Student Loan!

Submitted by Sig on Wed, 09/26/2007 - 19:52
Forums

Does anyone know anything about the rehabilitation for student loans?
I just signed up for a program that allows me to pay on it and it will take it totally off my report in 9 months when I am done paying that part of it.

They will be sending me a written contract that says all this!

They have taken my taxes and even garnished my paychecks once. So I wanted to get something done with this now!

I didn't do anything with the validating the loan or nothing but this seems a little different then the way credit cards handle things.

Was this a good desicion or a bad one????

I would post your question in the debt forums (there is a student loan board there).

A member named SOAPLADY used to work in a financial aid office, and later collected on student loans...also says she still maintains contacts with former co-workers. She's very knowledgable about this subject.

However, it sounds like you're on the right track.

Thu, 09/27/2007 - 04:20 Permalink

I personally dont think that it is a bad decision. That is because of the following characteristics of rehabilitation

* The loans are no longer considered in default status positively affecting your credit
* The default status reported to the credit bureaus by the lenders will be deleted from your report
* The same eligibility recurs that was before the default of the debt. e.g. Title IV eligibility, forbearance etc
* No more Wage garnishment and IRS does not withhold your income tax.

you wont get the back the garnished segment though but atleast you will be relieved of the debt. Be careful while reading the contract, understand all the clauses mentioned. Good luck :)

Thu, 09/27/2007 - 04:36 Permalink
Anonymous (not verified)

After I posted I saw the student loan part on Debt forums! :oops:

But with the replies it pretty much answers my question!
I was just curious because I always see bad things with Allied Interstate.
But they were very nice to me and answered all my questions. And am also getting that written contract in the mail!

Thanks for the Help!!!

Thu, 09/27/2007 - 20:58 Permalink

:oops: :oops: :oops:

I wasn't logged in LOL

Thu, 09/27/2007 - 21:03 Permalink

Thats great news SIg. Hope things work out fine with you.

Fri, 09/28/2007 - 03:15 Permalink