Rehabilitation has to wait a year after AWG???? Why?

[sfcastro77]

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?

 

 

[scvbd99]

If it's a federal loan that you've never defaulted on before, you are eligible to begin rehabilitation immediately.

 

Many of us on here have completed rehabilitation while we were under AWG.

 

What is the total balance on the loans with Texas Guaranteed? Is it $4k or so?

 

And how much on top of the AWG can you reasonably afford per month with your current income and expenses?

[sfcastro77]

It is 41,188 with Texas Guaranteed... with AWG I am paying $420 a month. This is 15% of my income. I spoke with two different reps who tell me I have to wait till October. They are Stafford loans. They both also said that I will only need to pay in $20 a month when I do rehab because I already pay a lot through AWG. I am using any extra money I have in building my credit and saving for PFD's. Should I pay more into the student loan?

[sfcastro77]

Okay I have found someone on another website who also was told by Texas Guaranteed that they must wait the year. They went to the Ombudsman for help so I am doing the same thing. I will post here to tell you all what happens with it. I can't find any where on TG's website where it states I must wait a year.

 

Here is the website that I found that mentions this:

 

http://ficoforums.myfico.com/t5/Student-Loans/Administrative-Wage-Garnishment-AWG-TG/td-p/2774073

 

TG a few years ago told me that I couldn't Rehabilitate till I paid $5000. I never did because I just don't have that kind of money. So now their latest thing is making people wait a year.

 

I will post here for anyone else that has this issue. I hope the Ombudsman can help me out.

 

 

Funny thing SCVBD99..... You were the one who helped this person. So in a way you helped me just on a different site....LOL. Thank you.

Edited March 18, 2014 by sfcastro77

[scvbd99]

Really glad to help.

 

There are some servicers/collection agencies that are very easy to deal with when it comes to rehab, and others that willfully try to deceive borrowers. Only those of us who have actually gone through the process understand.

 

It sounds like rehabilitating is a great idea for you. Your best bet is to go through the rehab process, paying what you can on top of the AWG for the 9 monthly payments. They have to go by what you can fairly and reasonably afford given your verified expenses, which includes the AWG. Rehabbing will remove the default/collection status on the current tradelines, and then create brand new tradelines for the previously defaulted loans, and then from there, you can decide how you want to handle your repayment.

Edited March 18, 2014 by scvbd99

[almostanonymous]

Whoever told you this information was definitely trying to pull one over on you. Looks like you've already gotten the right advice in this thread, but you are entitled to start rehabilitation immediately. I finally got my act together and rehabbed my loans once I went into AWG for only one month.

 

When you do speak to Texas Gauranteed and get your terms squared away, you may be able to reduce your AWG while concurrently making the necessary rehab payments. I was being garnished about $400 a month and was able to get it reduced to $50.

[sfcastro77]

Funny thing happened.... the Ombudsman called me.... well I teach high school and I didn't want to answer my phone in front of students nor should I. So I let it go to voicemail. There was 2 voicemails from them...

 

One for me wanting more information.

 

The second one.... she obviously thought she was calling maybe TG???? She left a detailed message about me and my case and added stuff that I didn't even say. She said I said I couldn't afford the AWG. I never said that, but if it helps why not.

I guess I better let her know that her message got in the wrong hands.

 

I kept calling back only to get her voicemail.... She only works from 7:30-3:30 ET and since I am on Mountain Time....I just may call her at 5:30 AM.

 

Thank you all for helping me. I will keep posting until I get what I want which is to not wait to rehab, but rehab now.

[scvbd99]

Whoever told you this information was definitely trying to pull one over on you. Looks like you've already gotten the right advice in this thread, but you are entitled to start rehabilitation immediately. I finally got my act together and rehabbed my loans once I went into AWG for only one month.

 

When you do speak to Texas Gauranteed and get your terms squared away, you may be able to reduce your AWG while concurrently making the necessary rehab payments. I was being garnished about $400 a month and was able to get it reduced to $50.

Nice. Great stuff. I didn't realize it was possible to get AWG reduced like that.

 

I was an salamander and let myself get garnished for almost a year before finally starting rehab. It took Williams and Fudge calling one of my coworkers to get me going.

[scvbd99]

Funny thing happened.... the Ombudsman called me.... well I teach high school and I didn't want to answer my phone in front of students nor should I. So I let it go to voicemail. There was 2 voicemails from them...

 

One for me wanting more information.

 

The second one.... she obviously thought she was calling maybe TG???? She left a detailed message about me and my case and added stuff that I didn't even say. She said I said I couldn't afford the AWG. I never said that, but if it helps why not.

I guess I better let her know that her message got in the wrong hands.

 

I kept calling back only to get her voicemail.... She only works from 7:30-3:30 ET and since I am on Mountain Time....I just may call her at 5:30 AM.

 

Thank you all for helping me. I will keep posting until I get what I want which is to not wait to rehab, but rehab now.

I'm a high school teacher, too.

 

Do you teach at a public school? If so, you can do Public Service Loan Forgiveness after you get your loans rehabbed. Talk to us about it when you're at that point.

 

Good luck!

[sfcastro77]

 

Funny thing happened.... the Ombudsman called me.... well I teach high school and I didn't want to answer my phone in front of students nor should I. So I let it go to voicemail. There was 2 voicemails from them...

 

One for me wanting more information.

 

The second one.... she obviously thought she was calling maybe TG???? She left a detailed message about me and my case and added stuff that I didn't even say. She said I said I couldn't afford the AWG. I never said that, but if it helps why not.

I guess I better let her know that her message got in the wrong hands.

 

I kept calling back only to get her voicemail.... She only works from 7:30-3:30 ET and since I am on Mountain Time....I just may call her at 5:30 AM.

 

Thank you all for helping me. I will keep posting until I get what I want which is to not wait to rehab, but rehab now.

I'm a high school teacher, too.

 

Do you teach at a public school? If so, you can do Public Service Loan Forgiveness after you get your loans rehabbed. Talk to us about it when you're at that point.

 

Good luck

Yes....I work at a public school. I teach 9th and 10th grade English.... how about you? I have looked into Teacher Loan Forgiveness, but only briefly because I wanted to get out of default first. From what I have read, I don't see anything that stipulates that I couldn't try for the loan forgiveness...as long as the loan is in good standing. I will have to find out when I get there.

 

What do you teach? What grades?

[scvbd99]

I teach English also. All HS grades.

 

There are two different ways that teachers can get loan forgiveness. One is if you teach at a Title I/low income school. You can get $5000 forgiven with that.

 

But there's also Public Service Loan Forgiveness, which you can get if you're a public school teacher, full time, at any school. If you make 120 on-time payments, the balance of your loans is forgiven, and right now, you don't have to pay the tax on the forgiven portion. To qualify, your loans have to be in good standing (which they will be after you finish rehab), and they must be under the Direct Loan Program. If your original loans were FFEL loans like mine were, then you have to consolidate them into a Direct Loan. I can definitely help you with that once you get to that point.

[sfcastro77]

UPDATE:

 

The Ombudsman's office called me. The representative told me that she will be working on my case and that she said she sees no reason for making me wait a full year from the point of AWG to be able to rehabilitate. She says she will call TG and ask them why they are asking for the waiting period.

 

She asked me if I said anything about not being able to pay... ABSOLUTELY NOT!

She said that maybe it is in reference to some changes that will be made in JULY, but there is nothing in those changes that would constitute a wait she said.

 

So I don't see why I have to wait. I think she will work it out. HOPEFULLY! Fingers crossed.

Edited March 19, 2014 by sfcastro77

[sfcastro77]

YEAHHHHHHHHHHHHHHH!!!!!

 

The Ombudsman came through for me. She put me in touch with another ombudsman with TG and I start wage garnishment as soon as i send in my first payment of $20 this will be in addition to the wage garnishment of $420.

 

I am so happy that I could burst. Thank you all for setting me straight that it is not okay for TG to make me wait to rehabilitate.

 

[almostanonymous]

Great news!

 

Congrats and good luck on your rehab journey. Those 9 months will be over before you know it.

[hodap2001]

Good job!