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SOL of Judgements and FSA rehabilitation program

Date: Sat, 03/22/2008 - 10:59

Submitted by anonymous
on Sat, 03/22/2008 - 10:59

Posts: 202330 Credits: [Donate]

Total Replies: 2

SOL of Judgements and FSA rehabilitation program


I have a default school loan. I do owe the debt and have been paying. The default amount to include priciple, intrest and fees was over $16,000 and I have paid it down to just a little over $8000. The original plan was a "rehabilition" program set up by the department of education. Below is the information on the program:

Loan Rehabilitation

You may want to consider rehabilitating your defaulted loan(s). Advantages of rehabilitation include:

Your loan(s) will no longer be considered to be in a default status.
The default status reported by your loan holder to the national credit bureaus will be deleted.
You will be eligible for the same benefits that were available on the loans before the loans defaulted. This may include deferment, forbearance, and Title IV eligibility.
Wage garnishment ends and the Internal Revenue Service no longer withholds your income tax refund.

If you are a Direct Loan Borrower:

To rehabilitate a Direct Loan, you must make at least nine (9) full payments of an agreed amount within twenty (20) days of their monthly due dates over a ten (10) month period to the U.S. Department of Education (Department). Payments secured from you on an involuntary basis, such as through wage garnishment or litigation, cannot be counted toward your nine (9) payments. Once you have made the required payments, your loan(s) will be returned to the Direct Loan Servicing Center.

If you are a FFEL loan borrower:

To rehabilitate a FFEL, you must make at least nine (9) full payments of an agreed amount within twenty (20) days of their monthly due dates over a ten (10) month period to the Department. Payments secured from you on an involuntary basis, such as through wage garnishment or litigation, cannot be counted toward your nine (9) payments. Once you have made the required payments, your loan(s) may be purchased by an eligible lending institution.

If you are a Perkins loan borrower:


To rehabilitate a Perkins Loan, you must make twelve (12) on-time, monthly payments of an agreed amount to the Department. Payments secured from you on an involuntary basis, such as through wage garnishment or litigation, cannot be counted toward your twelve (12) payments. Once you have made the required payments, your loan(s) will continue to be serviced by the Department until the balance owed is paid in full.


Now the problem is, I have done what is required. I have paid the required monthly payment without fail for the past two years. The qriginal loan was only $6000, but the have added over $10,000 in intrest and fees which I am paying.

The education department (FSA) is saying that there are Judgements on the account one in 1994 and the other in 1997 which disqualifies me from the rehabilitation program. If I did not qualify for this then why was I told that I did in the begining causing me to work hard to fulfill the requirement?

The SOL in virginia on a judgement is 8 years. I know that federal school loans have no SOL but that is the loan, not a judgement. The way I see it, the only way to denie me eligibility, is to renew the judgements which I not sure they can since the original state base agency is no longer owner of the defaulted loan.

Another thing I see the word "Garnishment" in the perkins loan. To garnish a wage or bank account a judgement must be in place.

So why is this program effective with Garnishments in place as well as a judgements and I have NO garnishments in place and expired SOL judgements along with meeting the requirement of the program and I'm not elegible for rehabilitation? Someone please explain what I'm not receiving..


Quote:

Now the problem is, I have done what is required. I have paid the required monthly payment without fail for the past two years. The qriginal loan was only $6000, but the have added over $10,000 in intrest and fees which I am paying.

The education department (FSA) is saying that there are Judgements on the account one in 1994 and the other in 1997 which disqualifies me from the rehabilitation program. If I did not qualify for this then why was I told that I did in the begining causing me to work hard to fulfill the requirement?


When I was collecting, we never received judgement information on any file. On the rare occasion that a judgement was in place, we only found out about it when submitting the account for rehab.

Quote:
The SOL in virginia on a judgement is 8 years. I know that federal school loans have no SOL but that is the loan, not a judgement. The way I see it, the only way to denie me eligibility, is to renew the judgements which I not sure they can since the original state base agency is no longer owner of the defaulted loan.


When dealing with student loans, the DOE is always grandfathered in as the owner of the loan, regardless of which FFELP guarantor might have filed the original judement. Either way, the judgements are commonly renewed.
Quote:

Another thing I see the word "Garnishment" in the perkins loan. To garnish a wage or bank account a judgement must be in place.


Nope. Admin wage garnishment can be done without a judgment. Congressional act. However bank garnishments require a judgement.

So why is this program effective with Garnishments in place as well as a judgements and I have NO garnishments in place and expired SOL judgements along with meeting the requirement of the program and I'm not elegible for rehabilitation? Someone please explain what I'm not receiving..


lrhall41

Submitted by SOAPLADY on Mon, 03/24/2008 - 07:01

( Posts: 17315 | Credits: )


But the situation for my case is different.
The default issue is a failure of the two universities or error in the changing automation.

The present work and claims I have in process is enough to cover the fault of the failure of the universities.

The truth I finished several legal cases in finance: Bankruptcy cases: in big amounts: 1.5million, levy notices in 200K.
and other small cases of negative negligence and failures and other reasons.

I am in the process of studying the judicial and state rulings on foreclosures: basing the information on the U. S. Constitution Section 10. 1 No state shall impair the Law on Obligations and Contracts. I am strictly reading the rules on this legal matter to prevent too much paper burden and legal hours in dollar amount.

Sincerely,

Antonina L. Demetrio Viloria, CPA
email: [email]may10nina@yahoo.com[/email]
312.804-3708
ALD SERVICENTER/ Consulting.


lrhall41

Submitted by anonymous on Tue, 08/04/2009 - 12:26

( Posts: 202330 | Credits: )