Student Loan Default Rehabilitation **bleep**? I'm confused HELP!!

[GREENRAGE5]

I'm curious and suspicious about the Subject program. I'm curious mainly about the regs surrounding CA, in my case Performant (aka

Diversified Collection Services - DCS). I've observed in the ASA (American Student Assistance) letter dated April 12, 2013 the hyper-insistence of

payment in full; as well the hyper-inflated interests, fees, court costs, etc,  plus the principal by the CA. I'm suspicious because CAs by

nature only want money! Record keeping for 9 months; notifying Dept of Ed. and suggesting after the 9th payment late TLs are removed [from

student loan(s)]. May I have a reality check please?

    I'm very curious what obligates a CA to: follow thru with timely and accurate payment recording; updating payment compliance to

Dept of Ed.; does the CA remove the TLs after the final payment; how long after the 9th payment are the TLs removed? I'm curious about my

rights (State of IL ); do I have any? Does the CA have a maximum interest or fee charge(s)? Is it true neg TLs aren't removed until the rehabbed loan is sold; and the CA is paid the extraordinary fees plus the principle by the new grantor; also the old TL from OC remain?

 After the 9th rehabilitation payment; then what? My concern stems from an earlier post mentioning even after finalizing the rehab program, the CA still garnished his wages!?! I understood wages, social security and tax returns can't be garnished w/o court notice, or is that no longer the case? I'm suspicious about my privacy rights concerning the CA, many have been known to sell lists, share personal identifiable info and "loot" bank accounts under the guise of "garnishment" [even tho the debtor is in the rehabilitation program] for more money w/o direct written permission.

    I want to use default rehabilitation, there's so many moving parts; seems like CAs can do whatever they want. Considering the costs of phone calls, and inability to contact "real" managers. How do I tract Dept of Ed payments? 

[InvincibleSummer3]

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@GREENRAGE5 wrote:

I'm curious and suspicious about the Subject program. I'm curious mainly about the regs surrounding CA, in my case Performant (aka

Diversified Collection Services - DCS). I've observed in the ASA (American Student Assistance) letter dated April 12, 2013 the hyper-insistence of

payment in full; as well the hyper-inflated interests, fees, court costs, etc,  plus the principal by the CA. I'm suspicious because CAs by

nature only want money! Record keeping for 9 months; notifying Dept of Ed. and suggesting after the 9th payment late TLs are removed [from

student loan(s)]. May I have a reality check please?

    I'm very curious what obligates a CA to: follow thru with timely and accurate payment recording; updating payment compliance to

Dept of Ed.; does the CA remove the TLs after the final payment; how long after the 9th payment are the TLs removed? I'm curious about my

rights (State of IL ); do I have any? Does the CA have a maximum interest or fee charge(s)? Is it true neg TLs aren't removed until the rehabbed loan is sold; and the CA is paid the extraordinary fees plus the principle by the new grantor; also the old TL from OC remain?

 After the 9th rehabilitation payment; then what? My concern stems from an earlier post mentioning even after finalizing the rehab program, the CA still garnished his wages!?! I understood wages, social security and tax returns can't be garnished w/o court notice, or is that no longer the case? I'm suspicious about my privacy rights concerning the CA, many have been known to sell lists, share personal identifiable info and "loot" bank accounts under the guise of "garnishment" [even tho the debtor is in the rehabilitation program] for more money w/o direct written permission.

    I want to use default rehabilitation, there's so many moving parts; seems like CAs can do whatever they want. Considering the costs of phone calls, and inability to contact "real" managers. How do I tract Dept of Ed payments? 

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My payments to the CA when I rehabbed showed up on the DOE's Default Resolution website (myeddebt.com). The law as related to the rehabilitation of defaulted student loans says that after rehab, all mention of a previous default is removed from the debtor's credit report. As you may have read here, results sometimes vary; some agencies will remove a tradeline completely, some will only remove the default information, and there are often delays in the updating post-rehab.

I haven't seen the thread to which you are referring (garnishment post-rehab) but to be honest, there were not many other options for me. I didn't have the money to pay in full, and wanted to avoid an eventual garnishment. My rehab experience was generally positive, and I got the results I wanted.

[kjel]

I also completed rehab recently, for the most part it has been trouble free.

I defaulted on two consolidated federal loans, one subsidized and one unsubsized. Collections charges and fees were added to the balance in pretty significant amounts that pushed the debt over 6 figures.

I rehabbed through CBE Group who were generally helpful. I made $50 monthly payments although my family size/income allowed me a $15 payment, I elected to make the higher payment so the eventual increase wouldn't hurt so much. My payments went directly to Dept of Ed and they posted to my account which I could view at www.myeddebt.com. I believe you can also pay through that website as well. My loans were picked up by Nelnet who started reporting almost immediately, the collections fees were removed from the balances, and Nelnet reports the same opening date as the original loans. I have an IBR plan with $132/monthly payments.

My TLs before rehab looked something like this:

Consolidated Direct Loan Subsidized 1/2011 $0, Transferred Closed (displays the 30, 60, 90 lates under payment history)

Consolidated Direct Loan Unsubsidized 1/2011 $0, Transferred Closed (displays the 30, 60, 90 lates under payment history)

Consolidated Direct Loan Subsidized 1/2011 $XX,XXX.00, Status 180+ Past Due, Collection Account

Consolidated Direct Loan Unsubsidized 1/2011 $XX,XXX.00, Status 180+ Past Due, Collection Account

After rehab:

Consolidated Direct Loan Subsidized 1/2011 $0, Transferred Closed (displays the 30, 60, 90 lates under payment history)

Consolidated Direct Loan Unsubsidized 1/2011 $0, Transferred Closed (displays the 30, 60, 90 lates under payment history)

Nelnet/Dept of Ed Consolidated Subsidized 1/2011 $XX,XXX.00, Paying as Agreed

Nelnet/Dept of Ed Consolidated Unsubsidized 1/2011 $XX,XXX.00, Paying as Agreed

The collections account tradelines were removed in my case.

[MoreCowbell]

Wages can be garnished for defaulted student loans without the collector going to court . 

Just a few months ago the Obama administration helped borrowers out by abolishing the program under which the Dept. of Education used to pay higher commissions to collectors who got higher payments from borrowers. Now, collectors get a flat rate no matter what the size of the payments they get. That should encourage collectors to work with borrowers instead of just insisting on high payments.