudsman office... and call them as well. (Correct/Incorrect)Didn't have this problem so I don't know??? but they should be happy you are agreeing to pay, let them know u have set up an acct w/ western union to make on time payment that may help! so set that account up asap!
Seems like I'm at their mercy when if there is a problem and proving that I pay them or not during this "rehab" plan.... Any word of advice or things I can do to help me settle my mind?
Also..... is there anything I need to do before just calling them to get the "rehab" plan? From what I've read ... just call them and get a plan started.
Thanks,
Must call the CA to set up "rehab" plan
- no down payments neccessary
- for 9 months (reasonable amount)
My question is this...
1. I can request for written agreement for the rehab plan... but likely not to get it, but just pay anyways
(Correct/Incorrect) This is correct pay ASAP all the rehab program requires is 9 consecutive on time payments! so advice is to pay now, get the letter later!
2. I'm thinking of sending Money Order (which you are allow too from what I've read)... Should I using certified mail? or something produces receipt or proof that I've sent the payments? If so what is the best way? Well I did western union too and the first to times I just kept my receipt and my MTCN# (very very important I stress) but then later I set up an online account w/ western union and did it all electronic from my bank card. yea it cost extra but fast and convenient as hell, as I want to be and I stress on time and consecutive!
3. If they give me problems getting me the "rehab" plan, tell them about Ombudsman office... and call them as well. (Correct/Incorrect)Didn't have this problem so I don't know??? but they should be happy you are agreeing to pay, let them know u have set up an acct w/ western union to make on time payment that may help! so set that account up asap!
Seems like I'm at their mercy when if there is a problem and proving that I pay them or not during this "rehab" plan.... Any word of advice or things I can do to help me settle my mind?
Also..... is there anything I need to do before just calling them to get the "rehab" plan? From what I've read ... just call them and get a plan started.
Thanks,
p.s. I had my last payment in oct and they said if i paid one month in advance they would lower my payment by 50 dollars for my last payment however when I did this they claimed to have lost my payment and demanded another one (how I dont know when I used the same electronic method for the past 6 mos.??) anyway long story short since I had my MTCN # and contacted western union whom told me the date and whom(dept of ed/CA) collected my payment! I then contacted them provided them the info and after they investigated they fixed it all up! thank god for that MTCN # or else that last payment would have D I C Ked me by not being ontime and consecutive!
QUOTE(manchul @ Jan 31 2007, 01:58 PM)
I've been sent wage garnishment warning mail... So, I know I need to act quickly. I've been reading this board overnight and seems like this is what I must do since it is a Federal Student Loan:
Must call the CA to set up "rehab" plan
- no down payments neccessary
- for 9 months (reasonable amount)
My question is this...
1. I can request for written agreement for the rehab plan... but likely not to get it, but just pay anyways
(Correct/Incorrect)
Correct. You can certainly request it. They are not required to provide it, but may be willing to.
2. I'm thinking of sending Money Order (which you are allow too from what I've read)... Should I using cerified mail? or something produces recept or proof that I've sent the payments? If so what is the best way?
They will probably push for ACH debit. You are least likely to have a past-due payment with that method, and its easy to see day they recieved each payment. Check would be the other method I recommend. The thing I don't like about Money Orders is its very hard to find out when they cashed it, or if they even did.
3. If they give me problems getting me the "rehab" plan, tell them about Ombudsman office... and call them as well. (Correct/Incorrect)
Correct.
Seems like I'm at their mercy when if there is a problem and proving that I pay them or not during this "rehab" plan.... Any word of advice or things I can do to help me settle my mind?
It's in their best interest to help you successfully rehab the loan. Once you rehab it they can sell it to a lendor for the full amount... it does not benefit them to keep it in default.
Keep records of payments you made, and proof of teh dates they cashed the payments (pretty easy to do if paying with checks or ACH).
Also..... is there anything I need to do before just calling them to get the "rehab" plan? From what I've read ... just call them and get a plan started.
Know your gross monthly income, disposable monthly income, expenses, etc before you call. Have supporting documentation ready if needed. Avoid sob stories. Let them ask the questions. Remain calm no matter what, and stick to the facts.
Thanks,
Must call the CA to set up "rehab" plan
- no down payments neccessary
- for 9 months (reasonable amount)
My question is this...
1. I can request for written agreement for the rehab plan... but likely not to get it, but just pay anyways
(Correct/Incorrect)
Correct. You can certainly request it. They are not required to provide it, but may be willing to.
2. I'm thinking of sending Money Order (which you are allow too from what I've read)... Should I using cerified mail? or something produces recept or proof that I've sent the payments? If so what is the best way?
They will probably push for ACH debit. You are least likely to have a past-due payment with that method, and its easy to see day they recieved each payment. Check would be the other method I recommend. The thing I don't like about Money Orders is its very hard to find out when they cashed it, or if they even did.
3. If they give me problems getting me the "rehab" plan, tell them about Ombudsman office... and call them as well. (Correct/Incorrect)
Correct.
Seems like I'm at their mercy when if there is a problem and proving that I pay them or not during this "rehab" plan.... Any word of advice or things I can do to help me settle my mind?
It's in their best interest to help you successfully rehab the loan. Once you rehab it they can sell it to a lendor for the full amount... it does not benefit them to keep it in default.
Keep records of payments you made, and proof of teh dates they cashed the payments (pretty easy to do if paying with checks or ACH).
Also..... is there anything I need to do before just calling them to get the "rehab" plan? From what I've read ... just call them and get a plan started.
Know your gross monthly income, disposable monthly income, expenses, etc before you call. Have supporting documentation ready if needed. Avoid sob stories. Let them ask the questions. Remain calm no matter what, and stick to the facts.
Thanks,
QUOTE(manchul @ Jan 31 2007, 12:58 PM)
I've been sent wage garnishment warning mail... So, I know I need to act quickly. I've been reading this board overnight and seems like this is what I must do since it is a Federal Student Loan:
Must call the CA to set up "rehab" plan
- no down payments neccessary
- for 9 months (reasonable amount)
It would be a reasonable amount based on your income and expenses.
My question is this...
1. I can request for written agreement for the rehab plan... but likely not to get it, but just pay anyways
(Correct/Incorrect)
Some guarantor allow letters to go out, others don't. You are covered by the HEA.
2. I'm thinking of sending Money Order (which you are allow too from what I've read)... Should I using cerified mail? or something produces recept or proof that I've sent the payments? If so what is the best way?
Money orders are risky. You have no proof that the payment was received/cashed. A receipt for a MO is not proof of payment. Checking account is safer. Certified mail is slow and is could cause you to miss the window.
3. If they give me problems getting me the "rehab" plan, tell them about Ombudsman office... and call them as well. (Correct/Incorrect)
Correct.
Seems like I'm at their mercy when if there is a problem and proving that I pay them or not during this "rehab" plan.... Any word of advice or things I can do to help me settle my mind?
Also..... is there anything I need to do before just calling them to get the "rehab" plan? From what I've read ... just call them and get a plan started.
Thanks,
Must call the CA to set up "rehab" plan
- no down payments neccessary
- for 9 months (reasonable amount)
It would be a reasonable amount based on your income and expenses.
My question is this...
1. I can request for written agreement for the rehab plan... but likely not to get it, but just pay anyways
(Correct/Incorrect)
Some guarantor allow letters to go out, others don't. You are covered by the HEA.
2. I'm thinking of sending Money Order (which you are allow too from what I've read)... Should I using cerified mail? or something produces recept or proof that I've sent the payments? If so what is the best way?
Money orders are risky. You have no proof that the payment was received/cashed. A receipt for a MO is not proof of payment. Checking account is safer. Certified mail is slow and is could cause you to miss the window.
3. If they give me problems getting me the "rehab" plan, tell them about Ombudsman office... and call them as well. (Correct/Incorrect)
Correct.
Seems like I'm at their mercy when if there is a problem and proving that I pay them or not during this "rehab" plan.... Any word of advice or things I can do to help me settle my mind?
Also..... is there anything I need to do before just calling them to get the "rehab" plan? From what I've read ... just call them and get a plan started.
Thanks,
QUOTE(LynnInMN @ Jan 31 2007, 05:48 PM)
QUOTE(manchul @ Jan 31 2007, 12:58 PM)
I've been sent wage garnishment warning mail... So, I know I need to act quickly. I've been reading this board overnight and seems like this is what I must do since it is a Federal Student Loan:
Must call the CA to set up "rehab" plan
- no down payments neccessary
- for 9 months (reasonable amount)
It would be a reasonable amount based on your income and expenses.
My question is this...
1. I can request for written agreement for the rehab plan... but likely not to get it, but just pay anyways
(Correct/Incorrect)
Some guarantor allow letters to go out, others don't. You are covered by the HEA.
2. I'm thinking of sending Money Order (which you are allow too from what I've read)... Should I using cerified mail? or something produces recept or proof that I've sent the payments? If so what is the best way?
Money orders are risky. You have no proof that the payment was received/cashed. A receipt for a MO is not proof of payment. Checking account is safer. Certified mail is slow and is could cause you to miss the window.
3. If they give me problems getting me the "rehab" plan, tell them about Ombudsman office... and call them as well. (Correct/Incorrect)
Correct.
Seems like I'm at their mercy when if there is a problem and proving that I pay them or not during this "rehab" plan.... Any word of advice or things I can do to help me settle my mind?
Also..... is there anything I need to do before just calling them to get the "rehab" plan? From what I've read ... just call them and get a plan started.
Thanks,
I guess no one read my MTCN # story..? yes a check is the best way! but I sure didnt want them to have access to anything dealing with my bank account! bad enough they can just garnish your paycheck!!!
QUOTE
I guess no one read my MTCN # story..? yes a check is the best way! but I sure didnt want them to have access to anything dealing with my bank account! bad enough they can just garnish your paycheck!!!
It is against the FDCPA to access money from a checking account that it not authorized. With student loans, because they are so highly regulated, monitored and audited, checking is the safest way to go. Western Union cost how much extra, $12.95 for an instant transfer???....checking is free.
As I said before, SL CA vendors will not take the risk in double dipping or unauthorized debits. It costs the CA millions to get these lucrative contracts. They CAN garnish legally...why would they want to debit accounts illegally, risking loosing their contracts.
Thank you everyone for such quick answers....
Other questions I had is this:
1. The amount I owe according to the letter I received is $6,600. Yes not that much... currently I make enough to pay this off in 9 months... Since I want to properly rehab... If the "reasonable" amount makes me pay only for less then that time (like in 7 months)... is that a proper rehab? I'm under the impression that you MUST pay for 9 months and have a left over amount for them to sell to fix my credit report. (which is the main goal here)
- I read that max you can be allow to pay is 25% of what you get after taxes... which will make me pay less then 9 months.
- is there a rule of maximum percentage of the debt amount that I'm asked to pay per month? or something?
2. Also... I've been bad about doing taxes... which I'm currently in process of doing last few years worth. I'm very concerned that this (paying off SL - and paying back taxes) might stretch my finances such that I may not be able to make both (also accountants fees that I will pay very soon). Since, I'm currently working on these situation... not sure what they will amount too... wondering telling them all this will make a difference in settling the "reasonable" amount.
3. but if I do get any taxes (not sure of anything at this point) back and if they seize it (while doing the rehab)... and that is enough to pay off the loan... is my rehab canceled?
4. Finally gotten married recently... do I report what she makes while talking to CA?
Thanks everyone!
It is against the FDCPA to access money from a checking account that it not authorized. With student loans, because they are so highly regulated, monitored and audited, checking is the safest way to go. Western Union cost how much extra, $12.95 for an instant transfer???....checking is free.
As I said before, SL CA vendors will not take the risk in double dipping or unauthorized debits. It costs the CA millions to get these lucrative contracts. They CAN garnish legally...why would they want to debit accounts illegally, risking loosing their contracts.
Other questions I had is this:
1. The amount I owe according to the letter I received is $6,600. Yes not that much... currently I make enough to pay this off in 9 months... Since I want to properly rehab... If the "reasonable" amount makes me pay only for less then that time (like in 7 months)... is that a proper rehab? I'm under the impression that you MUST pay for 9 months and have a left over amount for them to sell to fix my credit report. (which is the main goal here)
- I read that max you can be allow to pay is 25% of what you get after taxes... which will make me pay less then 9 months.
- is there a rule of maximum percentage of the debt amount that I'm asked to pay per month? or something?
2. Also... I've been bad about doing taxes... which I'm currently in process of doing last few years worth. I'm very concerned that this (paying off SL - and paying back taxes) might stretch my finances such that I may not be able to make both (also accountants fees that I will pay very soon). Since, I'm currently working on these situation... not sure what they will amount too... wondering telling them all this will make a difference in settling the "reasonable" amount.
3. but if I do get any taxes (not sure of anything at this point) back and if they seize it (while doing the rehab)... and that is enough to pay off the loan... is my rehab canceled?
4. Finally gotten married recently... do I report what she makes while talking to CA?
Thanks everyone!
QUOTE(LynnInMN @ Feb 1 2007, 08:57 AM)
QUOTE
I guess no one read my MTCN # story..? yes a check is the best way! but I sure didnt want them to have access to anything dealing with my bank account! bad enough they can just garnish your paycheck!!!
It is against the FDCPA to access money from a checking account that it not authorized. With student loans, because they are so highly regulated, monitored and audited, checking is the safest way to go. Western Union cost how much extra, $12.95 for an instant transfer???....checking is free.
As I said before, SL CA vendors will not take the risk in double dipping or unauthorized debits. It costs the CA millions to get these lucrative contracts. They CAN garnish legally...why would they want to debit accounts illegally, risking loosing their contracts.
QUOTE(manchul @ Feb 1 2007, 09:23 AM)
Thank you everyone for such quick answers....
Other questions I had is this:
1. The amount I owe according to the letter I received is $6,600. Yes not that much... currently I make enough to pay this off in 9 months... Since I want to properly rehab... If the "reasonable" amount makes me pay only for less then that time (like in 7 months)... is that a proper rehab? I'm under the impression that you MUST pay for 9 months and have a left over amount for them to sell to fix my credit report. (which is the main goal here)
With a rehab, you have to have a loan balance in excess of $1000 to rehab. Paying a loan balance off in 9 months is not rehabilitating a loan...it is simply paying it off. If your balance is $6k, the standard payment for rehab is $60. Offer them $200 and they will probably grab it.
- I read that max you can be allow to pay is 25% of what you get after taxes... which will make me pay less then 9 months.
- is there a rule of maximum percentage of the debt amount that I'm asked to pay per month? or something?
There is no max pay or formula percentage. The rule of thumb is a rehab payment of 1% of the balance with a minimum payment of $50.
2. Also... I've been bad about doing taxes... which I'm currently in process of doing last few years worth. I'm very concerned that this (paying off SL - and paying back taxes) might stretch my finances such that I may not be able to make both (also accountants fees that I will pay very soon). Since, I'm currently working on these situation... not sure what they will amount too... wondering telling them all this will make a difference in settling the "reasonable" amount.
3. but if I do get any taxes (not sure of anything at this point) back and if they seize it (while doing the rehab)... and that is enough to pay off the loan... is my rehab canceled?
Yup....if the account is paid off, there is nothing to rehab.
4. Finally gotten married recently... do I report what she makes while talking to CA?
Thanks everyone!
It is against the FDCPA to access money from a checking account that it not authorized. With student loans, because they are so highly regulated, monitored and audited, checking is the safest way to go. Western Union cost how much extra, $12.95 for an instant transfer???....checking is free.
As I said before, SL CA vendors will not take the risk in double dipping or unauthorized debits. It costs the CA millions to get these lucrative contracts. They CAN garnish legally...why would they want to debit accounts illegally, risking loosing their contracts.
Other questions I had is this:
1. The amount I owe according to the letter I received is $6,600. Yes not that much... currently I make enough to pay this off in 9 months... Since I want to properly rehab... If the "reasonable" amount makes me pay only for less then that time (like in 7 months)... is that a proper rehab? I'm under the impression that you MUST pay for 9 months and have a left over amount for them to sell to fix my credit report. (which is the main goal here)
With a rehab, you have to have a loan balance in excess of $1000 to rehab. Paying a loan balance off in 9 months is not rehabilitating a loan...it is simply paying it off. If your balance is $6k, the standard payment for rehab is $60. Offer them $200 and they will probably grab it.
- I read that max you can be allow to pay is 25% of what you get after taxes... which will make me pay less then 9 months.
- is there a rule of maximum percentage of the debt amount that I'm asked to pay per month? or something?
There is no max pay or formula percentage. The rule of thumb is a rehab payment of 1% of the balance with a minimum payment of $50.
2. Also... I've been bad about doing taxes... which I'm currently in process of doing last few years worth. I'm very concerned that this (paying off SL - and paying back taxes) might stretch my finances such that I may not be able to make both (also accountants fees that I will pay very soon). Since, I'm currently working on these situation... not sure what they will amount too... wondering telling them all this will make a difference in settling the "reasonable" amount.
3. but if I do get any taxes (not sure of anything at this point) back and if they seize it (while doing the rehab)... and that is enough to pay off the loan... is my rehab canceled?
Yup....if the account is paid off, there is nothing to rehab.
4. Finally gotten married recently... do I report what she makes while talking to CA?
Thanks everyone!
QUOTE(LynnInMN @ Feb 1 2007, 08:57 AM)
QUOTE
I guess no one read my MTCN # story..? yes a check is the best way! but I sure didnt want them to have access to anything dealing with my bank account! bad enough they can just garnish your paycheck!!!
It is against the FDCPA to access money from a checking account that it not authorized. With student loans, because they are so highly regulated, monitored and audited, checking is the safest way to go. Western Union cost how much extra, $12.95 for an instant transfer???....checking is free.
As I said before, SL CA vendors will not take the risk in double dipping or unauthorized debits. It costs the CA millions to get these lucrative contracts. They CAN garnish legally...why would they want to debit accounts illegally, risking loosing their contracts.
In other words... they can go after your tax returns even if you are on rehab plan?
Thanks Lynn for your time again and quick answers!
This board is a life saver!
Thank you everyone for such quick answers....
3. but if I do get any taxes (not sure of anything at this point) back and if they seize it (while doing the rehab)... and that is enough to pay off the loan... is my rehab canceled?
Yup....if the account is paid off, there is nothing to rehab.
It is against the FDCPA to access money from a checking account that it not authorized. With student loans, because they are so highly regulated, monitored and audited, checking is the safest way to go. Western Union cost how much extra, $12.95 for an instant transfer???....checking is free.
As I said before, SL CA vendors will not take the risk in double dipping or unauthorized debits. It costs the CA millions to get these lucrative contracts. They CAN garnish legally...why would they want to debit accounts illegally, risking loosing their contracts.
Thanks Lynn for your time again and quick answers!
This board is a life saver!
QUOTE(LynnInMN @ Feb 1 2007, 10:30 AM)
QUOTE(manchul @ Feb 1 2007, 09:23 AM)
Thank you everyone for such quick answers....
3. but if I do get any taxes (not sure of anything at this point) back and if they seize it (while doing the rehab)... and that is enough to pay off the loan... is my rehab canceled?
Yup....if the account is paid off, there is nothing to rehab.
QUOTE(LynnInMN @ Feb 1 2007, 08:57 AM)
QUOTE
I guess no one read my MTCN # story..? yes a check is the best way! but I sure didnt want them to have access to anything dealing with my bank account! bad enough they can just garnish your paycheck!!!
It is against the FDCPA to access money from a checking account that it not authorized. With student loans, because they are so highly regulated, monitored and audited, checking is the safest way to go. Western Union cost how much extra, $12.95 for an instant transfer???....checking is free.
As I said before, SL CA vendors will not take the risk in double dipping or unauthorized debits. It costs the CA millions to get these lucrative contracts. They CAN garnish legally...why would they want to debit accounts illegally, risking loosing their contracts.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.