I've talked to the CA and tried to get into rehab but they wouldn't let me without a 10% down payment. I said I couldn't afford that (3,600) and the person I talked to said he couldn't lower that amount any. He got his supervisor on the phone and the supervisor just yelled at me and then hung up. I can't afford the whole 1% right now, but I can in June and I tried to explain that to the rep and the supervisor, but they said that I was being uncooperative and they couldn't work with me. What happens when you get sued for SL debt? Am I totally screwed?

Federal loans generally do not sue. They can garnish wages without a court order.

If you read this forum, you will see that no downpayment is required by law to rehab an account. If you cannot do the 1% payment you can request a "reasonable and affordable" payment plan. You will need to do a financial statement of all household bills/expenses and income. If they refuse you, you simply tell them you are going to contact the student loan ombudsman because they are not following the rules of the Higher Education Act.

They said they are going to sue because I don't have a job and they can't garnish my wages. They already take my income tax returns. I did start doing the household bills/expenses with them but then the guy got mad and hung up. Today they said that they are suing because I've refused to talk to them and have been ducking them. I said I have been talking to you guys for months and the woman said that it hadn't been documented at all. She said she would talk to her supervisors and see if they could get the litigation stopped if I would agree to their terms. I think I will probably need to contact the ombudsman. Thank you.

I would definately contact the ombudsman. CA's dont and legally cant sue. FDCPA violation.

Who is the collection agency?

Is this a government or private loan?

Has to be a federal loan since they took the taxes.