HELP!!!! Can the terms of a student loan rehab be changed at 7 months by Great Lakes????

[Anonymous]

I have a 70k Direct Loan serviced through Great Lakes that I defaulted on. I just negotiated a loan rehab with them today with a GREAT monthly payment. BUT, they told me that at 7 months I would have to submit all my financials again and if I make any more money than I do now, they would have to start the rehab all over again (meaning another 9 payments)at a higher monthly payment!!!!! So, potentially I could make 7 payments and then they could start the clock all over and I would have to make another 9 payments. So instead of the rehab taking 9 months it could take 16. Can they do that????????????

[delayedinsanity]

We're about to attempt rehab on two smaller loans my wife has, one with great lakes and the other with DOE... from what I understand of the process, they cannot change the terms once you've entered into rehab and that is not only unethical, but against the letter of the law that permits rehabilitation. I may be corrected on this, that's just what I understand to date.

Did you get an agreement in writing prior to entering rehab, or was it a verbal agreement?

[winstars]

I too am interested in the answer to your questions...

[IOBA]

creditinthecrapper - I think what they were trying to convey is that after 7 months of payments, they will ask you to submit updated financials.   The updated financials will determine what your payment will be for the following 9 months after they review it.

I don't think it can or would restart the clock.  They should be reporting payments as on  time, if you make them on time, once you start rehab.

Hope this helps.