Hi, I am new to this forum and I am desperate for help.

First, a little background. I finished nursing school 2 years ago and I consolidated my student loans. Unbeknownst to me there was this federal student nursing loan out there that the college had been sending the billing to an old address. Even though the college had my new address that I had been at for 2 years prior to graduation. Anyway, in May 07' I got a call from the college stating that this loan had defaulted.

The CA has taken over the loan and I have conversed with them several times and the only option that they offered was consolidation. I was going to do this until discovering that this would not be in my best interest as far as my credit report goes. I then mentioned the possibility of rehab of this loan and they are now very upset and stating that I am making this way more difficult and saying that if I rehab the loan my payments will be $850 a month for the next year. My loan balance is $7500. I am in a dilemna because I can not find the right person to talk to anywhere that can tell me my rights as far as rehab goes and what the whole process entails. I can not make that kind of payment financially.

The CA tells me that if I do consolidate that they do not report the default on my credit report as long as I do it soon. I don't trust them though, because they have been less than candid with me on everything else.

Is there anyone that can tell me how to proceed and how the rehab process works?

The college financial aid person has been a little help, but she is not very experienced on this matter. She basically told me that I can rehab this loan, but is unsure of how much the CA can charge for payments.

Thanks so much for any help anybody can give me, it is so hard dealing with CA and I do take responsibility for all of this mess, but I would like to know all of my options and the CA is getting very upset that I am not just following what they are telling me to do.

Jackie