Getting my life back - Rehabbing and need some advice

[SohoRitch04]

Hi everyone, I'm new to this board, wanted to introduce myself as well as ask for some advice and what to expect next now that I'm finally taking control of my debt, life.

I owe about 21k on student loans through AES and I was ignoring letters from them until it finally went into collection through DCS. Basically, I traveled a lot internationally for work, and I irresponsibly put in on the back burner.

So, I finally called DCS and set up a plan where I would pay initially $650 to get into the program and then payments of $229 until the rehab program is up. I'd like to get some tips, advice and expectations from those have gone through the process and experts.

1. Is the amount I'm initially paying sound right? I live in NYC and the cost of living is bad.

2. Will this definitely be off my credit report when I'm done.

3. Will I essentially just start paying back to AES directly when I am done with rehab?

4. Is there anything that I should be communicating, looking out for during the rehab process that the creditor won't be telling me. I'm trying to avoid missing the fine print or anything else that I should be on the look out for during this process.

Any words of advice or caution would be tremendously helpful. I cannot tell you how much stress and sleep I've lost, and I know it is completely my fault - it's also sort of a secret as my parents or girlfriend don't know about it. I am 26, almost 27, and want to live a happy life, free [as much] of financial stress. I appreciate it so much.

[LynnInMN]

1. Is the amount I'm initially paying sound right? I live in NYC and the cost of living is bad.

No downpayment is required for rehab. They cannot deny a rehab for not paying a downpayment. Otherwize the payment sounds good.

2. Will this definitely be off my credit report when I'm done.

Your guarantors negative remarks will be removed. However the OC's negative tradeline will remain.

3. Will I essentially just start paying back to AES directly when I am done with rehab?

Or whoever picks up the loan.

4. Is there anything that I should be communicating, looking out for during the rehab process that the creditor won't be telling me. I'm trying to avoid missing the fine print or anything else that I should be on the look out for during this process.

Not that I can think of.

[Amanda]

I did pretty much the same, I could not pay so I did not pay. Now the debt appeared in my credit report AGAIN and they can come after me (Federal Employee). Here is my question: my original debt is $1,500 and a little bit more of $2,000 with all the "bla,bla,bla fees". As of today, they havent report to the Credit Agencies; I guess only because I already had that in my credit for 7 long years? Do you know if they can report it again? I would like to pay in full, would that benefits me in any way or should I do the rehab plan? By the way, it is a Perkins Loan from 1995. Thanks!!

[LynnInMN]

I did pretty much the same, I could not pay so I did not pay. Now the debt appeared in my credit report AGAIN and they can come after me (Federal Employee). Here is my question: my original debt is $1,500 and a little bit more of $2,000 with all the "bla,bla,bla fees". As of today, they havent report to the Credit Agencies; I guess only because I already had that in my credit for 7 long years? Do you know if they can report it again? I would like to pay in full, would that benefits me in any way or should I do the rehab plan? By the way, it is a Perkins Loan from 1995. Thanks!!

If your account is subrogated or taken over by the US Dept of Ed, then the 7 year reporting cycle will start again.

[Amanda]

Would they report even if I agree to pay right away?? I already acknowledged the debt and said that Im willing to pay. I just requested from them to investigate a payment that I made on 2005 that it does not show in the "breakdown" of the debt they sent to me.

Any suggestions on this?: "I would like to pay in full, would that benefits me in any way or should I do the rehab plan? "

[LynnInMN]

Would they report even if I agree to pay right away?? I already acknowledged the debt and said that Im willing to pay. I just requested from them to investigate a payment that I made on 2005 that it does not show in the "breakdown" of the debt they sent to me.

--You are still in default. You agreed to pay when you borrowed the funds.

--Who holds the loan now and who held the loan in 2005 ? If the loan has changed hands, it wont show it in the breakdown.

Any suggestions on this?: "I would like to pay in full, would that benefits me in any way or should I do the rehab plan? "

[Amanda]

Those $500 wont count then?

[Cynic]

What $500?

There's no mention of $500 anywhere in your prior posts, and my crystal ball isn't working.

As Lynn mentioned, payments made to the previous loan holder won't show in the current's history. That doesn't mean they "don't count", it means they should be reflected in the "opening balance".

[Amanda]

I made a payment of $500 directly to the University on 2005. It does not appear anywhere in the docs they (Collection Agency) sent me to validate the debt.

[LynnInMN]

I made a payment of $500 directly to the University on 2005. It does not appear anywhere in the docs they (Collection Agency) sent me to validate the debt.

Of course the payment is not going to show. The CA is only responsible to show you records since a claim was paid. Your $500 would have been subtracted from your account before the default happened. You would have to track down the payment yourself by going who you paid it to....the school.