Rehabilitating Private Student Loan in Default

[cooperncampbell]

My question involves collection proceedings in the State of: NJ
I have a Citi private student loan ($9,500) that is in default. I was unemployed from June ’08 – April ’09. The note was in forbearance for first 6 mo’s. From Dec ‘08 –April ‘09 I was told by the Student Loan Corp that my only option was to make payments. The note defaulted in April and was sold to a collection agency. In May I began work. I sent a Cease & Desist letter to the collection agency, and a certified letter to the Corporate Counsel at the Student Loan Corp. asking them to rehabilitate my loan. I also started making payments directly to the Student Loan Corp, (my monthly payment was approx $135) I have paid over $1,100.00 since May ’09 directly to Student Loan Corp.. My note has now been forwarded to a law firm.
What are my options? I would prefer to simply return to paying the loan to Citi.

[Mr. Knowitall]

You can only rehabilitate a private student loan if your lender offers a rehabilitation program and you qualify. Most private lenders do not offer rehabilitation.