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New Contributor
cp94550
Posts: 70
Registered: ‎11-05-2011

Ahhh! SL rehab horror gone wrong!

Last year I contacted the Department of Education regarding my defaulted student loans (4 to be exact).  They said that the account had just been sent to a collection agency (First Premier) and to contact them.  Gave them a call and inquired about the rehab process.  They said that I qualified for the rehab and that I would need to make 9 on time payments.  This was in November of 2011.

 

Fast forward to August 2012.  First Premier calls me and says they have some paperwork to send over to me in order to complete the rehab process, along with making my last payment.  Make my payment, fill out the forms (don't remember exactly what it was... uh oh), and they say everything is good.  Now I just wait for a new lender to pick me up.

 

September 2012.  Call First Premier to check status of rehab.  They said that the account has been sent back to Department of Education and that they can not access any information.  Contact Dept. of Ed. and inquire about rehabbed loan and am told that it has been sent to Direct Loans and that the old negatives will be removed within 45 days.

 

October 2012.  Call Department of Education to inquire about baddies falling off from completion of rehab and am told... wait for it........ that I never rehabbed.  My loans are still delinquent.  Instead, I consolidated?!?  Explained what I had done, asked for help, they referred me to Direct Loans.  I'm getting mad at this point.  I call Direct Loans and explain everything to them.  They say the same thing.. according to their records I have simply consolidated, not rehabbed.  If that's the case, where did my 10 payments go?  They refer me to the Department of Education Ombudsman Office. 

 

So I give them a call, explain my situation, and they will have an "ombudsman specialist" contact me within the next 7-10 days to try and help me out.  I feel like I got taken advantage of by First Premier.  Like they told me I would be rehabbing and then swooped in a consolidation at the last minute.   I'll keep everyone updated on how things are going.


Starting Score: 560 on 11/1/11
Current Score: 578 on 10/04/12
Goal Score: 650 for starters

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Senior Contributor
laz98
Posts: 4,291
Registered: ‎09-06-2008

Re: Ahhh! SL rehab horror gone wrong!

Have your balances gone down as a result of your payments?  What did your paperwork say?

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Regular Contributor
InvincibleSummer2
Posts: 171
Registered: ‎06-15-2012

Re: Ahhh! SL rehab horror gone wrong!

[ Edited ]

Have you logged into myeddebt.com? Or the NSLDS website?

The reason I ask is that First Premier isn't listed as one of the contracted collection agencies on the Default Resolution Group's website. Which may not mean anything, but given that all of this other weirdness is popping up I'd be inclined to see if your payment were listed someplace besides the collection agency.

 

ETA - There is a Premiere Credit, but First Premier seems to be a credit card company.



New Contributor
cp94550
Posts: 70
Registered: ‎11-05-2011

Re: Ahhh! SL rehab horror gone wrong!

In my rage I types First Premier. In reality it is Premiere Credit. When I get home tonight I will go through my paperwork to see what I signed and find my original contract stating I was rehabbing.

Starting Score: 560 on 11/1/11
Current Score: 578 on 10/04/12
Goal Score: 650 for starters

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Regular Contributor
InvincibleSummer2
Posts: 171
Registered: ‎06-15-2012

Re: Ahhh! SL rehab horror gone wrong!

Did you find anything out? I was reading yesterday, and Premiere Credit actually sounded like one of the agencies that had their act together, relatively....

 

Fingers crossed for you.

 



New Contributor
cp94550
Posts: 70
Registered: ‎11-05-2011

Re: Ahhh! SL rehab horror gone wrong!

Haven't heard anything yet.  And of course I can't find any of my paperwork.  My wife and I just had our first child 1 month ago so our house is a little unorganized and I haven't had much time to search, so I'm hoping!  

 

I'm waiting to hear back from the ombudsman specialist.  What someone I spoke with said is that what may have happened is the consolidation paperwork came through before the rehab paperwork came through.  I'm hoping that is the case and they get things figured out.


Starting Score: 560 on 11/1/11
Current Score: 578 on 10/04/12
Goal Score: 650 for starters

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Regular Contributor
InvincibleSummer2
Posts: 171
Registered: ‎06-15-2012

Re: Ahhh! SL rehab horror gone wrong!

Wow. That is crazy. I was thinking about you in particular because when I started rehabbing my last student loan (Perkins) the collection agency kept asking if I wanted to consolidate rather than rehab. I said no, thinking that although a rehab would take longer I would eventually get a little better credit score out of it since the default would be removed.  So two months into the rehab - I get a form offering to "consolidate this loan". I was a bit surprised, and didn't fill it out because again, I don't want to consolidate. Thanks but no thanks, fellas. But if I hadn't looked at it closely I might have just done it on accident.

 

I'm curious if you've checked the myeddebt.com website. All of my rehab payments showed up there. Are you seeing documentation there of your payments at least?

And congratulations on your new little one, BTW!



New Contributor
cp94550
Posts: 70
Registered: ‎11-05-2011

Re: Ahhh! SL rehab horror gone wrong!

Thanks!

 

On myeddebt (which I just found out about within this past week... I must be out of the loop on this stuff) does show my payments, so the money did get applied.  

 

At this point I'm convinced that I signed paperwork to consolidate, but it was my understanding that I was just completing the necessary steps for rehab.  Premiere Credit told me "We'll be sending you some paperwork that you need to sign and send back in order to move forward with the rehab."  I know nothing about rehabbing so I just assumed filling out the form was truthfully the next step.

 

I'm just hoping it turns out in my favor - successful rehab.  Otherwise what was the point of me doing a "rehab" for 10 months if I was just going to consolidate and lose out on the perks of rehabbing?


Starting Score: 560 on 11/1/11
Current Score: 578 on 10/04/12
Goal Score: 650 for starters

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Regular Contributor
InvincibleSummer2
Posts: 171
Registered: ‎06-15-2012

Re: Ahhh! SL rehab horror gone wrong!


cp94550 wrote:

Thanks!

 

On myeddebt (which I just found out about within this past week... I must be out of the loop on this stuff) does show my payments, so the money did get applied.  

 

At this point I'm convinced that I signed paperwork to consolidate, but it was my understanding that I was just completing the necessary steps for rehab.  Premiere Credit told me "We'll be sending you some paperwork that you need to sign and send back in order to move forward with the rehab."  I know nothing about rehabbing so I just assumed filling out the form was truthfully the next step.

 

I'm just hoping it turns out in my favor - successful rehab.  Otherwise what was the point of me doing a "rehab" for 10 months if I was just going to consolidate and lose out on the perks of rehabbing?


Exactly. Given that the rehab payments are showing up, I suspect that could work in your favor if you do indeed end up pursuing this through the Ombudsman. Keep us posted.


 




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