09-04-2012 04:32 PM
My loan is no longer being handled by ACS - they handed it over to another company who has now doubled the amount of my monthly payment. The new company says that they have right to do this (with no notice) since I am obligated to pay off full amount within 10 years of the day I 1st. consilidated my student loans in 1994. I went into the loan rehabilitation program a few years back thru Brazos and my payoff date was 2023. The new company has moved the date up to 2017. I have not defaulted since entering the rehab program. I was granted 2 forbearances for a few months due to medical issues when I was unable to work, but my monthly payments were increased after each forbearance to offset this. From what I can understand when reading student loan rehabilitation agreement regulations (in particular - 682.405) - I should be allowed the maximum amount of time to pay off student loan as is allowed for consolidated loans, with the time beginning on the date that I began rehbilitation payments - not the original date of defaulted loan's consolidation. Also, I believe that the amount of years allowed to pay off outstanding balance is to be based on be the dollar amount that I owed on loan (with all interest and fees added) after making payments on time for the first consecutive 12 months. The amount that I owed at beginning of rehabilitation program was in the thirty thousands - from the original twelve thousand dollars that I owed when I first consolidated loans. The regulations that I am basing my interpretations of law on are: 34 CFR 682.405 and 674.39. I don't know how to handle this situation - the new company handling my loan says they know nothing about student loan rehab and when I asked them to send me the paperwork on my loan - they again sent me promissary note from when I first consolidated loans - nothing from my rehab agreement.
I truly want to honor my debt and have no problem paying the increased total amount due to all the added fees and interest. I actually located the loan on my own so that I could begin repayment. This is when I found out I could do this thru rehab program. I now feel duped. I also cannot afford to make this large payments that new company is demanding and am afraid that it will ruin my credit, which I've been working so hard to repair.
Thanks so much for your time and any suggestions.
09-07-2012 10:26 AM
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.