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Rehab directly with ED, not CA, and paying before agreement made

Valued Member

Rehab directly with ED, not CA, and paying before agreement made

I have four FFEL (Stafford) loans currently in default, with a total balance of a little over $6,200.00.


The EDDebt website says that they are currently assigned to Allied Interstate (AI) as the CA.


The only CR that has an entry for these loans is Experian, reporting all three as held by US DEPT EDUCATION/GSC/CHI, and none of my other CRs show either ED or AI as reporting the debt.


IMO, AI's reputation is well-deserved, and if I don't have to deal with them, I prefer not to. If I do, it's got to be in writing. 


Over the weekend, I wrote to the ED with an offer to enter into rehabilitation. Has anyone else taken this approach? If so, what was your result? Did they just throw you to the CA? If anyone has an e-mail address or name of a reasonable person to deal with at AI, I'd appreciate a PM with the details.


My other question is: would I be doing myself any favors by going ahead and making payments directly via Pay.Gov in the absence of an agreement?


I mean, it can't hurt to pay down the debt, but would I be able to claim the payments made before the rehabilitation agreement? From what I've read here, I think most likely not: the point is to see if you can abide by the terms of the rehabilitation agreement.


Thanks for your input.

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Message 1 of 4
New Member

Re: Rehab directly with ED, not CA, and paying before agreement made

hey, I was reading your message and wanted to attempt to do the same and submit my own rehab request.  Did you get anywhere with sending your own?

Message 2 of 4

Re: Rehab directly with ED, not CA, and paying before agreement made

I don't believe past payments count towards rehab programs. Your best bet would be calling the department of education before your wages get garnished. They will tell you what to do next. In my own experience, I had around 13,000 debt with federal student loans including interest and late fees, called the department of education and they gave me number of the people in charge of my account. through them i was able to enter a rehabilitation program. they asked me a few questions about income, rent, assets, and determined a montly payment that worked for me. Through the settlement the extra interest and late fees would be removed once the rehabilitation program was completed. The payments were made for ten months and after that my account was bought by a lender who I then created a payment plan with. My negative marks were removed from my credit report entirely and my account is now in repayment on a ten year plan through the new lender. I dont know if any of that helped at all, but that's how my default was handled. Everyone was extremely helpful and friendly and my overall experience was very positive.

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Message 3 of 4
New Member

Re: Rehab directly with ED, not CA, and paying before agreement made

I am default and assigned to stupid Allied.. Dept of Ed will not handle my rehab request as I have asked twice, stupid Allied will not respond to send me this written offer. I say offer because someone from there contacted me to offer it making $5 a month payments. I did not agree right away as my income has just begun to garnish and I was afraid if I agreed they would turn it around on me and make it look like the garnishment wasnt a hardship if I was making additional payment with that.
Message 4 of 4