Help with Rehab

[MJKIL]

Hello all, I am attempting to tackle my defaulted student loans this Monday and I was looking to get some advice before starting.

 

I had a loan through Direct Loans and it was deferred. After deferment I did not make payments and it went to default. They sold it to a company in NY called Conserve who have been attempting to contact me.

 

I am currently unemployed but I recently got a freelance job which pays me $200 a month. I want to enter rehabilitation. My loans are ~15k but with interest and fees I owe ~21k. I know that rehab is typically 1% of what you owe but I cannot afford that. I feel like I've read that rehab payments can be as though as $50 and I'd like to get that. It wouldn't put a dent in my loans but it would allow me to start the rehab clock while I secure full time employment. Is there any way to reduce the 4,200 in fees?

 

What kind of guarantees do I need to get beginning rehab? I know I should document all interactions, does that include recording phone calls? How fast can I get it started? I'd like to make my first payment in April if possible.

 

After I complete my 9 payments what happens to my loan? Does it transfer from Conserve back to Direct Loans? Or to someone else? What do I need to do to make a smooth transition and get the default removed from my credit ASAP after that final payment?

 

Anyone who has completed rehab: what should I know that I didn't ask about? I'm very nervous about this since I assume that Conserve is not operating in my best interests.

 

Thank you for any help you can provide.

[MJKIL]

I forgot to ask: whoever my loans transfer to after completing rehab with Conserve, will they allow me to do income based repayment. I have a degree but with the difficulty I've had finding a job I assume I'll only be making 25-30k a year so I won't be able to afford more than like $300 a month for a while.

[evapor8ted]

They didn't sell it ConServ is a PCA for ED. When you complete rehab they will go to an ED servicer like Sallie Mae or Nelnet.