First all the prerequisite information:
Had approximately $16.5K in Subsidized Stafford loans upon graduating in the Spring of 1998. Defaulted and the guarantor is American Student Assistance. Appeared they took control of the loans in March of 2001 for the $16.5K balance from Wachovia Education Finance. In March of 2007, ASA proceded with wage ganishment with DCS as the Collection Agency. The stated balance due on the wage ganishment for the loans is $28.5K. I should also state that the highest balance reported by ASA on my reports is $22.5K.
So I need advice and information concerning rehab and repayment. Due to the wage garnishment in March 2007, I have repaid approximately $16.5K of my student loans. I want to get the loans out of default so I looked into doing a rehab which would start in April. The garnishment is appox $750/month, while my rehab payment would be $158/month. When I am done with the rehab in December, I would have repaid about $25.4K.
Obviously, I want to pay the least amount while meeting all my obligations and want to get the loans out of default for my credit reports. The CA and ASA are saying that I still owe about $15.8K.
Do I go ahead with the rehab? I read recently that someone had their collection fees waived after completing their rehab. If the collection fees on my account were waived, I would be done replaying my loans before the end of the rehab.
Any advice anyone can give me is appreciated.
Full Version: Need help with Defaulted Loans, CA, and Rehab
QUOTE (cramered @ Mar 12 2009, 12:27 AM) 
First all the prerequisite information:
Had approximately $16.5K in Subsidized Stafford loans upon graduating in the Spring of 1998. Defaulted and the guarantor is American Student Assistance. Appeared they took control of the loans in March of 2001 for the $16.5K balance from Wachovia Education Finance. In March of 2007, ASA proceded with wage ganishment with DCS as the Collection Agency. The stated balance due on the wage ganishment for the loans is $28.5K. I should also state that the highest balance reported by ASA on my reports is $22.5K.
That balance will not include the collection fees.
So I need advice and information concerning rehab and repayment. Due to the wage garnishment in March 2007, I have repaid approximately $16.5K of my student loans. I want to get the loans out of default so I looked into doing a rehab which would start in April. The garnishment is appox $750/month, while my rehab payment would be $158/month. When I am done with the rehab in December, I would have repaid about $25.4K.
Obviously, I want to pay the least amount while meeting all my obligations and want to get the loans out of default for my credit reports. The CA and ASA are saying that I still owe about $15.8K.
Do I go ahead with the rehab? I read recently that someone had their collection fees waived after completing their rehab. If the collection fees on my account were waived, I would be done replaying my loans before the end of the rehab.
You have a FFELP loan....collection fees are not waived by FFELP lenders.
Any advice anyone can give me is appreciated.
Had approximately $16.5K in Subsidized Stafford loans upon graduating in the Spring of 1998. Defaulted and the guarantor is American Student Assistance. Appeared they took control of the loans in March of 2001 for the $16.5K balance from Wachovia Education Finance. In March of 2007, ASA proceded with wage ganishment with DCS as the Collection Agency. The stated balance due on the wage ganishment for the loans is $28.5K. I should also state that the highest balance reported by ASA on my reports is $22.5K.
That balance will not include the collection fees.
So I need advice and information concerning rehab and repayment. Due to the wage garnishment in March 2007, I have repaid approximately $16.5K of my student loans. I want to get the loans out of default so I looked into doing a rehab which would start in April. The garnishment is appox $750/month, while my rehab payment would be $158/month. When I am done with the rehab in December, I would have repaid about $25.4K.
Obviously, I want to pay the least amount while meeting all my obligations and want to get the loans out of default for my credit reports. The CA and ASA are saying that I still owe about $15.8K.
Do I go ahead with the rehab? I read recently that someone had their collection fees waived after completing their rehab. If the collection fees on my account were waived, I would be done replaying my loans before the end of the rehab.
You have a FFELP loan....collection fees are not waived by FFELP lenders.
Any advice anyone can give me is appreciated.
So what would happen if I were able to repay the loan before I made it through the 9 month rehab period? Again, the ultimate goal is to not have negatives on my credit report concerning these student loans.
Thanks!
Thanks!
I'm new here but from what I have read. If you were to pay it off or try to consolidate the loan the negatives would stay on your report I believe. If you were to rehab and complete it, then the negative comments would be taken off you CR's If I'm wrong I know someone will correct me
QUOTE (Feech @ Mar 17 2009, 06:53 PM)
I'm new here but from what I have read. If you were to pay it off or try to consolidate the loan the negatives would stay on your report I believe. If you were to rehab and complete it, then the negative comments would be taken off you CR's If I'm wrong I know someone will correct me
Rehabs remove the guarantors tradeline only. If you had a ffelp loan, using a lender like sallie mae, aes or citibank, those tradelines remain.
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