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.
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. _________________ I don't dream since I quit sleeping
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 _________________ Regards,
Thu Sep 27, 2007 8:58 pm
After I posted I saw the student loan part on Debt forums!
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!
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.