Rehab
Date: Fri, 03/30/2007 - 23:43
Rehab
My bf student loan was in default. Last Feb he set up a payment plan with the collection people. He authorized them to take the payment out once a month for a year over the phone. On his 11th payment stub, it said you have "one payment left till your loan is rehabilitated." It also said to wait for written notice of that happening. He's not gotten a single thing from them in the mail since, and the collection agency isn't reporting timely to the DOE, so they took his tax refund, saying he was still in default.
And even htough his agreement to debit the money is done (as we waited a few days to see if it was coming out and it never did), he's still sending the payments so as not to default again.
They also call all the time, and one call the other day the person on the phone said they needed info, only thing I verified was the correct address, which they already have, she said the payments needed to go through them and not where he was sending them, even though the paperwork and money 'coupon' states that address to send payment too, and that comes from them. She then tried to tell me that the rehab letter was "returned in the mail" and so on.
But I need to know is there rules and laws regarding rehab and what they have to do? what's the next step? Help!
Are collection agencies required to send you that notice of rehab?
And even htough his agreement to debit the money is done (as we waited a few days to see if it was coming out and it never did), he's still sending the payments so as not to default again.
They also call all the time, and one call the other day the person on the phone said they needed info, only thing I verified was the correct address, which they already have, she said the payments needed to go through them and not where he was sending them, even though the paperwork and money 'coupon' states that address to send payment too, and that comes from them. She then tried to tell me that the rehab letter was "returned in the mail" and so on.
But I need to know is there rules and laws regarding rehab and what they have to do? what's the next step? Help!
Are collection agencies required to send you that notice of rehab?
Well, you boyfriend is still in default and it sounds like he ne
Well, you boyfriend is still in default and it sounds like he needs to become a little bit more proactive with his loan.
Student loan rehabs went to 9 payments last July so his rehab should have been completed early winter. He is making his monthly payments so he is qualified, unless his overall balance has dropped below $1000. He needs to call them and tell them to send out the rehab agreement now.
Quote:
and the collection agency isn't reporting timely to the DOE, so they took his tax refund, saying he was still in default. |
This has nothing to do with the CA not reporting payments. The tax offset list is submitted to the IRS in Oct/Nov of last year....he was still in default at that time. Also where is he sending his payments too?? Greenville TX??
Provided his balance is over $1000 and all of his payments have been on time, he qualifies. If the calls to the CA do not result in a rehab agreement being sent out, he needs to contact the student loan ombudsman. That information is in the sticky section at the top of this forum.
