BKGirl Posted July 9, 2007 Report Share Posted July 9, 2007 Has anyone had any success requesting rehabilitation of a defaulted, private TERI guaranteed loan? I read with great interest all of the incredibly valuable information that LynninMN and Mikeman has posted on this subject here and in other forums. From what I understand, private loans are not eligible for rehab because the Section 674.39 Loan Rehabilitation statute only applies to federal loans. So if I can't afford to pay in full and they won't rehab, what options do I have? Should I just let them sue me? I have a co-borrower as well, will they sue both or just one of us?DOLA - 3/2005Original Amt - $32KAmt Now Due $45KLast Know CA - DCS, Inc.What SOL applies? Florida (5 years) or Ohio (15 years)?My coborrower and I live in Florida but the promissary note states "I understand that you are located in OHIO and that this Application/Promissory Note will be entered into in the same state." I plan on sending TERI a request for rehabilitation anyway unless someone here has another suggestion.Drowning in student loans for life....BKGirl Link to comment Share on other sites More sharing options...
BKGirl Posted July 10, 2007 Author Report Share Posted July 10, 2007 Would I be able to avoid wage garnishment if I just started making voluntary monthly payments, even if the CA or TERI won't agree to my payment terms of say, $375 a month? Would it make it more difficult for them to obtain a judgement against me or my coborrower? Link to comment Share on other sites More sharing options...
LynnInMN Posted July 10, 2007 Report Share Posted July 10, 2007 Rehab is only an option for defaulted federal loans. DOLA does not apply to student loans. Everything is based off the date of default.And yes they will sue both you and the co-signer. Is your co signer aware of the default? Link to comment Share on other sites More sharing options...
BKGirl Posted July 10, 2007 Author Report Share Posted July 10, 2007 Yes my co-signer is fully aware of the default. Would it be more difficult for them to be granted garnishment if I'm making voluntary payments? Link to comment Share on other sites More sharing options...
LynnInMN Posted July 10, 2007 Report Share Posted July 10, 2007 Private loans become due in full upton default. They can file for judgement at anytime after that point, regardless of payments being made. At $375/month you are probably barely covering your interest, if at all depending on your interest rate. $375 is not a resolution...it will be seen as a bandaid by your lender. Unfortunately with private loans, they can get vicious, suing both the borrower and cosigner. Garnishment would be at 25%, not the admin wage garnishment rate of 15%. Can your cosigner help refi this? Link to comment Share on other sites More sharing options...
BKGirl Posted July 10, 2007 Author Report Share Posted July 10, 2007 No, my co-signer and I experienced some very unexpected financial setbacks in late 2003. The loan defaulted (I think) February 2006. So our only option other than paying them in full is play ostrich and wait for them to sue us? Seems like private educational lenders have the best of both worlds - no bankruptcy AND no rehabilitation. Link to comment Share on other sites More sharing options...
LynnInMN Posted July 11, 2007 Report Share Posted July 11, 2007 No, my co-signer and I experienced some very unexpected financial setbacks in late 2003. The loan defaulted (I think) February 2006. So our only option other than paying them in full is play ostrich and wait for them to sue us? Seems like private educational lenders have the best of both worlds - no bankruptcy AND no rehabilitation.Playing ostrich with private student loans simply leaves your a$$ exposed.TERI in particular actively sues big time. Link to comment Share on other sites More sharing options...
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