DebtConsolidationCare [A+ on BBB] Logo
DebtConsolidationCare Forums
Discuss your problems and get out of debt
Get honest and blunt feedback on your debt issues from Experts for FREE
For Free Debt Counseling: Call 800-DEBT-913 or

DCS REHAB PROGRAM- DCS Student Loan Collections

member profile picture

I need some clarification on this loan rehab program that DCS offers. My husband has been in the payment process. he paid their 1%, he has paid 4 months into this program, and 5 left to pay. they assured him that it will be removed from his history and that a loaner will purchase this old student loan where he can set up payments (some 12 payments) to pay off this old student loan that is a major lien on this credit report. My question is, is this program LIGIT? we are trying to buy a new home, we have asked them if there is any way he can just PAY these people in one lump sum and get it over with, and they have said that he can pay it, but that means it will void the program and that they will notify the credit bureu that the lien was PAID but it wont be removed from him credit history. I need to know if there is any other way we can solve this, the quick and efficient way (paying it and getting it removed from his credit history) I want to know if this rehab program is ligit, because WHO WOULDNT WANT THEIR MONIES UPFRONT!!... its all very confusing. Can anyone please help. We need to buy a home, we are expecting a baby and we need these issues resolved pronto!




SOAPLADY


Debt Samaritan
Posts: 17191
Credits: 474465.88869987

Sub: #1 [quote] -------------------------------------------------------
Tue, 04/10/2007 - 08:14

[quote]
------------------------------------------------------------------------ --------

I need some clarification on this loan rehab program that DCS offers.

DCS does not offer the program per se. Rehab is a program offered by all federal student loans...the regs are set in the Higher Education Act.

My husband has been in the payment process. he paid their 1%, he has paid 4 months into this program, and 5 left to pay. they assured him that it will be removed from his history and that a loaner will purchase this old student loan where he can set up payments (some 12 payments) to pay off this old student loan that is a major lien on this credit report. My question is, is this program LIGIT?

Yes
we are trying to buy a new home, we have asked them if there is any way he can just PAY these people in one lump sum and get it over with,
Nope. The rehab program by law requires that he make the set amount of payment on time.


and they have said that he can pay it, but that means it will void the program and that they will notify the credit bureu that the lien was PAID but it wont be removed from him credit history. I need to know if there is any other way we can solve this, the quick and efficient way (paying it and getting it removed from his credit history) I want to know if this rehab program is ligit, because WHO WOULDNT WANT THEIR MONIES UPFRONT!!... its all very confusing. Can anyone please help. We need to buy a home, we are expecting a baby and we need these issues resolved pronto! [/quote]

Federal law sets out the rules for student loans. You can go ahead and pay it off in full but you will be left with the negative tradelines for 7 years from the date the default claim was paid. With rehab, it gives you the opportunity to remove the negative tradelines but you have to basic prove to the lender that you can make payments on time for a period of time.




Unregistered

Sub: #2 Quote:Originally Posted by AnonymousI need some clarification on
Fri, 06/18/2010 - 01:18

Quote:
Originally Posted byAnonymous
I need some clarification on this loan rehab program that DCS offers. My husband has been in the payment process. he paid their 1%, he has paid 4 months into this program, and 5 left to pay. they assured him that it will be removed from his history and that a loaner will purchase this old student loan where he can set up payments (some 12 payments) to pay off this old student loan that is a major lien on this credit report. My question is, is this program LIGIT? we are trying to buy a new home, we have asked them if there is any way he can just PAY these people in one lump sum and get it over with, and they have said that he can pay it, but that means it will void the program and that they will notify the credit bureu that the lien was PAID but it wont be removed from him credit history. I need to know if there is any other way we can solve this, the quick and efficient way (paying it and getting it removed from his credit history) I want to know if this rehab program is ligit, because WHO WOULDNT WANT THEIR MONIES UPFRONT!!... its all very confusing. Can anyone please help. We need to buy a home, we are expecting a baby and we need these issues resolved pronto!


Yes the program is ligit. I have been paying for 7 months and now can apply for student loans. For the credit part after nine months it should show good standing on your credit report.




Unregistered

Sub: #3 Here is the Catch - The reason why they dont want you to pay in
Thu, 07/22/2010 - 21:22

Here is the Catch - The reason why they dont want you to pay in full is becasue after you make your 9 - 12 consecutive payments, they resell the balance of your loan for priciple plus a fee of approx 18% of the balance that will be financed by the company that acquired you loan. I am trying to figure out a work around here...maybe after it comes out of defaule and right before they sell it, I can pay off..otherwise the paperwork they sent me states that when the loan is resold I agee to fee the fee percentage...geesh..




SOAPLADY


Debt Samaritan
Posts: 17191
Credits: 474465.88869987

Sub: #4 It is not a catch.....you pay in full, you also still pay the co
Fri, 07/23/2010 - 04:05

It is not a catch.....you pay in full, you also still pay the collection fees.

The loan doesnt come out of default UNTIL they sell it.....the action of rehabbing it involves the funds and loan transfer...there is no window to slip thru.

Keep in mind if this was a FFELP loan...a loan taken out thru a bank or lender like Salimae, Citibank etc....the original creditors trade line is NOT removed...only the guarantors trade line is remove. If this was a defaulted Direct Loan, this is not an issue.




Unregistered

Sub: #5 I have been making payments to DCS each month. They are request
Sat, 07/24/2010 - 18:24

I have been making payments to DCS each month. They are requesting a financial statement from my co-borrower (which was given to them). DCS is now requestuing $5,000.00 down payment from the co-borrower abd $232.00 payment month. Neither one of us can afford the $5,000.00 down and would not be able to handle $232.00 per month-we offered $150.00 per month. What do we do. My co-borrower is elderly and they indicated to her that they(DCS) would take money out of her retirement fund. Wgat do we do?




SOAPLADY


Debt Samaritan
Posts: 17191
Credits: 474465.88869987

Sub: #6 Technically they can ask for anything they want....both of you a
Sat, 07/24/2010 - 19:48

Technically they can ask for anything they want....both of you agreed to balance in full on demand.

DCS cannot take any money from her period. In order to take any funds, they would have to sue first....which depending on the balance will probably happen anyways. SS funds are exempt.




Unregistered

Sub: #7 DCS does not actually own any of the loans, they just service th
Tue, 08/10/2010 - 09:10

DCS does not actually own any of the loans, they just service the default loans. The original lender owns the loan. The reason they can not take the full payment is because the contract they have states that they can take full payment or make payment arrangements with you. The writing of the rehab law says that with 6 payments they can remove the delinquent status, so regardless of how silly it seems, it was a bureaucrat who made this happen in this manner not them. Be careful they will not offer you every option, just the one that they train the employees to offer you and the one that benefits themselves the most. Always get it in writing what they say on the phone. That way if they do not tell you the full truth you can have useful information in the future. However, do not expect them to fully give what they said to you in writing either. They will leave out things to insure they stay in good graces with the agencies that they service the loans for. Depending on the state you live in, record the phone call, this is easily done using Skype. Some states prohibit recording conversations, some prohibit recording conversations without the other party knowing, some states allow you to do whatever you want. Even though it is hard to discharge a student loan in bankruptcy, they still have to follow the same rules in dealing with you as do other creditors. Read the fair credit reporting act and what they are allowed to say or not say, do or not do. Make sure you take notes about the conversation and send them a letter about what was discussed.




SOAPLADY


Debt Samaritan
Posts: 17191
Credits: 474465.88869987

Sub: #8 Sorry jerks but the original creditor does not own the loan...th
Tue, 08/10/2010 - 12:48

Sorry jerks but the original creditor does not own the loan...the OC would have been in the case of a FFELP loan a bank or servicer or the Direct Loan Program. You default, the guarantor takes over the debt.

Student loan contracts if you have ever read it state "balance if full on demand" upon default. There is no provision for payments after default in a student loan prom note.

Rehab law doe NOT say deliquent status is removed after six months. The law is the Higher Education Act. The deliquent status is removed after the borrower has completed 9 payments AND the loan has funded. you become eligible for title 4 funds after six month...you are still in default.

They will not put anything is writing....the prom note is in writing and the CA's will not and cannot changes the terms of that note.

You are clueless when it comes to student loans...please refrain from giving advice in a subject that you have no knowledge of.




Unregistered

Sub: #9 I am changing jobs and will have a two month lag in paychecks...
Wed, 12/15/2010 - 08:04

I am changing jobs and will have a two month lag in paychecks...Any ideas on what my options are? I will be broke for the next two months...Arggg!!!




SOAPLADY


Debt Samaritan
Posts: 17191
Credits: 474465.88869987

Sub: #10 Talk to your lender...defer or forbear your loans.
Wed, 12/15/2010 - 17:25

Talk to your lender...defer or forbear your loans.




Add new comment

Attachment
More information
  • Files must be less than 2 MB.
  • Allowed file types: txt pdf jpg jpeg png.
CAPTCHA
This question (Case Insensitive) is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA

Share post
-->

Page loaded in 1.405 seconds.