My BF has 2 student loans that he allowed to go bad.... very bad. I never had a student loan so how all of this works is very new to me. He had a lot of help with all of his paperwork when he applied so i'm not sure that he really understands how any of it works either.
Last month we pulled his credit report together and discovered that the loans were sent to collections. I guess he figured they were deferred (not sure that is the right word.) Not only were the loans sent to collections but his paychecks for 3 months were garnished. We didn't know that he was being garnished because his employer at the time was not giving him paystubs. His paycheck was put into a debit account and he was supposed to be able to access all of his paystubs online but every month there was always some excuse as to why he couldn't get them. Now that he is no longer employed with that company, they insist that they are not obligated to give him access since he received a W2. Fishy but off topic...
In the mean time, he has found a new (temporary) job and just opened a checking account. We are waiting for his current employer to fix some mistakes with payroll and then get him set up with direct deposit. He called about the rehab program and was approved.
The letter he received states that in order to qualify for rehab, all of his payments must be made by direct debit from his checking account. Wanting to start the program ASAP, he called and requested to make payments another way. They told him that any payments he makes other than direct debit will come off of his balance but will not be considered actual rehab payments. That also includes extra payments, i asked because i want to send whatever we can whenever we can to make the balance go down as fast as possible.
They also said that if we get the rehab started soon enough they will not garnish his wages again. If we wait too long and they do garnish his wages they release the garnishment after they receive the 5th payment. Once he reaches the 9th payment the accounts will go into a good status and reporting will change.
This whole thing has my head spinning. I'm not sure that i am understanding everything. It seems pretty straight forward but it doesn't sound quite like what i have read here on the forums and what i've read other places.
Did anyone else have an issue with them only accepting direct debit payments? Does any of this sound strange or incorrect?
TIA
My BF is at work and he just called me from his break. He said HR told him that it will be another 1 to 2 weeks before his direct deposit goes through. This is a pita because his credit union is pretty far away for driving to make deposits. I don't like the idea of authorizing direct debit before we know there will always be funds to cover the payments. By the time we get all of this worked out, he might not have a job anymore.
I really like the idea of them taking the payments off my credit card every month and then i can pay it from whatever account has the money in it. I wonder if they would talk to me about the arrangements without him here. Just about every day he is out the door before business hours and doesn't get home until after everything is closed.
@MidnightJester wrote:Tell you BF to sign up for www.MYEDDEBT.COM It runs and handles Student Loans. It will tell you ALOT
What you owe
Who is Handling the Loans (Collection Agency or lists nothing and it is themselves)
What your Rehab obligations are
what payments have ever been made on account.
DIRECTLY through their portal and website I have made my payment
You could also sign him up with his approval and all the right info it asks.
Call 1800 621 3115 That is MYEDDEBT(Default Resolution Group) They handle the Defaulted student loans through them. If you can give all the security questions to them they might be able to help you with the payment options if it again isnt handeled by a outside collection agency
He tried to log into that site but it says his information is not found. Maybe i can try again for him.
On his credit report it shows AES/PHEAA and he called the number that was listed there to see about rehab.
All of these companies and lenders has me seriously confused. This is part of why i keep pushing my daughter to work for any and every scholarship she possibly can no matter how small it is. She is looking to start early enrollment at a community college next year just to get as many credits as she can before she actually starts college. We're trying to teach her that avoiding borrowing means less headaches in the end.
@MidnightJester wrote:Is it possible his student loans are PRIVATE student loans?? or he Consolidated his loans ever?? I am not sure if they would appear with MYEDDEBT. Others will have to chime in.
On his credit report he has 4 separate listings for student loans that are closed. The remarks show "ACCT CLOSED DUE TO REFINANCE"
Would that mean they were consolidated? jeepers i feel like an idiot. I really have no clue about this stuff.
He also tried making accounts or accessing information on other sites with no luck. aessuccess.org and myfedloan.org
edited for a typo
Well then it looks like we just have to take it for what it is and do what he is told. I was just hoping to make it a little less stressful.
When he called them they said there was no set date until he signs the direct debit form. The first payment must be made within 30 days of the date he signs. He gets to decide if he wants it monthly, bi-weekly or weekly. He can even pick a specific date for each month.
In the end i suppose they did give him some nice choices and we can mail in extra payments.
