Rehabilitation Student Loan Default

How much do you owe on the student loan???


Failure to follow thru with a rehab agreement can result in 15% of disposable wages being garnished. Have you been in touch with the ca??

What is ca?
I owe over 60000

CA= collection agency

Did you give them a financial statement??

$500-$600 would be a standard payment for a loan this size. However under the higher education act, you are entitled to "reasonable and affordable" payments....if talking to them, use those exact words. Your other option woud be to consolidate your loans with the Direct Loan program under the Income Contingent Repayment Plan..

I did fill out a financial statement and that was the amount they came up with. I paid liek 1200 up front. And then made one 500 payment. I felt like i was being blackmailed into agreeing to the 500. I jsut wanted to wait until the beginning of the year until my health became better.

Who would i talk to about a income contingent repayment plan?

So after doing a financial statement they determined that you could afford $500 per month???

Information on the Direct Loan Program and rehab is located in the stickies at the top of this forum.

yes i gave them a financial statement but they mad ethe decision before they received the statement....
I havent heard a word from them since I said ic ould not make the 500_ payment... I am scared

If you couldnt afford it , you should not have agreed to it.

You need to call them back and tell them according to the Higher Education Act, you are entitled to "reasonable and affordable" payments.

I tried calling and they told me there was ntohign they could do... what do i do? is there anyway to stop them from sending naything to my employer?

Call them back and ask for a qualified manager. Tell them that you want to rehab and that you are entitled BY LAW to reasonable and affordable payments. If they refuse, tell them you will be filing a complaint with the student loan Ombudsman.

Call and let them know you want to fill out another Financial Disclosure Statement for a repayment amount reconsideration hearing. Fill out the form COMPLETELY do not leave out a single expense you have. Also use the IRS website link which is printed on the first page of the form to get the average expense amounts in your area and use them to help you fill out your form (this is very important!). I have a loan with ACT for 50K and I went through the exact same thing you are going through. My original payments I had to make were over 700 per month. This was until I resubmitted the form for reconsideration. Now my payment is 211$ per month which is very affordable.

Well ACT will not deal with me unless I make a HUGE payment. ALso, they sent something about wage Garnishment. Today I applied for the direct loan program even though i have a FFEL, since ACT will not send me another Financial Disclosure. Is there anything else I can do while I wait for the direct loan reponse? I read that is I fill out a STATEMENT OF FINANCIAL STATUS and send it to dept of ed with a min paymenty that i think i can afford every month that could stop any impending wage garnishment. Help...

What financial disclosure?

Sending a financial statement to the department of ed is a waste of time....they will send it directly to ACT.

They sent you something on wage garnishment....what does it say? This could be your 30 appeal notice...if you do not respond and the garnishment takes affect before your consolidation is completed, you consolidation will be denied.

IT is a notice prior to wage withholding....
What do I DO?

Read it carefully and respond within the required timeframe.

Seems like my only option is for a hearing? Or should I call ACT and beg them again? I am so tired of getting yelled at by them... I woudl prefer to do everthing via email or USPS but everything on their documentation is to call.. I am lost

You MUST respond to the notice. Failure to do so will result in garnishment. Deal with that first.

What do I say? It has check boxes...