I've received a collection letter about student loans I've defaulted on. I plan on talking with the CA tomorrow. Does anyone know how a CA will come up with the minimum they will take on rehab or other payment schedule?

My fear is that the CA will refuse to accept an offer if they find out what I'm making. I do well enough, but my rent costs me 40% of my take-home, my car is on it's last legs, credit card debt, etc.. My salary just sounds bigger than it is. Will a CA take regional cost-of-living into account? Do I have an obligation to tell them who I'm working for and how much I make?

I'm trying desperately to get back on top as far as my credit goes, I've been doing okay with the credit card debt and just started my dispute campaign. I want to pay the student loans off, just not this minute.

Update & more questions:

I called the CA, spoke to a rep who was very pleasant. She said that rehab was an option, that she couldn't approve it, we had to fill out a financial statement to get aproved by her manager.

I say "we" because I asked her if she could send it to me to fill out and she said that was not possible. I imagine they will not go for rehab unless I acquiesce to their demand for information. Are there rules set as to what info they can ask for? Can they deny me a rehab plan if I refuse their requests?

The more troubling thing to me was that she said after 12 consecutive monthly payments, that the debt would be sold to another creditor. I was under the impression that the loan would revert back to the OC, in this case the federal government (stafford loan). Has anyone any idea what they are trying to do here?

They have to let you into Rehab...and they have to accept reasonable payments. The term "Reasonable" is used loosely with CA's..so stick to your guns for a payment you can afford every month for 12 months...miss 1 payment and you start all over.

At the end of 12 months your TL's revert back to Paying as Agreed. And your loan is sold to another lender...MAKE SURE WHEN YOU GET THE REHAB AGREEMENT YOU READ IT AND MAKE A COPY FOR YOURSELF.

DONT LOOSE THE AGREEMENT :shock: