My two SLs (~$25k total) were way in default, ACS was harassing me, then I got the Dept. of Ed. "we're going to garnish your wages" letter. Uh oh. That motivated me.

So I get on the horn with DoE, find out what to do, fax in my Financial Disclosure along with all my bills, etc., and get a call from an ACS person a few days later saying my proposed monthly payment of $125 would be acceptable. After six months of payments, the account would be reviewed.

The next day I get on CB, read a bit about rehabbing, call ACS back, tell her I want to get into this "rehab" program so I can salvage my credit. My rep tells me that I can get into the Rehab program, but I'll have to pay an additional $50 per month--bringing my $125 monthly payment up to $175. "I'll have to eat Ramen Noodles every day for the next year, and my kids will have to play in the streets naked, but I'll do what ever it takes for find an extra $50 a month," I say. "Let's do it."

Over the next few days I read some more on CB, call my rep back, and ask her if she can send out some official paperwork stating I've entered the rehab program (because I read a lot of posts by spooked people who have made 12 monthly payments yet weren't sure they were officially in the program--even though you don't have to be "officially" in it).

She tells me there is no such official paperwork. I'm just "in" the program, and my loan will be automatically rehabbed after making 12 payments.

POINT BEING: because I didn't read up on CB before jumping on the phone, I got swindled into paying $175 per month for rehabbing, when they originally offered me $125 per month. Plus I still don't have any verifying paperwork.

Eat your Wheaties and read, read, read your CB, folks!

bryan

Don't worry, Bryan -- I'm even more of an idiot than you are!!!! I also panicked. Went through negotiations and got them down to $500 (owed WAY more than you) and was told they agree to that amount and that they'd also "review" my account in 6 months. They called me back in 6 months and said that they had an offer from DOE that if I would increase my payments to $785/mo :shock: , I could consolidate after another 6 months. Agreed, ate ramen 6 days/week (on the 7th day I treated myself and had Kraft mac & cheese!!). Got another "we accept this payment amount" letter with the new amount from DOE. Didn't even know about rehab until it was too late. Now I may have to fight to prove that I did it since I had never said anything about rehab b/c I didn't know about it (I just finished, so I'm waiting a couple of months to see if the default falls off).

So, just to let you know that you're not the only one!!! But, I bet I made you feel better!

Neither of you are idiots... lol. It's a shame that the rehab program is available, yet so many students don't know about it and underhanded CA's don't mention it. However, the HEA and the CFR SL regulations do NOT require that you have an official agreement. It's nice, but not mandatory. All that is required is proof that you made 12 monthly, consecutive, on-time payments. So if push comes to shove, you should be able to prove that you did indeed rehab your loans.