Kenneth Said:

I rehabilitated my student loans, now they say I have more in default. What gives?

We Answered:

You should contact DCS and have them send you detailed information on the loans they claim are in default. Then you should compare them to the loans that you have rehabilitated to ensure that you have not overlooked money borrowed at another time or school. If the loan(s) they are attempting to collect are the exact ones that you have rehabilitated, send them a short letter indicating that those loans have been satisfied and then ignore them.

Stephen Said:

student loans & interest rates....?

We Answered:

You have already consolidated each of these loans once already. You can try, but usually you can't consolidate them more than once.

Patsy Said:

My student loans are now being serviced by Sallie Mae?

We Answered:

Yup this is totally normal. The only thing that changes for you, is where you mail your payment to. The due date, amount, term, rate, is all the same.

Something like 80% of student loans end up at sallie mae.

Tiffany Said:

Is consolidating my federal student loans with Direct Loan Servicing my best option?

We Answered:

Direct Loan Servicing is definately an option for you when you are considering consolidating your Federal Student Loans. Also, yes the Federal Government are the ones who regulate the interest rate on Federal Student Loans. The interest rate is established every July 1st of the year and is regulated by the T-bill.

Keep in mind, because Direct Loan Servicing is, in essence, the Federal Government they rarely pursue someone to consolidate their Federal Student Loans since they are so overwhelmed with the process of issuing Federal Student Loans. Because of this they task other companies to deal with the consolidation volume. The other companies the Federal Government tasks to do this offer the FFELP Consolidation Loan Program which is also regulated by the Federal Government so these companies must all follow the same rules and regulations as Direct Loan Servicing.

One thing the FFELP Consolidation Loan Programs offers is additional Borrower Benefits for those who qualify. The FFELP Consolidation Loan Program companies also offer their assistance in filling out your paperwork, which can be difficult at times. For more information on borrower benefits please visit the source below.

Dave Said:

How do i get my federal student aid direct loan audited?

We Answered:

To dispute any federal student loan issue, you'll probably get the best results from the FSA Ombudsman's office, which is sort of like the Department of Education's version of the Better Business Bureau. You can contact them at:

U.S. Department of Education
FSA Ombudsman
830 First Street, NE
Fourth Floor
Washington, DC 20202-5144

Phone: 1-877-557-2575
Fax: 202-275-0549

Online: http://www.ombudsman.ed.gov/about/contac…

Hope this helps!

Christopher S. Penn
Producer, the Financial Aid Podcast
Daily free financial aid internet radio, no iPod required
http://www.FinancialAidPodcast.com
FinancialAidPodcast [at] gmail [dot] com

Rene Said:

Student Loans (ICR + Consent to Disclose Tax Info)?

We Answered:

Possibly, yes.

The Income Contingent Repayment Plan is designed to directly relate your monthly payment to your income (as the name suggests). The lender or loan servicing agency uses a mandatory formula to calculate your ability to pay - so, once they get an accurate picture of your actual income, it's that income that will determine your monthly payment obligation - not some other random amount that you have been paying in the past.

It's a virtual certainty that Direct Loan Services will contact the IRS for a copy of your tax transcript - after all, that's the whole point of them asking you to sign that disclosure form.

I think you're being drawn into exactly the verification mechanism that lenders use to prevent what you're trying to do - understate your income, so that you can limit your monthly loan payment. It shouldn't surprise you that lenders don't just take the borrowers word for what they can afford. I think most borrowers would tell the lender they can afford about $5.

So, yes. If you're understating income, I think the Direct Loan Services is about to find this out. Sorry for the disappointing news.