Defaulted Dept of Ed loan now with Allied Interstate
Date: Wed, 02/25/2009 - 10:00
Defaulted Dept of Ed loan now with Allied Interstate
I am sure you have answered all these questions. I have read the forum and this is very informative stuff, thank you for moderating it. My questions are these regarding the rehab:
I have agreed through a CA to start repaying my defaulted loan. My issue is that they are demanding that I supply my checking account info over the phone. They assured me that they would not be withdrawing money and the Dept of Ed would be doing so by sending my bank check authorizations. So my question is, why wouldn't i be able to send the Dept of Ed these checks directly? Also, is the amount of the 9 payments deducted from my balance once these payments are made? If so, I will go with as high a payment as i can afford. If not, I will agree to pay the required amount only....per the forum, 1%.
I have read that I do not have to pay a down payment to qualify. I agreed to pay this down payment before i read the part in the forum that you dont have to. I have not yet signed anything, so am i committed to this? I am looking at a fax from them agreeing only to $350/MO for 9 months. Nothing about a down payment. 1% of the balance would be about half of the $350. Am I risking being rejected from the program if I calmly refuse to pay the down payment? Further, do I risk rejection if I try to go for the 1% minimum?
Thank you so much for your attention!
Willy
They can ask for any down payment they want but as long as it is
They can ask for any down payment they want but as long as it is not a condition of rehab, it is legit. You cannot be rejected from the program...however if you agreed to it outside the rehab they can hold you to it. If you have the available funds, making a downpayment is always a good idea. Your payment will be applied to collection fees, interest and then your principal balance. So lowering your balance is always a good thing.
Your checking info will be keyed into the DOE database...but since you are assigned to the CA, you need to cooperate.
thank you
Thanks a bundle for the quick reply...the timing was unbelievable as I just got off the phone with them. I'll give the nuts and bolts below...
I have agreed to pay $350/Mo. My "down payment" of $850 was split up to two payments of $425, payable at the end of this month and next month. What seems too good to be true is that these $425 payments will count as the first two payments of the 9 month rehab program. So I will only have 7 payments of $350 starting at the end of April! Which is great, but none of this was on the paperwork I received, which has me believing it's too good to be true.
I gave them (Allied) my checking info over the phone and authorized $425 to be taken out this Friday and it is set up where I need to call in to authorize the remaining 8 payments for them to withdraw the funds.
Could you put my mind at ease?
1. Are they (Allied) bound by agreements over the phone through a governmental body? and/or is the, "...an attempt to collect a debt.." caveat they give you allow them to deceive.
2. The DOE are actually the people withdrawing the funds and not Allied, correct?
3. There isn't some law located in a bureaucratic wasteland that allows them to withdraw different amounts based on funds available, is there?
When I am done typing this I am going to check my statement, and if my account is $0, I will be moving to Mexico.
Again, a sincere thank you...or maybe muchas gracias!
