loans not eligible for rehab?
Date: Thu, 01/08/2009 - 14:27
loans not eligible for rehab?
Hi,
I have just finished rehabbing a pack of defaulted student loans that were being held by the department of ed.
I even got a letter from the Ford program the other day letting me know that they had been consolidated! Very exciting. My sense of accomplishment was very short lived, however. I got a call from a CA called ICR today letting me know that they were holding two, apparently additional, defaulted Perkins loans that needed to be attended to very quickly or I would have my wages garnished. I didn't even know these loans were still outstanding. I thought I'd just taken care of them all with the rehab program.
I explained that I had just been through a rehab program and that my loans had just been consolidated with the Ford program. The collection agent kept pressuring me to add these defaulted loans to the newly consolidated loans by filling out an "addendum" application with the Ford program.
Here's my question: Is this a good idea?
I asked her about rehabbing these two loans (they total about $13K), but she said that these two weren't yet eligible for a rehab program, even though they are in default. "They aren't at that stage" was the phrase she used. That doesn't sound right to me. If they are getting ready to garnish my wages, wouldn't they be willing to let me enter a rehab program?
These loans have been in default for more than 7 years, so they don't show up on my credit reports.
So here's my other question, what will happen to my credit score after the Ford program starts reporting the newly consolidated loans? Will it go up, because of the creation of a new, positive TL, or will it go down because of the appearance of a new, large amount of debt ($70K)?
Thanks for your help and advice.
I have just finished rehabbing a pack of defaulted student loans that were being held by the department of ed.
I even got a letter from the Ford program the other day letting me know that they had been consolidated! Very exciting. My sense of accomplishment was very short lived, however. I got a call from a CA called ICR today letting me know that they were holding two, apparently additional, defaulted Perkins loans that needed to be attended to very quickly or I would have my wages garnished. I didn't even know these loans were still outstanding. I thought I'd just taken care of them all with the rehab program.
I explained that I had just been through a rehab program and that my loans had just been consolidated with the Ford program. The collection agent kept pressuring me to add these defaulted loans to the newly consolidated loans by filling out an "addendum" application with the Ford program.
Here's my question: Is this a good idea?
I asked her about rehabbing these two loans (they total about $13K), but she said that these two weren't yet eligible for a rehab program, even though they are in default. "They aren't at that stage" was the phrase she used. That doesn't sound right to me. If they are getting ready to garnish my wages, wouldn't they be willing to let me enter a rehab program?
These loans have been in default for more than 7 years, so they don't show up on my credit reports.
So here's my other question, what will happen to my credit score after the Ford program starts reporting the newly consolidated loans? Will it go up, because of the creation of a new, positive TL, or will it go down because of the appearance of a new, large amount of debt ($70K)?
Thanks for your help and advice.
It sounds like you consoldiated defaulted stafford loans. Your
It sounds like you consoldiated defaulted stafford loans. Your perkins are different set of loans and would require a seperate set of rehab payments.....even if the same agency had held both sets, two seperate payments would have had to have been made.
If your perkins are over 7 years, you are risking them being subrogated by the DOE and the negative reporting cycle would start all over again. Personallly, if they are not showing now, it would be in your best interest to add them on to your ford loan now, not later. In your case rehab is a waste of time and will achieve nothing.
