10-21-2013 06:15 PM
So, here is the situation that I am in.
I am rehabbing my student loans. When I decided to do rehabillitation for my loans I thought that rehabillitaton would pick up all of my loans. This didn't happen. One of my perkins loans was not picked up when I did rehab, so I guess one of my questions was, Why wasnt this loan picked up?
So the other question I have is this... my perkins loan was transferred to a group called RAB INC. Regional adjustment bureau. I am reading my statement from them and they want to collect $3839.24. What priority do I make this loan? I am already rehabilitating my student loans and I have collections that I am trying to PFD, and if I start to pay on this loan, I will have to take the money out of the money I am setting aside to PFD those collections. If I start to pay this loan, even if the loan is years old, does it show on my credit report that I am making payments like it will on my student loans that I will rehab? Where this loan is so old, when I pay it off, does it get knocked off my credit report, or does it stay there for another 7 years? I have so many lates from student loans on my report by now I just want them all gone. I thought that this is why I went into rehabilitation..
Also, every time they transfer a loan, the old one is seemingly still on my credit reports, still accruing lates, with the new company also reporting lates... How is this fair?
Anyway, hopefully you will be able to help me.
10-21-2013 06:32 PM
Something else that gets me about this whole thing, is that it seems that they charge for EVERY method of payment I can do. They charge 10 dollars to pay on the phone, 10 dollars to pay with a credit card and a "small fee of" $9.95 for the "convenience that we provide in allowing you to pay this debt more quickly than you could by sending a check.". So they want me to make payments but they are going to charge me every time I do??? This certainly does not want to make me pay them. I hate these kinds of people..
10-21-2013 10:34 PM
Perkins loans are a slightly different animal from other federal loans because they are actually made by the school from a pool of revolving capital held by that school. Because of that, your Perkins loan is almost always serviced by a different lender than your other loans and is often transferred to a different collections agency when it defaults. You can still rehab them, but you have to contact the CA that holds the loan and make arrangements with them the same way you did for your other loans.
Like your other federal loans, this isn't going to go away. It can continue to be resold and reported on your credit indefinitely, and your wages and tax returns can be garnished to pay it. If you can delay some of your PFDs on older collections, especially those that are outside the SoL, that will hopefully give you enough room to get started on the rehab. If you just pay the loan outright, the negative information will stay on your report for 7 years from the date it first went late and never caught back up that lead to the default.
When a loan is transferred from a servicer to a CA or from one CA to another, the tradeline should be marked closed, transferred, sold (or something similar) and the history for the account should stop at that point. Going forward, the new servicer/CA can continue to report the status of the loan as late until you bring it current. You may want to head over to the National Student Loan Data System (nslds.ed.gov) and see exactly what loans you have and who currently holds them. That may help you sort out if there are errors on your report.
As far as charging for payment methods, it seems that they should offer at least one or more methods without the "convenience" fee, have you pressed them to share all of your options? Can you pay by check, or have them automatically debit your bank account?
10-23-2013 06:08 AM
Thank you SCF.
I didnt realize that perkins loans had to be rehabbed separately from the other government ones. Too bad they couldnt just lump them all together.
The DoFD loan is more than 9 years old in this case, so if I pay it outright, they would delete the loan from my entire credit history, correct? Would it still auto-delete after I paid it off through rehab, or would it stay on there for 7 years?
Anyway, I appreciate the fast response,