l actually just went through this (January - October). I didn't make a single payment towards my student loans, they went into collections and I was on the brink of being garnished at my job. I got a call from the student loan rehab (on behalf of Navient) and I started with them. They only asked me for my monthly bill amounts (rent, cell phone, daycare, etc). They didn't ask me for W2 or paystubs to verify. Who are your student loans with (Navient, Sallie Mae, etc)? To answer your question though, whatever amount he's currently paying (the amount that was giving to him BEFORE his new wages), won't change. He doesn't need to let them know if he's making more money because, they will indeed have him pay more. Once he's completed the rehab program (7-8 months usually), they will transfer it over to a new lender and, he will start paying them directly (the amount he will pay to the new lender will be much cheaper than what he was paying to the rehab program). If you're planning to purchase a home though, make sure you get a lender in the mail from the rehab program confirming that he's successfully completed the program and that his student loans are in current standing.
Hope this helps!
Some of that advice is incorrect. I could be wrong; maybe someone else can weigh in.
When you don't pay them they get sent to a collection agency. They are no longer with the servicer (unless there are servicers with in-house collection solutions, which I've never heard of). To get your loan sent back or to a new servicer you have to rehab or consolidate. Rehab payments are only determined one of two ways, according to the official Dept of education guide:
Jsut FYI: my servicer had in-house collections, so it does happen - but I don't think most of them do that.
It was also listed as a collection account when I defaulted (from being a standard-student-loan-account) on my credit report, so they still made the distinction and it made little difference in the end, the same procedure was generally followed, even if they kept it in the family
It was under the name of the servicer still? I was aware that some of the servicers own collection agencies, but I didn't realize some of them also connect themselves. Thank you for this information. Always learning something new about this.
The saddest thing is that a bunch of the collection agencies were involved in a legal situation over violations. The judge ruled they were supposed to stop collecting... but here we are.
Between this and the second-default info, I'm starting to feel like your personal monkey wrench!
edited to add: I had FFEL loans, I know the program has changed a lot over the years (federal vs private lendors, servicers changing, guarantors, etc), which might be part of the issue. I wonder if they changed/clarified roles. I know things especially got squirrely with the Sallie Mae/Navient (private/federal) change, too.