SL Rehab Woes

[Toastmaster]

Hi guys! (and gals!) I was getting garnished and decided to let it go on and just clean up my student loans of $2500. I have $581 left ($428 after tomorrow). I'm trying to fix my credit now and just became aware of rehabbing SL but when I contacted my loan servicer, they said no, it was too little an amount to rehab, and to just let it finished out.

 

After reading around the forums and the Net, I realized that that was a bad idea (if I could stop it). I contacted the Dept of Ed who referred me to the Ombudsman group who referred me to NYS Higher Education (the people who apparently have the collection agency, Windham Proffesionals, garnishing my check)

 

Is it possible that Windham is lying? I haven't been able to find a "minimum" amount under which SL rehabs can't be done, and I will call NYS Higher Ed tomorrow (they were closed by the time I got their number)...........I just want to know if it's still possible to rehab? Or should I just be resigned to having negative tradelines (albeit, one showing paid, the original showing lates)

 

Thanks for your input!

 

[hodap2001]

Student loan Rehabilitation takes 9 months to complete and based upon your current balance due...you only have a few more months of payment remaining to pay off your balance. I did the difference between your current balance and your expected balance after tomorrow and I assume your monthly payment is $153.00. With Rehabilitation you have to make a payment on top of your wage garnishment amount. So they are not lying to you...your just a bit too late to request Rehabilitation based upon your current balance...it's just logical mathematics.

 

Good luck to you!

[Toastmaster]

Do you suggest I consolidated this small amount into my other Student Loan ($1500)? Would this look better on my credit report then a paid collection SL account and the nagative original Student Loan tradeline?

[hodap2001]

During Administrative Wage Garnishment you might not be eligible to consolidate with your other loan and it takes 60-90 days and by that time your loan would've been paid in full through Wage Garnishment. Just pay it off and let the negatives age off...pay off other debts such as your 1500 student loan, any credit card debt,

and lower your debt to income ratio.

[scvbd99]

If it's under $1000, you can't rehab it.

 

Also, Direct Loan Consolidation creates ONE big new loan. If you consolidate while in default, all of those tradelines will close. You will not be able to remove the default status from those tradelines.

Edited January 18, 2014 by scvbd99

[Toastmaster]

Thanks for the replies. I will add that after talking to Windham again and NYS Higher Ed, I got the distinct impression and info that if I qualified, my minimum payment would be $50 by itself, not $50 on top of garnishment amount. Just a heads up. Thanks again all.

[LynnInMN]

While your are in garnishment, the rehab payments are required over and above the garnishment. Believe me....we know what we are talking about. Even if it was $50 by itself, 9X$50 is $450...you would have no balance by the rehab day.

NYHE should not even be discussing anything with you. They used to be a client of mine and that was written into the contract..guarantor non involvement except for complaint issues.

[Toastmaster]

I hear you, and I appreciate your replies. I just can't believe I waited so long for this and that I'm too late. I also can't believe that no one ever told me about this....third party collectors collecting while (up until recently) allowing them to tell (or not tell) whatever they want.... leaves me, ahem, miffed, haha.

 

At least it's not too late for my spouse, so that's good. And Lynn, that part about NYHE not discuasing anything with me, yeah, that probably explains the guys attitude with me over the phone.....but I just chalked it up to being about "New York" lol. Also, neither entity mentioned the payment on top of garnishment....I believe you guys, I think the system is just set up badly to relay info.

Edited January 21, 2014 by Toastmaster

[Toastmaster]

Again, thanks everyone.