Ombudsman
Date: Mon, 01/26/2009 - 07:49
Ombudsman
I contacted the Student Loan Ombudsman and told them that a Collection Agency is insisting on $550 per month to rehibilitate. I have tried and tried to work with them to no avail. I explained that my monthly income is less than $1500 and I have 2 children. When I told them that I knew I was entitled to "reasonable and affordable" payments in complience with government standards, they Laughed and said that reasonable and affordable meant nothing to them and that $150 (what I offered) was not reasonable on a $50,000 loan.
Then Ombudsman told me that they could do NOTHING because a collection agency has it. I thought that was what they were for???? I have applied to consolidate with Direct Loans. Which is the place that currently has my loans, their rep told me that it should not be a problem, but it would take 4-6 weeks. I don't know what to do to keep the CA off of my back and furthermore I am confused about what the Ombudsman does. I thought they were suppossed to help??? By the way is it normal for DL to consolidate more than once, my only loans are 1 sub and 1unsub. Apparently they are my only hope. If they garnish me I will get FIRED. I know they say you can't be fired for that, but employers can find a reason to fire you. I'm at my wits end, I thought the ombudsman would be my last resort, now I have found I don't have a last resort.
Thanks for providing such a helpful service. You probably don't realize how much you help people, but you really do an amazing job.
Actually $150 on a $50K loan is not reasonable to rehab....there
Actually $150 on a $50K loan is not reasonable to rehab....there is no way you could demonstrate that the loan would not re-default after consolidating.
i am surprised at the ombudsmans remarks....I have referred many people and they have helps with reasonable and affordable.
what happens if i do the rehabilitation at 500 a month and say a
what happens if i do the rehabilitation at 500 a month and say after the first or second payment I am notified that I have been consolidated? Will I then be able to stop the rehab. They told me that if I don't do something today they are sending garnishment. Help fast
You dont even qualify for rehab until you make the 9 payments...
You dont even qualify for rehab until you make the 9 payments....so basically you are simply in a repayment plan towards rehab. There is no program to get into or out of.
Send them a small payment...tell them they have your financials and it is in black and white as to what you can and cannot do. Even if they send you to garnishment, that gives you 30 days. Then you respond to the garnishment notice for an appeal...that gives you another 2 weeks. Your consolidation should be done by then.