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  1. #1
    Join Date
    May 2011
    Posts
    2

    Default Perkins Loan Rehab

    This is a bit lengthy but it's important to me...Ok, so i rehabilitated my Direct loans as of next month and paid off my tuition debt, so things were going well, then i discovered the Perkins loan was held by a separate collection agency called NES. When i called, they refused to allow me to enter the federal loan rehab thing. This seemed quite absurd so i pressed them that it is a Dept of Ed program and it's not their choice. This devil also claimed i must give a routing # as they do not ever take physical checks, again absurd right. So i refused to do so and he threatened me that they were recording this and will tell their the college how uncooperative i'm being, while he is trying to "help" me. I laughed and ended the convo. I called the college and told them how this lying scumbag was harassing their students. The supervisor said none of that was ok and he would call their boss and order them to enter me into loan rehab. I called the Dept of Ed Ombudsman at the same time cause screw this. They assigned me a case worker.

    Now a few days later i called NES again and again the same asshole refuses. I called the college again and he swore they would get me a different rep and he seemed quite angry. He reaffirmed what the ombuds told me, that they cannot refuse me on this. I call NES a few hours later and finally this same trash (they would not send me to another agent) offered to rehab my loan...at $500/mo for 9 months which be 100% of the perkins loan...all of it. He claims yet again they don't take checks and to give him routing #. I caved and gave an account # and he said they would find the routing and deduct payments that day. I made sure there's only enough for that month's payment. He refused to send any paperwork also. I can afford to make these payments but do not trust NES, at all. I trust the college to not screw me but they seem to not have control. With the Direct loan, it was real simple. I paid 25% of the balance and the loan is rehab'd, they sent a contract, and i photocopied and sent certified checks. All i want is to remove the financial hold, and finish my degree, but this crap is being complicated and drawn out.

    What i'd like to know is, what recourse do i have now to ensure this works? Don't they HAVE to send paperwork and allow physical checks, especially when the college their client says so? Isn't their some policy as to what % of the balance is to be paid for a loan rehab (like under 100)? How can i make them just take the damn money already? Does the ombud office actually do anything? I would like some assurance that this is resolved other than "yep" by this lying piece of crap at NES. Any help would be MUCH appreciated.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Perkins Loan Rehab

    As is explained here,
    Quote Quoting Loan Rehabilitation - If you are a Perkins loan borrower:
    To rehabilitate a Perkins Loan, you must make nine (9) on-time, monthly payments of an agreed amount to the Department. Payments secured from you on an involuntary basis, such as through wage garnishment or litigation, cannot be counted toward your nine (9) payments. Once you have made the required payments, your loan(s) will continue to be serviced by the Department until the balance owed is paid in full.
    If you agreed that the 9 payments would be $500, then that's what you agreed.

  3. #3
    Join Date
    May 2011
    Posts
    2

    Default Re: Perkins Loan Rehab

    Ombudsman office was actually quite useful today. They contacted the college which agreed to payments of $150, so i got out of the 500/mo as well as doing a conference call with NES and me since they had been lying thru this whole process, about a federal program and all. I won't have to deal with that dastardly agent again and will be sending the checks to the college. They are also considering dropping the collection fees once the loan is rehab'd.

    I think they just lie about everything cause they get away with it in most cases...My advice to anyone treated this way is to not allow them to rush you into anything and if they threaten you, laugh and hang up.

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