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.
Are these federal loans? Who's handling them now?
Have you looked into income-based repayment? (Or income-contingent, if these are Direct Loans?)