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View Full Version : Minimum Payment to Rehab a Defaulted Loan with a Collection Agency per the Dept of Ed

PoorPerson
04-30-2008, 06:14 PM
Another piece of info the collection agencies don't want you to know about:

http://www.fsacollections.ed.gov/contractors/pcanew/rehab/062806a.htm

Bottom line is that if you rehab your loan paying less than the % they state in the link, the CA looses out. So don't listen to what they tell you! Also, get everything in writing!!!

When you don't get anything in writing, call the Dept of Ed, and they'll explain it to you!

Good luck!
Cynic
04-30-2008, 06:49 PM
Please note that the rules vary slightly by loan type, and that FFELP loans held by a guarantee agency (as opposed to ED) have different rules.

I saw a lady with a 100k balance that was allowed to rehab @ $100 a month. Of course she defaulted again, so it didn't do her any good.
LynnInMN
04-30-2008, 07:43 PM
Another piece of info the collection agencies don't want you to know about:

http://www.fsacollections.ed.gov/contractors/pcanew/rehab/062806a.htm

Bottom line is that if you rehab your loan paying less than the % they state in the link, the CA looses out. So don't listen to what they tell you! Also, get everything in writing!!!

When you don't get anything in writing, call the Dept of Ed, and they'll explain it to you!

Good luck!

Most will not and cannot put it in writing as that would be a direct contradiction of the original prom note. In the end, the CA gets paid out for the rehab anyways, so there really is no net loss.
AboveAverage
04-30-2008, 08:17 PM
Please note that the rules vary slightly by loan type, and that FFELP loans held by a guarantee agency (as opposed to ED) have different rules.

I saw a lady with a 100k balance that was allowed to rehab @ $100 a month. Of course she defaulted again, so it didn't do her any good.

If you default on a rehabbed loan, you're pretty much done, right? (no more rehab, pay up front or deal with garnishment/federal offset)?

That is one second chance I don't want to mess with.
Cynic
04-30-2008, 10:35 PM
You can only rehab once.
AboveAverage
05-01-2008, 08:55 AM
You can only rehab once.

That's what I thought. Thanks.