Amanda Posted October 26, 2008 Report Share Posted October 26, 2008 I received a letter from a Collection Agency. The debt has been validated. Does the loan rehab applies when the account is already with a CA? If I want to pay in full or negotiate a lump sum should I do that with the CA or the University? Link to comment Share on other sites More sharing options...
swirlgirl Posted October 26, 2008 Report Share Posted October 26, 2008 I received a letter from a Collection Agency. The debt has been validated. Does the loan rehab applies when the account is already with a CA? If I want to pay in full or negotiate a lump sum should I do that with the CA or the University?You'll need to contact the DOE: http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html Link to comment Share on other sites More sharing options...
Amanda Posted October 26, 2008 Author Report Share Posted October 26, 2008 30%, 40%, 50%?? Link to comment Share on other sites More sharing options...
Amerikaner83 Posted October 26, 2008 Report Share Posted October 26, 2008 I believe with most rehab programs, a sum of at least 60% is required to settle. But don't quote me on that - I've never rehabbed a loan and it's been awhile since I've read about rehabbing... Link to comment Share on other sites More sharing options...
Amanda Posted October 26, 2008 Author Report Share Posted October 26, 2008 Lets assume 60% is reasonable. It is 60% of the original debt? Or, 60% of the amount they are trying to collect now which includes penalties, interest, and all kind of fees? Thanks!! Link to comment Share on other sites More sharing options...
Amerikaner83 Posted October 26, 2008 Report Share Posted October 26, 2008 well the best answer to your question would most likely lie with the DOE.Interest and fees and penalties ARE reasonable when discussing student loans - which are an entirely different monster than "normal" such as CCs and car notes and the like... Link to comment Share on other sites More sharing options...
LynnInMN Posted October 26, 2008 Report Share Posted October 26, 2008 Keep in mind that if this loan has recently been subrogated by the feds, many years of interet and penalties will be included in the claim paid balance. They may or may not agree to waive any of the accrued interest since the claim was paid and there is no % to go by. Settlements are subjective...they will look at your credit report and do a financial statement. Technically they dont have to waive a dime and with no SOL they can continue to collect indefinately if they choose. Link to comment Share on other sites More sharing options...
Amanda Posted October 26, 2008 Author Report Share Posted October 26, 2008 Thanks!! I will start my negotiations tomorrow. I will post my results. Wish me luck! Link to comment Share on other sites More sharing options...
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