topic Re: Diversified Collection Services Student Loan in Student Loans

Diversified Collection Services Student Loan

redsox2011 — Tue, 07 Feb 2012 15:43:27 GMT

Hi All - First off, wanted to thank everyone who provides advice on this site. Since I joined last summer, I have gotten a public record judgement deleted from my reports and also had two other accounts removed with pay-for-delete agreements. My score has risen from the high 500s to around 650.

The very last step I have, and of course I saved the best for last, is my student loan issue. I have a defaulted student loan that was with the Dept of Ed and taken over by a collection agency, Diversfied Collection Services. DCS has placed a wage garnishment on me, and for the past two years, I've had roughly $400/month taken from my work paycheck. and have about $30,000 left to pay off. I've read a ton about student loans on here, and a lot of it is really complicated. My big question is:

1) Does the collection agency HAVE to agree to a nine-month rehabilitation program if I agree to enter into one? I understand I would have to make 9 monthly payments on time along with the garnishments. Money would be tight, but I can afford to do this.

Is there anything else I can offer to rid myself of the garnishment? I can't afford to pay it off in full, but I can offer more money than the garnishment. Wouldn't they want more money? Or are they just happy with the garnishment so they don't even care.

Any advice on how to tackle this would be appreciated.

Re: Diversified Collection Services Student Loan

IOBA — Wed, 08 Feb 2012 05:49:31 GMT

I have read that other posters have had success with the CA's agreeing to a 9 month rehab program. It's worth a try. :)

If you offer more money to the CA, they would accept it. But be careful with that. Make sure you can afford to give them extra.

Let us know how things progress...

Re: Diversified Collection Services Student Loan

UC1212 — Tue, 29 May 2012 21:07:50 GMT

Hi, I joined this group because I am in the same situation you are in. I am at a loss, it's been over a year since the garnishment started and I have yet to get a statement or know for sure if I can deduct any of the interest that has been paid to that company- DCS. They fooled me, and so did Justin at "Student Loan Recovery", I paid them $500.00 to get all my loans consolidated, and they said they would stop the garnishment, before it started. Nothing happened, how did you get things back in order? I have the exact amount garnished and that amount owed to DCS. Thank you.

Re: Diversified Collection Services Student Loan

IOBA — Fri, 01 Jun 2012 02:00:06 GMT

UC1212 - if you are paying the CA, the interest is not tax deductible. It would be if you were paying the lender directly.

As far as I know, there is no fee to consolidate your loans.

As for the garnishment - that can only be done with a court order. The court order would have specifics regarding the garnishment. Have you gotten a copy of it? If not, then ask payroll for a copy or go to the courthouse and get a copy.

Re: Diversified Collection Services Student Loan

MonkeyMan333 — Tue, 12 Jun 2012 20:28:14 GMT

There are other options to handle garnishments and defaulted loans. Basically, you have to remove the default status in order to make sure that your loans aren't being garnished for. One way is to consolidate. I did it through a company that is accredited, however I'm not able to post the name or number due to this sites terms and conditions. Message me, and I'll be able to let you know the company that helped me. I had a pretty heavy garnishment of 25% from this one CA that was pretty mean. They handled it in about 8 weeks, and then got all my loans into one and on a feasible payment arrangement. Let me know, I'll get you their information.

Re: Diversified Collection Services Student Loan

mc445 — Wed, 13 Jun 2012 22:36:41 GMT

Hello,

I came across this post, and though you have probably contacted DCS by now, I just wanted to give you some advice based on my experiences with them. They are easier to work with than I thought they would be, but it has been really difficult to get them to update my credit report, etc. now that I have completed my rehab. I have to call them all the time, and even then they don't do everything I ask them to.

Also, according to the Dept. of Ed., it showed that a few payments of my payments were missing, even though I had paid them. The way DCS' automatic payments showed up in my bank statement, they didn't have enough specific information to "prove" that they were payments made to DCS. If I had had cancelled checks, I could have resolved it with DOE right then and there. But because DCS signed me up for a direct debit program, I had to have DCS update the information in the system for me. Which was another long wait.

I also have the direct number for a supervisor there, if you end up having to take care of your rehab. yourself, after the 9 payments like I did. For some reason, whenever you call the 800#, it always put you thru to your assigned rep., so getting a supervisor's number was pretty exciting. :)

Just a few things I wanted to let a fellow Red Sox fan know!

Re: Diversified Collection Services Student Loan

debtsbegone — Mon, 18 Jun 2012 07:09:40 GMT

i am messaging you b/c you were kind enough to offer the name of the company that helped you. I am dealing with this DCS people too, I didn't realize what? they took over all people who have student loan debts? It's ridiculous. I am not being garnished and i've been offered the 9 month deal, but my loans are at 12%! and i owe more now than when i took out the loans, b/c of all the deferments, interest, penalties, etc. I would greatly appreciate your help. thank you so much.

Re: Diversified Collection Services Student Loan

becky22 — Fri, 29 Jun 2012 19:27:42 GMT

Hi. I have just recently gotten a garnishment put in place against me for student loans. Do you know if they have to consider your household size and income or can they just garnish the flat 25%. Any help or information you can give me would be greatly appreciated. Thanks Becky

Re: Diversified Collection Services Student Loan

IOBA — Sat, 30 Jun 2012 19:12:46 GMT

becky22 - if there is already a garnishment in place, not much you can do about it other than pay it. You have missed the opportunity for those things to be taken into consideration. For there to be a garnishment, then the OC/CA had to sue you in court and win. Then when there was no payment forthcoming based on the judgement, the OC/CA would have to go back to court and ask the judge for a wage garnishment.

If you have NOT gone to court yet, for the initial case, then you do have the opportunity to try to negotiate the amount. Either the CA or the judge may take into account the other factors.

You can ask the OC/CA to accept less, but that may require another court appearance since the garnishment is a court order.

Re: Diversified Collection Services Student Loan

dashui — Thu, 05 Jul 2012 17:54:12 GMT

Hello,

Did your defaulted loans get consolidated? Would you mind telling me what company or bank did it? I currently have a few defaulted loans that I need to get consolidate.

Thanks in advance for the help!

Re: Diversified Collection Services Student Loan

nflfan — Tue, 31 Jul 2012 23:23:32 GMT

Can you send me the supervisor name and number. My rep is less then helpful. I set up a payment plan over a year ago and was told about the 9 month rehabilitation plan. After 9 months I call my rep and was told the Dept of Ed was backed up. 4 months later NOTHING. I think it is time I talk to someone over him.

Re: Diversified Collection Services Student Loan

redsox2011 — Mon, 06 Aug 2012 13:53:21 GMT

MC445- Thank you for the info. I am actually two months into my rehab now. I would love the supervisor's # if you have it. The rep at DCS was actually really helpful and I negotiated a very fair payment plan. I just want to stay on top of them and make sure when my rehab is up, my credit report is being updated as timely as possible. Thanks again

Re: Diversified Collection Services Student Loan

nflfan — Tue, 07 Aug 2012 16:40:51 GMT

The Department of Education is finally updating their computer systems. I have been paying for 12 months. Spoke with the Dept of Ed yesterday and she manually marked my accot for rehabilitation. Just waiting on my packet.

Re: Diversified Collection Services Student Loan

mc445 — Wed, 08 Aug 2012 07:00:29 GMT

Hello and welcome.

For everyone's privacy and security personal information such as full names and direct phone numbers are not allowed to be posted. You are welcome to use the PM (Private Message) function for that.

MarineVietVet, myFICO moderator

Re: Diversified Collection Services Student Loan

beppie — Sat, 22 Sep 2012 17:23:06 GMT

can you email me the information. i think im about to be in the same boat and idk how to fix it. I thought my parents were paying on my student loans, turns out they were not and they were hiding the loan letters from me :( so now i have a defaulted mess, but i can't afford the payment. i could pay them something, but not near the amount they want. what can i do? please help.

Re: Diversified Collection Services Student Loan

redsox2011 — Sat, 30 Mar 2013 14:31:02 GMT

Just wanted to update this thread with where I stand today. I entered the rehabilitation program with DCS on 7/2/12 and just made my 9th payment on 3/2/13. I spoke with DCS and they let me know they have sent all info to the Dept of Education saying all payments were made. The Dept of Education has told me they agree with this and we are now waiting for my loan to be picked up (by Sallie Mae or another lender) and that this process usually takes 30-60 days from the time the 9th payment was made. Does this sound kosher with everyone? I just want to make sure I'm not missing anything. Nothing has been updated with my credit reports and my wages are still being garnished. I imagine this will continue until my loan is picked up. While I'm waiting for the loan to be picked up, does anyone have suggestions as to anything else I could be doing at this point? Or just sit tight and wait?

Re: Diversified Collection Services Student Loan

InvincibleSummer3 — Sat, 30 Mar 2013 14:41:33 GMT

No, this is exactly normal. I know it's hard but hang in there and be patient. I'm in the same boat, actually - my last payment was 3/15. But I rehabbed 4 other loans last year so based on that I can tell you that this is the process. I've called once a week or so, just to check in - but largely only because I want to make sure I know when and if they're going to take payments out of my account.

Good for you for finishing, BTW! Congratulations :smileyhappy:

Re: Diversified Collection Services Student Loan

redsox2011 — Wed, 17 Apr 2013 14:30:01 GMT

So I am officially out of rehab! My loan was picked up by FedLoanServicing about a week ago. I just got off the phone with them, where I set up a new payment plan (less than I was paying in my rehab). They also told me they report to the three credit bureaus at the end of the month, so as long as I make my first payment in the new agreement (which I am doing today), they will report as pays as agreed. Feels great to be done with this whole ordeal, and hopefully by month's end I will finally see the work paid off with a nice jump in my credit score.

My advice for anyone in rehab is to just stay in touch with the collection agency, dept of ed, etc.....Just make sure everyone is on the same page. I actually had no issues with the collection agency (DCS) and it seems as though FedLoanServicing is very easy to deal with and their website is great. The speedbumps I hit (while minor) were with the Dept of Education themselves. They are clueless and you get a different person everytime you call!

I'll keep everyone posted on how the scores turn out at the end of the month. Thanks to all on this board for all the advise you gave to myself and others looking for help.

Re: Diversified Collection Services Student Loan

InvincibleSummer3 — Wed, 17 Apr 2013 16:03:27 GMT

Yay! Congratulations!