Allied or DOE repayment.. HELP
Date: Tue, 11/27/2007 - 12:30
Allied or DOE repayment.. HELP
Hope some one can help, I have a $11,000 student loan
that is in default, this month I started to Rehab the
loan I sent my first payment so I called Allied
interstate who holds my loan. They told me that I
have to sign a Document that says I have to pay 10
payments, NOT 9 of $115.00 a month, 3 them 3 names of
My family or friends as a reference so if I don’t
stick to this payment and drop out of site and never
Call them back they will call and harass them About
why. About the 3 names… I called the Department of
education to find out if I have to do the 3 names and
could they set me up with a Payment plan, and she
said YES and NO about the 3 names, so she said she
will send me out a promissory note to sign. My
question is 1).can I pay them less than The $115.00?
2).is there a time limit to pay it? 3).the 3 names
do I have to sign Allied promissory note and just
sign the DOE one??? 4).The DOE or Allied is NOT on
any of my credit reports… are there any chances of
them putting it on them???? thanks
Well, whoever you talked to at the DOE is as dumb as a stump. S
Well, whoever you talked to at the DOE is as dumb as a stump. She CANNOT send you a prom note until you completed making the full 9 payments. She also is not suppose to be discussing anything with you....she is simply suppose to refer you to the CA....it is written into their contract with Allied.
Allied is permitted to ask for new references. They will be transfered to your final prom note when THEY send it out. As for the harrassment issue, your references are only called for location information if you disappear. So don't disappear on your loan...that will solve the problem.
The rehab agreement you would be signing now is really not worth the paper it is written on....it is simply a temporary arrangement letter that of your intent. The 10th payment is a possible "bumper" payment...somethings it takes more than 30 days after the 9th payment is made for the rehab to fund and a 10th payment is necessary. Any documents that Allied sends out have all been approved by the DOE.
1).can I pay them less than The $115.00?
$115 is a standard 1% payment. It is dead on.
2).is there a time limit to pay it?
Pay what?? The entire loan?? The rehab payments??
3).the 3 names do I have to sign Allied promissory note and just sign the DOE one???
You need to follow what Allied is telling you. If you balk, you could end up with Allied garnish your wages.
4).The DOE or Allied is NOT on any of my credit reports??????? are there any chances of them putting it on them???? thanks
Allied does not report. There is always a possiblity that if this is a newly subrogated loan, it could go back on your report. How long ago did you default?
thanks Soaplady
Thanks for the info, the time limit thing is for the
entire loan??????? sorry I did not make that clear. And as
far as the credit report It was NEVER on my credit
report!!! I Graduated in 1984 and started paying in
1988 until 2003 and my Default was in 2005 until now.
Do you know any thing About after being in default
does the loan go to another company, which might
make my payments higher, thanks.
Well if you defaulted, it most definately should be on your cre
Well if you defaulted, it most definately should be on your credit report for the 2005-2012 period.
I would assume that since your loan is early 80's that you have a FFELP loan. Who is your guarantor? (ie...who is Allied collecting for.) I dont Direct Lending was around back then.
Your loan will go to another lender and the payment will remain it around the same...could go up or down a bit.
Soaplady can u please help me with this one???
I looked at the rehab letter Allied sent me, I????????m not sure how high
it will go after my 9th payment?? Can u help clear this up this
what it says word for word??????? ???????Waiver of Option to Consolidate
Dear Mr.__
I hereby decline to apply, at this time, for a Consolidation
Loan to payoff the defaulted loan(s) which I am now repaying to the
Department of Education. After I make the required payments, I
intend that the Department sell my loans to a lender. I understand
afer that sale, my loans will be considered rehabilitated. I understand
that the monthly payments I will be required to make to the lender after
the sale may be substantially larger than the payments I would be
required to make if I were to obtain a Consolidation Loan for this debt
and if I were to make use of the longer repayment periods allowed for
Consolidation Loans. I understand that I am free to apply for a
Consolidation Loan at any time in the future, but merely state that I
decline to do so at this time.??????? And then they ask me to sign it, is this
a common letter and do I have to sign it??? Is this locking me up so
that I am tied to that new lending company??? Thanks again for ur help
I would ignore the letter ...it means absolutely nothing other t
I would ignore the letter ...it means absolutely nothing other than you don't want to consolidate at this point.
Yes the loan payment on a rehab could be higher than what you would be assinged with an consolidation ....when you consolidate with the DOE while in default your payment automatically is calculating on the Income Contingent Repayment plan. However if you are looking to repair your credit, it is always wise to rehab first and then consolidate.