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Question
Hi, I have questions for you regarding my situation. I inadvertently allowed my national student loan to default, which now amounts to $18,000. Have been turned over to a collection agency, CCA, who had been calling me, my parents and another relative incessantly. I have agreed to participate in their rehabilitation program, which started in September, paying $160/month for 10 months. I am led to believe that this will turn my loan back over to the National Dept. of Education, is this correct? I have a couple of questions: first, what are the laws regarding contacting relatives? I have asked them not to do this. I am soon not to have a phone and worried they will start up again. Is there something else I should do to help prevent this? I do not want to speak with these people on the phone, and asked that all communication be made in writing, so that I have a copy of everything transmitted. They say they do not do this. They also sent paperwork which requires three references, with phone numbers, which I do not want to supply, for I do not want them harassing others for my debt. According to them, failure to provide references may result in loss of rehabilitation eligibility. I feel as though any info I give them will surely be used against me. I realize I will not be able to pay this debt off for a long time, and I will be willing and able to make low payments. I am currently unemployed/self employed. I feel I am the midst of a giant mess from which it will be tremendously difficult to escape. Any advice would be greatly appreciated.
CJ,
Yes there is a rehab program for NDE loans.
10 months of payments and a new loan is supplied to you.
They can contact your relatives for location information only. They're looking for full and complete information in case they have to search for you again. Send them a letter requesting communication by mail only. Make sure you pay the 10 payments to be eligible for this program.
Good Luck
Ontrack Financial Group
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