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Stay on top of your rehab payments!


Stay on top of your rehab payments!

I know that rehab/what happens after rehab topics are pretty popular around here, so I figured I'd add mine and throw in some words of caution. These are my experiences using Coast Professional for government student loan rehab. 


First, I had my scheduled ninth payment set for 4/2018. I called in March to make the last payment earlier as you can generally do this to get the transfer process going sooner. When I was on the phone they said sure, but had to verify all my payments were applied correctly and that a final payment early would "count." Well, guess what? They told me I'd only made SEVEN qualifying payments up to that point, not eight. I asked how that could be as I had made eight payments (they verified) and they are the ones that set up the auto-pay schedule. It turns out that the CSR that set up my rehab made the first auto-pay date (second payment as I made one on the phone at rehab start) ONE DAY too early, so I only got credit for one of the two payments. So, here I am with another month tacked on. The CSR was very helpful and validated my frustration and let me make a payment on the phone (now number "eight" though really payment nine) and set up a final auto-pay for the earliest her calculator tool said it would count as payment number nine. Great. I'm miffed, but now at least I'm not a full month behind and the CSR supervisor was very friendly. 


Well, on to grievance number two. Though that CSR was very friendly she, too, gave me misinformation. She told me that as my last payment would draft 4/12 that my loans would be reported to the government as clear/completed rehab on 4/25, as that was the regular monthly report date for their company. She assured me that all files that are cleared before that date will be processed the 25th and insisted I don't have to call between payment cut and that date to ensure the transfer would happen. This was a total lie. Since the 25th I've constantly been checking the status of my loans with the government (help line and website) and they are still saying "collections assigned to CA". So, yesterday I finally spoke with Coast and they told me that my accounts were still showing as in collections with them and had not been processed for release. She said that they were still in their "60 day allowed review process" before being released so this shouldn't be a problem. What is "review" you ask? Well, it's just someone looking at the account and confirming the payments were made and clicking "submit for processing" which she did ON THE PHONE WITH ME. So, if I had called between my last payment and the report date, I could have had these processed last month. So now I am ANOTHER month behind in the process. 

This is so frustrating. I know that the process is a long one, but I'm finally where I should be seeing movement on this debt and it's hold up after hold up. Moral of the story? Stay on top of the process and hold those CSRs accountable. If they tell you something will happen, call to confirm it happens instead of taking their word for it. 



Message 1 of 2
Established Contributor

Re: Stay on top of your rehab payments!

Great info ! I would like to add another reason to stay on top of this. After I finished my 9 payments, my account was sent to Fedloan but I wasn't notified right away. Fortunately, I remembered reading here that I should continue making payments until I heard from the new servicer. I logged into my old account and tried to make a payment on 5/8 (my usual date). I could not so I called them directly. They told me who my new servicer was. I called them and made the payment BUT my payment date was 5/5 and over the phone, the automated system indicated my payment was "late".


About 1 week later I get a letter from fedloan, introducing themselves as my new servicer and requesting payment with due date of 5/5 !

BK7 Discharge 1/16
10/15 ~ EQ: 406; TU: 520
10/18 ~ EX: 666; TU: 646; EQ: 652
Message 2 of 2