Gotta love CA's. Should I send them a letter requesting rehab?

Nope. You have to call as they will not negotiate via mail. The Higher Education Act does does not require down payments for rehab. Quote that to them Otherwize tell them you will contact the Student Loan Ombudsman.

Guess Ill call back and try to get someone else.

Also you may try to offer approx 1.5% of the balance (because that is close to the typical payment amount). Also, open another bank account and use it strictly for this rehab agreement, so when they ask for your information (which they may not agree to a rehab without autopay from your account) then they cant later take extra money out of the account without your approval.

It is not necessary to open another account for federal student loans. Double dipping is a HUGE no no and grounds for them to loose the entire contract.

They also cannot turn you down for refusing to do an autopayment. Another no no.

Lynn, I know we've had "issues" here before about my distrust of student loan CAs due to that one emptying my account back in 1997.

Due to just how big of a pain in the butt it is to go out and buy a money order, I have sent my last 2 rehab payments via personal check, with no ill effects. I may actually call them to set up autopayments to make it even easier for my last 3 payments, plus the time it takes to get a lender!

I setup another account at different bank just to pay on this. I really wish i was dealing with the original loaner cause these guys are such scum. They seem to have a playbook of every sleazy CA tactic. I dont trust a word. I asked for rehab and they tell me 'sure' but they cant send me anything in the mail until I make the first payment to get in the program. Which sounds like a lie. They use the getting the supervisor on the phone intimidation act. I've talked to so many supervisors of supervisors I should be at the ceo by now.

I figure Ill make one payment and if they dont send anything in the mail Ill stop paying and try consolidation. I just want this monkey off my back. What should I pay monthly for 8500 debt?

Did you not set up payment with the CA???? Do not stop making payments. There is nothing they can sending you now that you cannot look up yourself on the web. You do not qualify for a rehab until your 9th payment is made. Any paperwork you get now really means nothing.

FYI...guarantors will start compling the IRS tax offset lists shortly.

Who are you dealing with? My SL is with Premier (I can't remember the whole name right now), and they faxed me an agreement to sign before I sent them my first payment, outlining all the details of my rehab plan. They did not require a downpayment, and while I did have to file an appeal with the DOE regarding the payment amount (they wanted $300, I could only pay $200), I just made payment #6 and everything is going smoothly.

As I told Lynn a few posts before this, I had MAJOR issues with the CA having ANY of my bank info due to one wiping out my account back in the mid 90's. The CA was not happy that I would not set up auto payments with them, but did not press the issue. For my first 3 payments I bought money orders to send in. I had an emergency and my mom made the 4th payment for me, and last month things were crazy so I just sent them off a check from my account. Nothing terrible happened, so I did the same this month too, and may call them at the end of the month to set up auto-pay for the remaining payments.

BTW, they DID get my tax refund ($2500), which took my balance down to around $18000. I know my payments will probably go up once a new lender takes it over, but right now the $200/month seems to be making a dent in what I owe - just as a point of reference for you.

Good luck to you!

It's not the same CA. I'd rather not say the name as its a small company and my paranoia has kept CAs away for a long time. I did setup a seperate account to pay them electonically. They can drain that account all they want there wont be much in there. After I finish my rehab it will go back to the original lender who ive dealt with before and is very professional.

I still dont understand how rehab can reage this debt onto my credit report even as a new tradeline. If the date of deliquincy is ove 7 years then it can't be reaged. I guess its a mute point cause I don't plan on missing payments and it will still be positive tradeline. But if i go to by a house and its not on my credit report I look like I owe a lot less. Which I should still report to any lenders regardless. But I like to keep my options open.

See the sticky at the top of this forum. There is an exception to the FCRA in the Higher Education Act, so DOFD is irrelevant for defaulted SLs. Rehab, however, does NOT reage the debt -- default does. Rehabbing in and of itself does not affect the reporting date for the negative information (except that finishing it means that the default notation will be removed from the guarantor's TL).

Hope this helps! Good luck with rehab!