ATLANTA, GEORGIA -- First of all, my loan was put into DEFAULT status when I was enrolled as a full-time graduate student--which is not supposed to happen. I was basically told (by EdFund) that I had no option but to begin a 9 MONTH rehabilitation plan in order to get my loan out of default status, restore my credit, and receive student aid in the future.
At the end of my 9 month plan, I was told I had completed my rehabilitation, but an additional 10th payment was withdrawn from my checking account. I was told by my representative @ Edfund that I could legitimately dispute the withdrawal.
Several months later, AFTER I ESTABLISHED DEFERMENT (b/c I am a student) with my new lender, ACS--I received a notice of wage garnishment from EdFund. I called them to dispute and they claim that I was supposed to make a 10th payment (no where was this noted in my paperwork), and that I was now back in default status!! They basically told me I had no choice but the START OVER with a new rehabilitation plan. This is impossible for me b/c I am a graduate student who has not been eligible for loans and am essentially broke. It took everything I had to complete the initial rehab program, and now I'm back at square one! They have been completely unhelpful and unsympathetic and want nothing but my MONEY! I am disgusted that they are so callous and I feel like this entire "10th payment" is some sort of scam to keep up in default. I have no choice but to remain in default b/c they are only willing to accept payments of $208/month. I have no clue what I can do, and they are completely unhelpful. They are currently "investigating," and said they would get back to me.
Has anyone encountered a similar situation with a student loan rehabilitation program?? I made my 9 payments, and I want out of DEFAULT!