Can a collection agent for a government backed student loan take into consideration of a spouses (who's not on the loan at all) when determining downpayment and monthly payment amounts?
If they can not, what law/rule is there that prevents them from doing this?
lil background, the collection agency who has my defaulted student loan and the company I'm attempting to get rehabilitation through is saying because of my husbands salary, they will not negotiate a lower downpayment of monthly payment that they are demanding.
I am unemployed and a full-time student. I offered them no down-payment and $25/mnth more then the original monthly they wanted. Their response was no based on my husbands salary.
Thanks!!!!!!!!!!!!!!!!
Full Version: Quick student loan collection question
Was the loan taken out before or after you were married? Obligations that were yours before you were married would definately not be tied to your husband's salary.
I'm not sure of the answer if the loan was taken out after you were married.
I'm not sure of the answer if the loan was taken out after you were married.
QUOTE
Was the loan taken out before or after you were married? Obligations that were yours before you were married would definately not be tied to your husband's salary.
I'm not sure of the answer if the loan was taken out after you were married.
I'm not sure of the answer if the loan was taken out after you were married.
Before we married.
Hey Brytani 
I saw your question earlier and was doing some research before I had to go cook dinner. I can't find anything that really says one way or the other if this is allowed.
My student loans were like yours -- I took them out before I married and rehabbed after. The CA I dealt with didn't ask about my hubby's income and I didn't volunteer any info, either. I'll try to dig through my papers later tonight and find my original rehab agreement to tell you if anything was on the financial form I filled out.
Sorry I couldn't find an answer for you.
-- Cheech
I saw your question earlier and was doing some research before I had to go cook dinner. I can't find anything that really says one way or the other if this is allowed.
My student loans were like yours -- I took them out before I married and rehabbed after. The CA I dealt with didn't ask about my hubby's income and I didn't volunteer any info, either. I'll try to dig through my papers later tonight and find my original rehab agreement to tell you if anything was on the financial form I filled out.
Sorry I couldn't find an answer for you.
-- Cheech
QUOTE
Hey Brytani
I saw your question earlier and was doing some research before I had to go cook dinner. I can't find anything that really says one way or the other if this is allowed.
My student loans were like yours -- I took them out before I married and rehabbed after. The CA I dealt with didn't ask about my hubby's income and I didn't volunteer any info, either. I'll try to dig through my papers later tonight and find my original rehab agreement to tell you if anything was on the financial form I filled out.
Sorry I couldn't find an answer for you.
-- Cheech
I saw your question earlier and was doing some research before I had to go cook dinner. I can't find anything that really says one way or the other if this is allowed.
My student loans were like yours -- I took them out before I married and rehabbed after. The CA I dealt with didn't ask about my hubby's income and I didn't volunteer any info, either. I'll try to dig through my papers later tonight and find my original rehab agreement to tell you if anything was on the financial form I filled out.
Sorry I couldn't find an answer for you.
-- Cheech
Thanks for looking Cheech, I'm having a hard time finding anything on it also. To bad there isn't a FDCPA or FCRA when it comes to student loans
Okay, I found my original agreement. Boy do I need to dust. This is the form my CA sent me. I've never seen anybody else's so I don't know if it's the same for everyone or not. I'll type the first part about what they asked for...
The rest of the form just has blanks for income and expenses like rent, utilities, car payment, insurance, food, gas, etc.
Interesting, because I didn't do any of that. They never asked if I was married and I didn't volunteer that info. I never sent in a single bill or receipt or pay stub either (I was unemployed at the time).
The bottom line is that they have to work with you to make a payment arrangement that is "reasonable and affordable" (and that quote is directly from the HEA). Are they really really far off from what you can swing each month? What are they asking you to pay and what did you want to pay? How much total do you owe and how are they coming up with their monthly payment amount?
The reason I ask is that I've seen some places have a guideline that your monthly rehab payment should be the same amt. it would take if you had a 10 yr payback period. But I think that they make exceptions in cases of hardship. In my case, that would have been $400 a month, but I offered $50 and they took it. I didn't even sign the silly form until I'd been in rehab for 11 months.
QUOTE
Statement of Financial Status
The information you provide in the following statement will be used to determine your ability to repay your defaulted loan. It is to your advantage to be as accurate and clear as possible, and explain any unusual expenses. You must enclose a copy of two recent pay stubs from you and your spouse as well as any other contributing member of your household. You must provide documentation (copies of bills, etc.) of expenses you list. You may attach additional pages if needed to document additional expenses or provide explanations.
The information you provide in the following statement will be used to determine your ability to repay your defaulted loan. It is to your advantage to be as accurate and clear as possible, and explain any unusual expenses. You must enclose a copy of two recent pay stubs from you and your spouse as well as any other contributing member of your household. You must provide documentation (copies of bills, etc.) of expenses you list. You may attach additional pages if needed to document additional expenses or provide explanations.
The rest of the form just has blanks for income and expenses like rent, utilities, car payment, insurance, food, gas, etc.
Interesting, because I didn't do any of that. They never asked if I was married and I didn't volunteer that info. I never sent in a single bill or receipt or pay stub either (I was unemployed at the time).
The bottom line is that they have to work with you to make a payment arrangement that is "reasonable and affordable" (and that quote is directly from the HEA). Are they really really far off from what you can swing each month? What are they asking you to pay and what did you want to pay? How much total do you owe and how are they coming up with their monthly payment amount?
The reason I ask is that I've seen some places have a guideline that your monthly rehab payment should be the same amt. it would take if you had a 10 yr payback period. But I think that they make exceptions in cases of hardship. In my case, that would have been $400 a month, but I offered $50 and they took it. I didn't even sign the silly form until I'd been in rehab for 11 months.
QUOTE
Okay, I found my original agreement. Boy do I need to dust. This is the form my CA sent me. I've never seen anybody else's so I don't know if it's the same for everyone or not. I'll type the first part about what they asked for...
The rest of the form just has blanks for income and expenses like rent, utilities, car payment, insurance, food, gas, etc.
Interesting, because I didn't do any of that. They never asked if I was married and I didn't volunteer that info. I never sent in a single bill or receipt or pay stub either (I was unemployed at the time).
The bottom line is that they have to work with you to make a payment arrangement that is "reasonable and affordable" (and that quote is directly from the HEA). Are they really really far off from what you can swing each month? What are they asking you to pay and what did you want to pay? How much total do you owe and how are they coming up with their monthly payment amount?
My loan is only $4300, they want $500 down and $60/mnth. It isn't the $60 it's the $500 I can't do right now. I offered no money down and $75/mnth. They say they won't go for it. BTW, what's the HEA? You can tell I'm new to the student loan stuff...
The reason I ask is that I've seen some places have a guideline that your monthly rehab payment should be the same amt. it would take if you had a 10 yr payback period. But I think that they make exceptions in cases of hardship. In my case, that would have been $400 a month, but I offered $50 and they took it. I didn't even sign the silly form until I'd been in rehab for 11 months.
QUOTE
Statement of Financial Status
The information you provide in the following statement will be used to determine your ability to repay your defaulted loan. It is to your advantage to be as accurate and clear as possible, and explain any unusual expenses. You must enclose a copy of two recent pay stubs from you and your spouse as well as any other contributing member of your household. You must provide documentation (copies of bills, etc.) of expenses you list. You may attach additional pages if needed to document additional expenses or provide explanations.
The information you provide in the following statement will be used to determine your ability to repay your defaulted loan. It is to your advantage to be as accurate and clear as possible, and explain any unusual expenses. You must enclose a copy of two recent pay stubs from you and your spouse as well as any other contributing member of your household. You must provide documentation (copies of bills, etc.) of expenses you list. You may attach additional pages if needed to document additional expenses or provide explanations.
The rest of the form just has blanks for income and expenses like rent, utilities, car payment, insurance, food, gas, etc.
Interesting, because I didn't do any of that. They never asked if I was married and I didn't volunteer that info. I never sent in a single bill or receipt or pay stub either (I was unemployed at the time).
The bottom line is that they have to work with you to make a payment arrangement that is "reasonable and affordable" (and that quote is directly from the HEA). Are they really really far off from what you can swing each month? What are they asking you to pay and what did you want to pay? How much total do you owe and how are they coming up with their monthly payment amount?
My loan is only $4300, they want $500 down and $60/mnth. It isn't the $60 it's the $500 I can't do right now. I offered no money down and $75/mnth. They say they won't go for it. BTW, what's the HEA? You can tell I'm new to the student loan stuff...
The reason I ask is that I've seen some places have a guideline that your monthly rehab payment should be the same amt. it would take if you had a 10 yr payback period. But I think that they make exceptions in cases of hardship. In my case, that would have been $400 a month, but I offered $50 and they took it. I didn't even sign the silly form until I'd been in rehab for 11 months.
I don't think they have any guidelines they are going by. They're demanding this amount, I can't swing it so they refuse to rehab instead saying they will just garnish my wages. Don't know how, I'm not working.
The collectors always demand as much as they can up front, but be firm with them. Your husband's income cannot count towards your pre-marriage student loans. I know this through my own person experience, although in the end, I decided to consolidate instead of rehab.
Brytani - they cannot force you to put money down. They may act like [words I can't say], but you stick to your guns on this one. Is the CA Van Ru? If I talk about them I'll have to wash my mouth out with soap. 
HEA is the Higher Education Act. It was originated in 1965 and amended in 1998. When we all say that rehab is the law - that's where we got it from. There is nothing in the HEA that mentions requiring you to pay money down. The ONLY requirement is 12 monthly payments. If they refuse to budge, I would definitely call the Dept. of Ed ombudsman.
Specifically, the section on Rehab is 674.39 and it says...
Wait til you go through all of this - you'll know more than you ever wanted to know about student loans.
HEA is the Higher Education Act. It was originated in 1965 and amended in 1998. When we all say that rehab is the law - that's where we got it from. There is nothing in the HEA that mentions requiring you to pay money down. The ONLY requirement is 12 monthly payments. If they refuse to budge, I would definitely call the Dept. of Ed ombudsman.
Specifically, the section on Rehab is 674.39 and it says...
QUOTE
(A) IN GENERAL- If the borrower of a loan made under this part who has defaulted on the loan makes 12 on time, consecutive, monthly payments of amounts owed on the loan, as determined by the institution, or by the Secretary in the case of a loan held by the Secretary, the loan shall be considered rehabilitated, and the institution that made that loan (or the Secretary, in the case of a loan held by the Secretary) shall request that any credit bureau organization or credit reporting agency to which the default was reported remove the default from the borrower's credit history.
(
COMPARABLE CONDITIONS- As long as the borrower continues to make scheduled repayments on a loan rehabilitated under this paragraph, the rehabilitated loan shall be subject to the same terms and conditions, and qualify for the same benefits and privileges, as other loans made under this part.
© ADDITIONAL ASSISTANCE- The borrower of a rehabilitated loan shall not be precluded by section 484 from receiving additional grant, loan, or work assistance under this title (for which the borrower is otherwise eligible) on the basis of defaulting on the loan prior to such rehabilitation.
(D) LIMITATIONS- A borrower only once may obtain the benefit of this paragraph with respect to rehabilitating a loan under this part.
RESTORATION OF ELIGIBILITY- If the borrower of a loan made under this part who has defaulted on that loan makes 6 on time, consecutive, monthly payments of amounts owed on such loan, the borrower's eligibility for grant, loan, or work assistance under this title shall be restored to the extent that the borrower is otherwise eligible. A borrower only once may obtain the benefit of this paragraph with respect to restored eligibility.
(
COMPARABLE CONDITIONS- As long as the borrower continues to make scheduled repayments on a loan rehabilitated under this paragraph, the rehabilitated loan shall be subject to the same terms and conditions, and qualify for the same benefits and privileges, as other loans made under this part.
© ADDITIONAL ASSISTANCE- The borrower of a rehabilitated loan shall not be precluded by section 484 from receiving additional grant, loan, or work assistance under this title (for which the borrower is otherwise eligible) on the basis of defaulting on the loan prior to such rehabilitation.
(D) LIMITATIONS- A borrower only once may obtain the benefit of this paragraph with respect to rehabilitating a loan under this part.
RESTORATION OF ELIGIBILITY- If the borrower of a loan made under this part who has defaulted on that loan makes 6 on time, consecutive, monthly payments of amounts owed on such loan, the borrower's eligibility for grant, loan, or work assistance under this title shall be restored to the extent that the borrower is otherwise eligible. A borrower only once may obtain the benefit of this paragraph with respect to restored eligibility.
Wait til you go through all of this - you'll know more than you ever wanted to know about student loans.
QUOTE
Brytani - they cannot force you to put money down. They may act like [words I can't say], but you stick to your guns on this one. Is the CA Van Ru? If I talk about them I'll have to wash my mouth out with soap.
HEA is the Higher Education Act. It was originated in 1965 and amended in 1998. When we all say that rehab is the law - that's where we got it from. There is nothing in the HEA that mentions requiring you to pay money down. The ONLY requirement is 12 monthly payments. If they refuse to budge, I would definitely call the Dept. of Ed ombudsman.
Specifically, the section on Rehab is 674.39 and it says...
Wait til you go through all of this - you'll know more than you ever wanted to know about student loans.
HEA is the Higher Education Act. It was originated in 1965 and amended in 1998. When we all say that rehab is the law - that's where we got it from. There is nothing in the HEA that mentions requiring you to pay money down. The ONLY requirement is 12 monthly payments. If they refuse to budge, I would definitely call the Dept. of Ed ombudsman.
Specifically, the section on Rehab is 674.39 and it says...
QUOTE
(A) IN GENERAL- If the borrower of a loan made under this part who has defaulted on the loan makes 12 on time, consecutive, monthly payments of amounts owed on the loan, as determined by the institution, or by the Secretary in the case of a loan held by the Secretary, the loan shall be considered rehabilitated, and the institution that made that loan (or the Secretary, in the case of a loan held by the Secretary) shall request that any credit bureau organization or credit reporting agency to which the default was reported remove the default from the borrower's credit history.
( COMPARABLE CONDITIONS- As long as the borrower continues to make scheduled repayments on a loan rehabilitated under this paragraph, the rehabilitated loan shall be subject to the same terms and conditions, and qualify for the same benefits and privileges, as other loans made under this part.
© ADDITIONAL ASSISTANCE- The borrower of a rehabilitated loan shall not be precluded by section 484 from receiving additional grant, loan, or work assistance under this title (for which the borrower is otherwise eligible) on the basis of defaulting on the loan prior to such rehabilitation.
(D) LIMITATIONS- A borrower only once may obtain the benefit of this paragraph with respect to rehabilitating a loan under this part.
RESTORATION OF ELIGIBILITY- If the borrower of a loan made under this part who has defaulted on that loan makes 6 on time, consecutive, monthly payments of amounts owed on such loan, the borrower's eligibility for grant, loan, or work assistance under this title shall be restored to the extent that the borrower is otherwise eligible. A borrower only once may obtain the benefit of this paragraph with respect to restored eligibility.
(
COMPARABLE CONDITIONS- As long as the borrower continues to make scheduled repayments on a loan rehabilitated under this paragraph, the rehabilitated loan shall be subject to the same terms and conditions, and qualify for the same benefits and privileges, as other loans made under this part.
© ADDITIONAL ASSISTANCE- The borrower of a rehabilitated loan shall not be precluded by section 484 from receiving additional grant, loan, or work assistance under this title (for which the borrower is otherwise eligible) on the basis of defaulting on the loan prior to such rehabilitation.
(D) LIMITATIONS- A borrower only once may obtain the benefit of this paragraph with respect to rehabilitating a loan under this part.
RESTORATION OF ELIGIBILITY- If the borrower of a loan made under this part who has defaulted on that loan makes 6 on time, consecutive, monthly payments of amounts owed on such loan, the borrower's eligibility for grant, loan, or work assistance under this title shall be restored to the extent that the borrower is otherwise eligible. A borrower only once may obtain the benefit of this paragraph with respect to restored eligibility.
Wait til you go through all of this - you'll know more than you ever wanted to know about student loans.
Thanks a bunch for this info. I'm going to write them a letter tonight, include this part of the HEA, try to act like I know what I'm talking about and tell them no down, monthly at $75.
Would you mind checking the letter once I've got it done?
My original servicer is ECMC and the collection agent who's giving me so many problems is GC Services.
Trust me, there is nothing you could say about Van Ru that I haven't already said about GC Services - and I still have tons of soap in the house <G>
QUOTE
QUOTE
Brytani - they cannot force you to put money down. They may act like [words I can't say], but you stick to your guns on this one. Is the CA Van Ru? If I talk about them I'll have to wash my mouth out with soap.
HEA is the Higher Education Act. It was originated in 1965 and amended in 1998. When we all say that rehab is the law - that's where we got it from. There is nothing in the HEA that mentions requiring you to pay money down. The ONLY requirement is 12 monthly payments. If they refuse to budge, I would definitely call the Dept. of Ed ombudsman.
Specifically, the section on Rehab is 674.39 and it says...
Wait til you go through all of this - you'll know more than you ever wanted to know about student loans.
HEA is the Higher Education Act. It was originated in 1965 and amended in 1998. When we all say that rehab is the law - that's where we got it from. There is nothing in the HEA that mentions requiring you to pay money down. The ONLY requirement is 12 monthly payments. If they refuse to budge, I would definitely call the Dept. of Ed ombudsman.
Specifically, the section on Rehab is 674.39 and it says...
QUOTE
(A) IN GENERAL- If the borrower of a loan made under this part who has defaulted on the loan makes 12 on time, consecutive, monthly payments of amounts owed on the loan, as determined by the institution, or by the Secretary in the case of a loan held by the Secretary, the loan shall be considered rehabilitated, and the institution that made that loan (or the Secretary, in the case of a loan held by the Secretary) shall request that any credit bureau organization or credit reporting agency to which the default was reported remove the default from the borrower's credit history.
( COMPARABLE CONDITIONS- As long as the borrower continues to make scheduled repayments on a loan rehabilitated under this paragraph, the rehabilitated loan shall be subject to the same terms and conditions, and qualify for the same benefits and privileges, as other loans made under this part.
© ADDITIONAL ASSISTANCE- The borrower of a rehabilitated loan shall not be precluded by section 484 from receiving additional grant, loan, or work assistance under this title (for which the borrower is otherwise eligible) on the basis of defaulting on the loan prior to such rehabilitation.
(D) LIMITATIONS- A borrower only once may obtain the benefit of this paragraph with respect to rehabilitating a loan under this part.
RESTORATION OF ELIGIBILITY- If the borrower of a loan made under this part who has defaulted on that loan makes 6 on time, consecutive, monthly payments of amounts owed on such loan, the borrower's eligibility for grant, loan, or work assistance under this title shall be restored to the extent that the borrower is otherwise eligible. A borrower only once may obtain the benefit of this paragraph with respect to restored eligibility.
(
COMPARABLE CONDITIONS- As long as the borrower continues to make scheduled repayments on a loan rehabilitated under this paragraph, the rehabilitated loan shall be subject to the same terms and conditions, and qualify for the same benefits and privileges, as other loans made under this part.
© ADDITIONAL ASSISTANCE- The borrower of a rehabilitated loan shall not be precluded by section 484 from receiving additional grant, loan, or work assistance under this title (for which the borrower is otherwise eligible) on the basis of defaulting on the loan prior to such rehabilitation.
(D) LIMITATIONS- A borrower only once may obtain the benefit of this paragraph with respect to rehabilitating a loan under this part.
RESTORATION OF ELIGIBILITY- If the borrower of a loan made under this part who has defaulted on that loan makes 6 on time, consecutive, monthly payments of amounts owed on such loan, the borrower's eligibility for grant, loan, or work assistance under this title shall be restored to the extent that the borrower is otherwise eligible. A borrower only once may obtain the benefit of this paragraph with respect to restored eligibility.
Wait til you go through all of this - you'll know more than you ever wanted to know about student loans.
Thanks a bunch for this info. I'm going to write them a letter tonight, include this part of the HEA, try to act like I know what I'm talking about and tell them no down, monthly at $75.
Would you mind checking the letter once I've got it done?
My original servicer is ECMC and the collection agent who's giving me so many problems is GC Services.
Trust me, there is nothing you could say about Van Ru that I haven't already said about GC Services - and I still have tons of soap in the house <G>
Ok, here is what i'm sending them. Don't know what I'll get back this time...
Satanic Collection Agency
Pits of Hell
Hades, Ohio 666-666
May 3, 2004
RE: Account #XXXXX
To Whom It May Concern:
Once again, I am attempting to rehabilitate my student loan through GC Services. As an unemployed, full-time student, I am unable to afford to put a substantial down-payment as GC Services is demanding, however I have offered to pay $75 a month for the rehabilitation of the loan.
Section 674.39 of the Higher Education Act is clear on the requirements for rehabilitation of defaulted student loans.
(A) IN GENERAL- If the borrower of a loan made under this part who has defaulted on the loan makes 12 on time, consecutive, monthly payments of amounts owed on the loan, as determined by the institution, or by the Secretary in the case of a loan held by the Secretary, the loan shall be considered rehabilitated, and the institution that made that loan (or the Secretary, in the case of a loan held by the Secretary) shall request that any credit bureau organization or credit reporting agency to which the default was reported remove the default from the borrower's credit history.
(
COMPARABLE CONDITIONS- As long as the borrower continues to make scheduled repayments on a loan rehabilitated under this paragraph, the rehabilitated loan shall be subject to the same terms and conditions, and qualify for the same benefits and privileges, as other loans made under this part.
© ADDITIONAL ASSISTANCE- The borrower of a rehabilitated loan shall not be precluded by section 484 from receiving additional grant, loan, or work assistance under this title (for which the borrower is otherwise eligible) on the basis of defaulting on the loan prior to such rehabilitation.
(D) LIMITATIONS- A borrower only once may obtain the benefit of this paragraph with respect to rehabilitating a loan under this part.
RESTORATION OF ELIGIBILITY- If the borrower of a loan made under this part who has defaulted on that loan makes 6 on time, consecutive, monthly payments of amounts owed on such loan, the borrower's eligibility for grant, loan, or work assistance under this title shall be restored to the extent that the borrower is otherwise eligible. A borrower only once may obtain the benefit of this paragraph with respect to restored eligibility.
The only requirement for rehabilitation is 12 consecutive payments, no down-payment is required. So once again, I am requesting Rehabilitation based on $75 a month in payment. This amount is more then the original monthly amount demanded by GC Services. I believe this is a fair amount on such a small loan and considering it is more then the monthly payment originally requested by GC Services, a more than fair offer.
So that my intent and desire to rehabilitate my loan is known to all interested parties, I am forwarding a copy of this letter to the Department of Education Ombudsman, Ombudsman of ECMC and DirectLoans.
I am prepared to begin payment during the month of May towards my rehabilitation. Please provide me with the necessary paperwork I need to fill out to begin rehabilitation and/or the information I need to begin my monthly payments.
Sincerely,
Awful defaulted student loan info here...
Brytani,
I'm going to have to pull out my paperwork also and see how mine was rehabbed from a few years ago. I remember initially the CA wanted at least $1200 to start the rehab and then pay $75 a month for 12 months. I didnt have the $1200 and I know they seemed really intent on getting that payment to be able to start rehab, but I'm pretty sure I didnt pay it. I just made the 12 $75 monthly payments and magically the loans were put onto my credit reports as new student loans and all the negative stuff was gone. After rehabbing my payment even dropped down to $52 a month.
Again, i'll have to look at the paperwork when I get home because its fuzzy in my memory if I actually paid anything to the CA upfront before starting the rehab payments, but I dont think I did.
I'm going to have to pull out my paperwork also and see how mine was rehabbed from a few years ago. I remember initially the CA wanted at least $1200 to start the rehab and then pay $75 a month for 12 months. I didnt have the $1200 and I know they seemed really intent on getting that payment to be able to start rehab, but I'm pretty sure I didnt pay it. I just made the 12 $75 monthly payments and magically the loans were put onto my credit reports as new student loans and all the negative stuff was gone. After rehabbing my payment even dropped down to $52 a month.
Again, i'll have to look at the paperwork when I get home because its fuzzy in my memory if I actually paid anything to the CA upfront before starting the rehab payments, but I dont think I did.
QUOTE
Brytani,
I'm going to have to pull out my paperwork also and see how mine was rehabbed from a few years ago. I remember initially the CA wanted at least $1200 to start the rehab and then pay $75 a month for 12 months. I didnt have the $1200 and I know they seemed really intent on getting that payment to be able to start rehab, but I'm pretty sure I didnt pay it. I just made the 12 $75 monthly payments and magically the loans were put onto my credit reports as new student loans and all the negative stuff was gone. After rehabbing my payment even dropped down to $52 a month.
Again, i'll have to look at the paperwork when I get home because its fuzzy in my memory if I actually paid anything to the CA upfront before starting the rehab payments, but I dont think I did.
I'm going to have to pull out my paperwork also and see how mine was rehabbed from a few years ago. I remember initially the CA wanted at least $1200 to start the rehab and then pay $75 a month for 12 months. I didnt have the $1200 and I know they seemed really intent on getting that payment to be able to start rehab, but I'm pretty sure I didnt pay it. I just made the 12 $75 monthly payments and magically the loans were put onto my credit reports as new student loans and all the negative stuff was gone. After rehabbing my payment even dropped down to $52 a month.
Again, i'll have to look at the paperwork when I get home because its fuzzy in my memory if I actually paid anything to the CA upfront before starting the rehab payments, but I dont think I did.
I'd appreciate it. So you mind telling me, how much was your student loan?
I'm part of the I hate Van Ru club. I hate them so much I don't bother with the soap -- anything vulgar I have to say about them is well deserved.
Brytani, I wouldn't get into extensively quoting the law to your CA. First off you do have to get them to agree to or acknowledge a monthly dollar amount that is "reasonable and affordable." VRu kept threatening to garnish my wages if I didn't pay $600/month and I literally said "Go ahead. You won't get anything near that kind of money from my wages. And it will cost you legal fees." Your CA has said themselves that $60/month is reasonable and affordable.
Send them a check and a letter that says "The law only requires me to make 12 monthly on time payments of this amount that you yourselves have determined is 'reasonable and affordable.' Here's the first one." Completely ignore the down payment.
Its not up to them whether or not to rehab your loan after you make 12 on-time "reasonable and afforadable payments." That's what the law requires and they cannot hi-jack your rehab because they "want" a down payment. If they continue to harrass you after you begin making payments, contact the loan ombudsman's office at the Dept. of Ed. They probably won't. They're just trying to bully you into giving them a bigger chunk of change.
Brytani, I wouldn't get into extensively quoting the law to your CA. First off you do have to get them to agree to or acknowledge a monthly dollar amount that is "reasonable and affordable." VRu kept threatening to garnish my wages if I didn't pay $600/month and I literally said "Go ahead. You won't get anything near that kind of money from my wages. And it will cost you legal fees." Your CA has said themselves that $60/month is reasonable and affordable.
Send them a check and a letter that says "The law only requires me to make 12 monthly on time payments of this amount that you yourselves have determined is 'reasonable and affordable.' Here's the first one." Completely ignore the down payment.
Its not up to them whether or not to rehab your loan after you make 12 on-time "reasonable and afforadable payments." That's what the law requires and they cannot hi-jack your rehab because they "want" a down payment. If they continue to harrass you after you begin making payments, contact the loan ombudsman's office at the Dept. of Ed. They probably won't. They're just trying to bully you into giving them a bigger chunk of change.
citygirl - I think that your advise is right on target. A rehab agreement isn't necessary to be considered in rehab and they can't very well turn down a payment accompanied by that statement.
Speaking of Van Ru horror stories - they called me one day on my cell phone at 2pm and said if I didn't wire them $3,000 before 5pm, they'd garnish my wages too. I told them to have at it - can't get blood from a turnip... lol. They gave up on me and I ended up doing my rehab through Pioneer. Total opposites - the folks at Pioneer were always very respectful and followed the law.
Brytani - let us know how it turns out.
Speaking of Van Ru horror stories - they called me one day on my cell phone at 2pm and said if I didn't wire them $3,000 before 5pm, they'd garnish my wages too. I told them to have at it - can't get blood from a turnip... lol. They gave up on me and I ended up doing my rehab through Pioneer. Total opposites - the folks at Pioneer were always very respectful and followed the law.
Brytani - let us know how it turns out.
Cheech - I'm still sorting things out with them (I'm making payments, but we're bickering about what the due date is supposed to be), so they like to call to harrass me when they can. They always threaten me that they're going to send me to garnishment, even when money is winging its way towards DOE as we speak. They claim that isn't good enough and try to force me to make another payment over the phone. Hah. Last time, the bozo who called trying to sound all insulted "My colleague says you hung up on him." I think I might have said "I probably got tired of listening to him yammer about nothing and making empty threats -- either that or I just put him on hold because I had actual work to do." One time a guy called and I didn't want to talk to him so I just transferred him around to empty voice mail boxes for a while. :twisted: He kept calling back. It was pathetic. I was cracking myself up. The guy was soooo mad, and he just couldn't accept that I was yanking his chain and he should just stop. Once they wanted the address, so I made something up. Its not like its a state secret, but I figure they should have to work for it.
Brytani - Let us know how things work out. Remember the CreditBoards Student Loan motto "If you want to garnish my wages, go right ahead."
Brytani - Let us know how things work out. Remember the CreditBoards Student Loan motto "If you want to garnish my wages, go right ahead."
I took the advice given to me on this forum and sent GC Services a check for $75.00 and a quick letter stating this is more than what they considered a fair and reasonable payment and it was my first payment towards rehab. I did request in the letter that they put my monthly due date, in writing to me, so they can't say payments were made late.
They returned my check to me today with a letter stating they were refusing the payment since it was below what they consider fair and reasonable based on "my husbands" salary. The note went on to say they would not accept rehabilitation from me for less than $250/mnth.
I've put a call into the Dept of Ed Ombudsman office and am waiting for their return call.
Even if these people are forced to accept rehab for the monthly amount I've sent it, I don't trust them to process my payments on time or to handle the rehabilitation. $250/mnth is hardly reasonable on a $4300 loan.
I'll update again once the Ombudsman weighs in.
They returned my check to me today with a letter stating they were refusing the payment since it was below what they consider fair and reasonable based on "my husbands" salary. The note went on to say they would not accept rehabilitation from me for less than $250/mnth.
I've put a call into the Dept of Ed Ombudsman office and am waiting for their return call.
Even if these people are forced to accept rehab for the monthly amount I've sent it, I don't trust them to process my payments on time or to handle the rehabilitation. $250/mnth is hardly reasonable on a $4300 loan.
I'll update again once the Ombudsman weighs in.
i was told by the department of education that the minimum they would accept for rehab was 1% of the total of the loan. 250 dollars a month for a 4300 dollar loan is ridiculous. absolutely.
QUOTE
i was told by the department of education that the minimum they would accept for rehab was 1% of the total of the loan. 250 dollars a month for a 4300 dollar loan is ridiculous. absolutely.
I agree, I think they are just trying to play hardball to collect all they can before turning the account back over to the OC. I can't wait to hear what the Dept. of Ed has to say about them refusing payment on the loan.
I'll continue to update on this thread as things progress.
Look for the next installment of "Young and Defaulted" coming soon, to a monitor near you!!
Ok, I was so tired of waiting for the next update, that I actually registered just so I could ask for an update!
(btw, just made 12th payment to VanScrewU and am annoyed that I got suckered into two 350 dollar payments for months 1 and 2.) :evil:
(btw, just made 12th payment to VanScrewU and am annoyed that I got suckered into two 350 dollar payments for months 1 and 2.) :evil:
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