PDA

View Full Version : Help!! Rehabilitation Question

Stressin'
11-24-2003, 09:06 PM
When a student loan, Dept of Ed, is in default and has been turned over to a collection agency, NCO, who rehabilitates the loan? The Dept of Ed is telling me that rehab is done through the collector, but I was always under the assumption that it was done with the OC.
Dept of Ed is not helping me at all and telling me that I must now go through NCO. Who handles the rehab?

Thanks!
Stressin'
11-24-2003, 09:50 PM
One more question I want to add.. when doing a rehab is a downpayment required? If not, do you have a link that can prove it? I think I've been screwed over by the CA :evil: (suprise suprise!!) and I need proof to back me up!

Thanks again!
matt2402
11-25-2003, 05:16 AM
Hi Stressin'

I recently rehabilitated my loans and I'm thrilled with it. My loans were held by Sallie Mae. I didn't work with them, I worked with American Student Assistance who was the guarantor. ASA had a CA after me, but I ignored them and worked directly with ASA. I'm not sure if NCO is a guarantor or a CA. You can check out ASA's website : www.amsa.com

I'm not sure if this helps, but I hope it does. My rehab went well. They said I'd need to make 12 consecutive payments, but after nine, they said I was eligible to rehab. Then, they sold my loan and I've been current on the loan every since...has helped a lot. My monthy payments totaled about 1% of the total amount due on the loan, and they don't require a down payment.

Hope that helps. Let me know if you have more questions.
Stressin'
11-26-2003, 07:09 AM
Hi Matt - Thanks for getting back to me. I appreciate you taking the time to do so.

As for the guarantor, I believe it is with the Dept of Ed, with whom I had the original loan with. My rehab is currently going through NCO, though I'm unsure why it isn't through the Dept of Ed. I also feel that NCO is taking advantage by making me put down a large downpayment. :evil: In the research I've done so far, nowhere can I find that a downpayment is needed.

Whatever the case, I feel good about getting back on track again. As I'm sure you're just as happy that you rehabed your loan! Thanks for the website referral. I'll have to check that out.

Thanks again and have a great holiday!