SOAPLADY can you help?

If that was your first contact with DCS, they were doing what they are pretty well required to do. I would suggest calling back and telling her based on your hours at work you cannot get a loan. Actually telling you to get a loan is prety dumb in these times since no one is getting unsecured personal loans, particularly with a default on your credit.

No down payment is required for rehab....nowhere in the Higher Education Act is there a requirement for a downpayment....they CANNOT make it a condition of the rehab program. Another thing ...."SHE" cannot garnish your wages. A collector may not threaten to garnish personally ....only the garnishment unit can so this and it this was your first contact, you would not be in the garnishment unit yet. You are entiled to "reasonable and affordable" payments under the higher education act...reasonable based on your balance and affordable based on your income. If she wont make more reasonable arrangements, tell her you will contact the student loan Ombudsman office.

Thanks SoapLady for responding back. That was the first time I spoke with DCS regarding my matter and was willing to answer there questions. I have told her about my current situation with my finances, but she wouldnt hear it. She just kept saying "I will deny you rehab and start garnishing your wages". I have also mentioned that I wasn't required to give a down under the Higher Education Act, her response back was, it doesn't apply to you, I asked her why and she says well going through your credit report you are behind on all your bills. I told her what can I do, it's hard to get a steady job, but I am trying to make things right. She still didnt want to hear it, she demanded that I need to pay that down by Wed. or I won't get approve for rehab. I have also contacted the Department of Ed regarding my loan and also complained about DCS unwillingness to help, they told me if DCS continues to not help give them a call back and they might be able to work something out. I will be contacting DCS this Wed regarding my loan and tell them I am unable to get that deposit or that personal loan for that deposit, hopefully it will work out. But if it doesn't I will tell her what you mentioned above. Thank for your help and wish me luck. If you have any more advise please let me know.

Student loans are not credit based so her looking thru your credit report is an empty threat. She is making up rules as she goes along and denying you your rights under the Higher zEducastion Act. I would be calling back, be polite and basically tell them calmly, you violated the law and your contract with the DOE, and if you do not cooperate, I will simply call back the DOE and the Ombudsman's office. End of subject. I have seen the DOE contracts...massive document but violations of that contract and complaints mean points off for that agency which means less accounts placed and of a poorer quality.

Soap lady,
It didnt work. I just spoke to DCS and they still denied me for rehab. They said since my parents own a million dollar home, which they don't, that house isnt even under there name, I get the down from them. I them that my sister is just renting that house, then I told them i will recontact DOE and the Ombudsmen that shes not willing to help, her respose was "go ahead" She then says "well i will go ahead and start garnishing 15% off your wages and hung up.
I then called DOE and re explained to them what was happening and someone I spoke to last Monday told me to call back if it continues. He says he can't help and refers me back to DCS garnishing something. I told him I don't want to call them back since they are unwilling to help. He says again he can't help.
Im pretty frustrated now.... How long does it start till they garnish my pay? And is it every pay period?
.maybe I'll just quit my job... I will be working for nothing anyway...
Thanks again SoapLady

She cannot just go ahead and garnish your wages....it just doesnt happen that way. First you have to be sent a 30 day notice....this gives you time to appeal the garnishment based on hardship. Also what you parents own....that is none of her business.

You now need to file a complaint with the Ombudsman office...http://www.ombudsman.ed.gov/about/contactus.html

You can file yoru complaint right there online.