Help - Search - Members - Calendar
Full Version: Rehab question
CreditBoards > Financing > Student Loans
smnewcomb
I've got a question about rehab. Basically, exactly what is it? I've been reading a lot of posts and ya'll mention rehab but I haven't found anything that explains what it is. I tried doing a search on "rehab" but since its mentioned so often the forum search feature sort of went beserk on me.

Here's my situation. I have a Sallie Mae PRIVATE student loan that is about $12,000. With an extremely high interest rate (I think its about 19%) when the loan is all paid off, I'm going to be paying out almost $60K.

I lost my job for about 3 months last year and got rehired in January. My loans to Sallie Mae were to start being paid back last November but with no income, I couldn't do it. I tried calling SM back in February and they were obnoxious, rude and completely unbending. They stated the best they could do was a deferral on my loan. I was thinking GREAT until I was told I could only defer 3 months and since my payments were due to start in November, they could defer Nov, Dec and Jan and would have to start payments right away. I tried to explain that I had been out of work but they refused to listen. So...I know this was a dumb move...but I just can't make any payments to them.

My Stafford Loans are all currently being consolidated and I won't start repayment on them until October. I'm on a 3 month mortgage foreclosure forebearance agreement with my bank. So if everyone else is trying to help, why won't SM?

I don't want this to go to collections and its about to. From what I've been reading on this site, it seems like a rehab - whatever it is - may be my next shot.
Saria
Private loans can't be rehabbed, only federal loans.

Here's a link to some basic info on rehab for anyone interested: http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html
LynnInMN
Private loans do not offer extensive deferrals or forebearances as you have found out. They are simply not required to as they are private, outside of the federal student loan programs.

You say your staffords are currently been consolidated. Generally payments start 45 days after the consolidation has funded and you cannot apply for deferment or forebearance until the consolidation has gone thru.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.
Invision Power Board © 2001-2009 Invision Power Services, Inc.