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My dh called his student loan servicer (Great Lakes) on 4/8/14 because his loans are in default and he wants to start the rehab process.
Great Lakes told him he is *not* in default, and only will be when they say so. A quick check on nslds says ALL of his loans ARE in default.
Today he received a letter from Great Lakes saying that he has been approved and is now in 60 day forebearance. He didn't ask for a forebearance-he wants to rehab and stated that very clearly to them.
What gives? Any insight on how he/we should handle this?
It would be unusual for loans that are in default to still be handled by the serivcer - normally they are transferred to a collection agency when they do move into default and the collection agency handles any arrangments for rehab. I wonder if perhaps it has been put into forbearance so that it can be transferred to a new servicer or collection agency?
Have you asked them specifically why the forbearance was applied?
My oldest loans were with Great Lakes and they were my only loans to not be in defualt. My situation was different in that I don't think they were listed in default on the NLDS system. But I know when I went into forbearance they were updated to being current on the NLDS site and Great Lakes was wonderful about extending my forebearance until I completed my rehabilitatioin with the other lenders that were willing to work with me. I just finished rehab and am about to start repayment on the Great Lakes loans next month. I still have 4 loans left in default from TG held with the collection agency Regional Adjustment Bureau. They want double the monthly payment than anyone else asked and are just awful to deal with. I would love it if those loans were with Great Lakes.