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I called Van Ru to schedule repayment. They had previously sent me documentation regarding my debt, but I missed placed it. Everything was going well until they asked for a "good faith" payment. Actually he called it an "involuntary" payment. He told me I wouldn't be able to receive any more documentation or begin the rehabilitation unless I submitted a payment. Thanks to CB I knew there was no legal obligation to pay so I told him that. He agreed and sent me to his SMOOTH talking manager. (I mean like butter) These professionals are so hypnotic. He gave me the run around with all this pseudo-legal mumbo-jumbo and "almost" accusations (very very subtle, so smooth) that was just effective enough to erode my confidence to stop pressing as adamantly as I had initially started. He agreed that I was not obligated but somehow got me to agree to receive an email as a "meet in the middle" and got off the phone with me. So, all I want is them to send me the paperwork to verify my income and read the agreement in writing before I pay. I know paying "good faith" would expedite this process and the payment is low, I mean really, really, low but it's the principle of it. I don't want to be pushed around by CA's. This is the beginning of my journey to fix my credit so I see this as a practice run. Am I correct about the good faith payment? Any suggestions about dealing with smooth talking CA's? I'm not a d**k and I don't want to be one. I just don't want to do what I don't have to do. Simple. Any advice is appreciated. Thanks. I'm calling the ombudsman to verify this as well. Dunno if thats the right person to call. Guess I'll find out.

So I have 41,000 dollars in defaulted student loans. I have been under AWG since September 2013...they take out 15% of my net which comes out to 420.00 a month. I want to rehabilitate the student loans so I call TG (Texas Guaranteed) which is my CA and they tell me that I can't start the process for an entire year after I first had AWG. So that is the bad news because I want to start building my credit now. I have 8 separated student loans (per semester of college) and the TL's are killing my credit score. The good news is the person giving me this information told me that since I pay so much I will only have to pay $20.00 a month for 9 months on top of the $420 AWG. That shouldn't be hard, but the wait is going to kill me... My question is: Is there any possible way that this is incorrect information? Why does one have to wait an entire year after AWG started to start rehabilitation? Is there any way around this or am I stuck waiting?

Hi all, Hoping to get clarification, suggestions and assistance from those of you with some experience. I am currently rehabilitating my student loans, and am making payment number 5 next week actually. Last year, my taxes were offset and I lost my rather substantial refund. No fault but my own of course, but now I'm on the straight and narrow so to speak and handling things properly as well as working on my credit. I was concerned that this would happen again this year, and have been doing some digging online. I found the IRS automated offset info number and called it today. It states that my taxes indeed "may be offset this year". So I called the US Dept of Education number provided by the IRS line. Worked through the automated stuff on there end, which didn't provide alot as it just referred me back to the collection agency rehabbing my loan. Managed to get a real person, who verified they were aware that I was making payments and verified the correct number made so far. I explained that I was concerned my refund would be taken this year as well as the fact that things are rather lean in my household and I wanated to do anything possible to assure I received my refund. Honestly I can't afford to lose it, as we're pretty much paycheck to paycheck at this point. She was polite and explained that the US Dept of Education would take any tax refunds until the rehab was complete, and had been transferred to a loan holder. She also said at that point it would take the new loan holder about 30 days to send notice to the Dept of Edu, and then it would be another 30 days (minimum) for this info to get from the Dept of Edu to the IRS and have them take me off the tax garnishment list. Adding all of that up, it will be over 7 months before it "might" be possible to come off the IRS list. Is this correct? I mean I understand that I heard it directly from the US Dept of Edu person, but I've seen postings on here ( One on the main page as I write this...) where people have gotten off of the IRS list after 4 payments. I've also read a discussion where the collection agency sends a verification letter to the Dept of Education to "de-certify" ( wrong term? ) the tax offset. Any help would be greatly appreciated. I had truly hoped that here in a few weeks I would be able to get out of this hole I'm in once and for all as I've worked hard to pay off all old debts, and am trying to do things right. But I'm barely scraping by at the moment. Thanks for any and all guidance.

Hello! This is my first post so bear with me if this questions been asked & answered somewhere else. Here's a little bit about my situation: -I defaulted on a student loan that was originally serviced by National Collegiate Trust-- transferred to NCO Financial Systems and I contacted them as soon as I realized the loan was in default. (I know it sounds stupid but I had moved so many times and underwent multiple, expensive tragedies that year and I regret it going into default so badly...) -I immediately set up a payment plan of $200.00/month in August of 2012-- I've been making monthly payments since that time. At one point I asked the NCO rep (the one assigned to me is quite mean and very rude to me every time I call her) about rehabilitation and she told me that was not possible. -I looked at my Equifax today and realized that on my CR the debt is still listed as "180 days past due" with no reflection that I have been making payments. I asked the NCO rep this morning about this and she said that nothing could possibly be changed on my CR until the debt ($21,000) is paid in full. All of my other student loans, car payments, accounts are in good standing and I make all the monthly payments as arranged. 1. Is this rep right about rehabilitation? I know that there are differences in rehabilitation for private vs federal loans and this is private, so I'm thinking it may not be possible to rehab it? 2. Is she correct about nothing being able to be done with my credit report to reflect that I do make monthly payments? I am unable to make a payoff of the $21 K at this time-- It's hard enough to make the 200 a month with all of my other expenses. I am hoping to save in the next few years to pay this darn sum at once! 3. I have no idea how consolidation works, but I do have federal student loans as well as 2 additional private loans-- would consolidation be a helpful option for me? Thank you so very much for any help you could give me in this regard! E

So, I finally got GC Services to agree to rehab my student loans that were in default for a few years, they sent me the paper work to return and its says the collection cost are 18.5% which is $1,045 added to my Principal Balance. Is this normal? I'm not sure if I should be signing it? Any advice would be appreciated! Thanks!

Need advice badly CB! I have a student loan from NYHESC which has been in default for the past few years. I tried to set up payment arrangements, but NYHESC is sending me to the collection agency GC Services, they agreed to take $55 a month, but they want to put me on the William D Ford Program for 4 consecutive months, which I believe is a consolidation loan. GC Services claim they will restore my credit and remove the offset with the IRS. Currently, I am unemployed, so they are also asking for my husband's last 3 pay stubs which I find to be absurd. Should I ask for the rehabilitation program or hardship program and insist I can only pay $55 a month OR just accept what they are offering me, also why should I send my husbands his pay stubs? This is all new to me but I want to clear it up so they do not continue to take my husbands tax returns. Any advice will be appreciated. Thanks!