Hi All,
I would like to first start off by thanking everyone for their contributions not only to this thread but also to this site. I am about to contact the CA that is handling my account in order to setup rehab payments. I've already opened a bank account to be used solely for the student loan payments. I just had a few clarifying questions before I contact them.
1) How soon would they usually require the first payment? I only get paid twice a month and my next check is pretty much going to rent. So if I contact them now, would they demand immediate payment?
2) If I contact them and are straight forward as to setting up payment arrangements, that are reasonable and affordable (around 25k total principle balance w/$36k+ outstanding balance owed, collections & interest I quess), what type of personal information would be required? If I provide my basic info: home #, address, and bank account what more would they need?
3) From what I have been reading, an acceptable payment without too much resistance would average about 1%. Would that be of the principal or the total amount outstanding which includes collection costs? I could comfortably afford $250-275 a month but $360 would be pretty painful.
Thanks in advance for your help. I plan on making my call as soon as I get these questions clarified.
Full Version: Student Loan Rehab...
QUOTE(creditconqueror @ Sep 17 2007, 08:09 PM) 
Hi All,
I would like to first start off by thanking everyone for their contributions not only to this thread but also to this site. I am about to contact the CA that is handling my account in order to setup rehab payments. I've already opened a bank account to be used solely for the student loan payments. I just had a few clarifying questions before I contact them.
1) How soon would they usually require the first payment? I only get paid twice a month and my next check is pretty much going to rent. So if I contact them now, would they demand immediate payment?
They're going to give you the hard sell on sending it immediately and/or sending a down payment (which is not required by the HEA in setting up rehab). If you explain the situation and give them an exact date of when the first payment will be available and then work out an acceptable date for each following month (I'm assuming it would be the same date as your first payment each month), you should be able to work it out.
2) If I contact them and are straight forward as to setting up payment arrangements, that are reasonable and affordable (around 25k total principle balance w/$36k+ outstanding balance owed, collections & interest I quess), what type of personal information would be required? If I provide my basic info: home #, address, and bank account what more would they need?
If you're dealing with government-backed SLs (which you presumably are, since you're talking about rehab), believe me, they know all of your personal information already -- SS#, address, phone number, employer, etc. They can work directly with the IRS (that's how they do the tax return grabs), so they can get anything they need, so it's easier if you just give it to them directly when they ask. I don't remember that they asked me anything, though, except for, obviously, the bank account information.
3) From what I have been reading, an acceptable payment without too much resistance would average about 1%. Would that be of the principal or the total amount outstanding which includes collection costs? I could comfortably afford $250-275 a month but $360 would be pretty painful.
It's 1% of total owed, so it would be the $360. If you need a lower payment, you'll have to give them more information on your finances. I gave them a breakdown of my whole budget and showed them what I could afford. You may have to give them paycheck stubs as well -- I had to give them my 2 most recent. I just made a spreadsheet with everything I spend in a month and showed them exactly what was left over for a SL payment. Don't lie, but don't leave anything out, either. Make sure that it's something that you can afford, maybe with a *little* pain, so that you won't miss any payments.
Thanks in advance for your help. I plan on making my call as soon as I get these questions clarified.
I would like to first start off by thanking everyone for their contributions not only to this thread but also to this site. I am about to contact the CA that is handling my account in order to setup rehab payments. I've already opened a bank account to be used solely for the student loan payments. I just had a few clarifying questions before I contact them.
1) How soon would they usually require the first payment? I only get paid twice a month and my next check is pretty much going to rent. So if I contact them now, would they demand immediate payment?
They're going to give you the hard sell on sending it immediately and/or sending a down payment (which is not required by the HEA in setting up rehab). If you explain the situation and give them an exact date of when the first payment will be available and then work out an acceptable date for each following month (I'm assuming it would be the same date as your first payment each month), you should be able to work it out.
2) If I contact them and are straight forward as to setting up payment arrangements, that are reasonable and affordable (around 25k total principle balance w/$36k+ outstanding balance owed, collections & interest I quess), what type of personal information would be required? If I provide my basic info: home #, address, and bank account what more would they need?
If you're dealing with government-backed SLs (which you presumably are, since you're talking about rehab), believe me, they know all of your personal information already -- SS#, address, phone number, employer, etc. They can work directly with the IRS (that's how they do the tax return grabs), so they can get anything they need, so it's easier if you just give it to them directly when they ask. I don't remember that they asked me anything, though, except for, obviously, the bank account information.
3) From what I have been reading, an acceptable payment without too much resistance would average about 1%. Would that be of the principal or the total amount outstanding which includes collection costs? I could comfortably afford $250-275 a month but $360 would be pretty painful.
It's 1% of total owed, so it would be the $360. If you need a lower payment, you'll have to give them more information on your finances. I gave them a breakdown of my whole budget and showed them what I could afford. You may have to give them paycheck stubs as well -- I had to give them my 2 most recent. I just made a spreadsheet with everything I spend in a month and showed them exactly what was left over for a SL payment. Don't lie, but don't leave anything out, either. Make sure that it's something that you can afford, maybe with a *little* pain, so that you won't miss any payments.
Thanks in advance for your help. I plan on making my call as soon as I get these questions clarified.
Hope this helps! Good luck!!
Thanks for the assistance Ziggy! I have finally gotten started on my rehab. 
It is such a relief! 
. They offered me three offers:
1) settlement of $31,155
2) rehab @$352 a month which would continue at this amount even after I complete rehab and my loans are sent back to sallie mae.
3) a down payment & $239 a month excessive step up rehab, where after I complete my 9 months and it is sent to sallie mae my payment would go up to between $300-400 a month. They waived the down payment. I selected number 3 of course and asked specifically if this would still be considered the federal rehab program. My Rep specified that it was and that after I complete the 9 month rehab program I would be eligible for forbearance/deferred if needed just like before my default. I can budget this payment in. I my have to sacrifice a few things here and there but it will be ok. My husband and I have decided to try and make a game out of finding creative ways to cut costs and save. I am actually looking forward to it!
The CA stated that I should be getting my rehab paperwork in about 30 days. The process was pretty painless.
Thanks to Ziggy, Lynn, Cync, & everyone else who have contributed information for all of your help. Though sometimes you were brutually honest with your postings. I appreciated them from a sideline view.
I've been reading for months. I had been actively seeking employment for months because I wanted desparately to rehab my loans and get on with improving my financial future. During my job hunt, I read and learned so that when employment opened up for me, I would know exactly what needed to be done. THANKS AGAIN EVERYONE
It is such a relief! . They offered me three offers:1) settlement of $31,155
2) rehab @$352 a month which would continue at this amount even after I complete rehab and my loans are sent back to sallie mae.
3) a down payment & $239 a month excessive step up rehab, where after I complete my 9 months and it is sent to sallie mae my payment would go up to between $300-400 a month. They waived the down payment. I selected number 3 of course and asked specifically if this would still be considered the federal rehab program. My Rep specified that it was and that after I complete the 9 month rehab program I would be eligible for forbearance/deferred if needed just like before my default. I can budget this payment in. I my have to sacrifice a few things here and there but it will be ok. My husband and I have decided to try and make a game out of finding creative ways to cut costs and save. I am actually looking forward to it!
The CA stated that I should be getting my rehab paperwork in about 30 days. The process was pretty painless.
Thanks to Ziggy, Lynn, Cync, & everyone else who have contributed information for all of your help. Though sometimes you were brutually honest with your postings. I appreciated them from a sideline view.
I've been reading for months. I had been actively seeking employment for months because I wanted desparately to rehab my loans and get on with improving my financial future. During my job hunt, I read and learned so that when employment opened up for me, I would know exactly what needed to be done. THANKS AGAIN EVERYONE
Good luck to you.
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