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Rehab vs Consolidation and a few other ?s


soulthoughts
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I sent an email yesterday regarding rehabbing my student loan. I emailed a link from the sticky above on rehabbing student loans. This is the reply I got:

Thank you for contacting us.

You request information about loan rehabilitation. Van Ru Credit

Corporation, a collection agency under contract to the U.S. Department

of Education, is administering this account. Any payment arrangement

must be negotiated with this agency. We have forwarded your inquiry to

this agency.

For further information, you should contact Van Ru Credit Corporation at

18883378331.

We hope this information will be helpful to you.

Does that sound right to anyone?

Also, I had a quick question on rehab vs consolidation...do you have to rehab before consolidating or can you go straight to consolidation on defaulted loans?

Thanks!

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Who is the OC? That can give an idea.

On my CR it just says US Dept of Education with an address in Greenville, TX. I've ignored this for so long that I'm afraid I have very little info. I'm thinking I may have to make a few calls to get more info.

Assuming they are Stafford loans, can I consolidate w/out ever rehabbing? What's the effect on my credit if I can/do go this route?

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Creditwise, you want to rehab before consolidating. If you go straight to consolidation, you will be left with the negatice DOE tradelines.

Consolidation regs do say that you need to be in repayment on a default in order to consolidate so you will need to contact Van Ru to set up repayment.This had to be done over the phone as no negotiations will be done in writing. Also, CA's, especially student loan vendors for the DOE are open evening hours...it is in the DOE contract. I believe Van Ru is in Illinois so there should be collectors there until 11pm central time.

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So I spoke to Van Ru today and found out I owe approximately $38,378.14. The rep, who didn't sound very knowledgeable and was kind of pissing me off, first said I had to pay $456/month on top of the roughly $500/month being garnished. Crap. That's a ton of money.

So I said, 'There's no way I can pay that kind of money on top of being garnished. Is there anyway you can lower that amount?' He put me on hold and said he was going to ask. Not even 10 seconds later he says, 'Nope. That's the lowest payment.'

How true is that? Do they have set amounts or guidelines that they go by? I was hoping for something around $100/month.

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Bull....the standard 1% payment would only be $384..approx of course.

However as a voluntary payment, $100 althogh affordable would not be considered reasonable considering your balance. You might wanna give a call to the student loan ombudsman

First off, thanks for always answering my questions. I thought this was bull. I remember a post that you had regarding repayment and what I was told was kind of contrary to that.

To kind of test things, I called back and got a different CSR and they gave me an option of $279 on top of the garnishment for 13 months. That's still high considering what's being garnished and I declined. This CSR offered to send me a hardship package to fill out to stop the garnishment but she said that wouldn't help my credit and that's the one of the main concerns on top of stopping the garnishment and repaying what I owe.

I'm googling for the student loan ombudsman.

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edit

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Okay I have some info on the ombudsman. My next question is, I have the option of filling out a form online to contact the ombudsman is that route okay as far as getting results or should I do the snail mail thing? Any tips on what to write to the ombudsman?

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