Good question... I dunno what is the answer. I'll do some research and get back to you if I got an anything. You should email the people at Lending Tree as they probably can answer it..

UPDATE:.

Just spoke with the lawyer for the CA. His words "I don't really know how that works. Let me talk to my client and get back to you." Huh??.

Any thoughts???..

Javan.

There really is no leeway with rehabilitation..you need.

To make.

12 CONSECUTIVE.

Monthly payments on time...not 12 payments within a 24 month period. Also, if you are late on any payment, the clock goes back to zero and you have to start all over again..

Fla-tan..

Javan.

Not only have I reviewed, I ahve actually read the whole d*mn thing...and that will really put you to sleep....

Fla-tan..

Sorry about that, I mis-spoke in my above post. I have been making payments, every month, for the last 24 months. So thats 24 consecutive payments - 12 MORE than the requirement...

Fla Tan said, "I just went to the Common Manual and in chapter 8.10 on page 444 it talks about rehabbing and states specifically that rehabbing is making 12 consecutive voluntary payments. The manual states that payments will be considered voluntary if made directly by the borrower, regardless of whether there is a judgement against the borrower. Now the manual deals with FFEL Stafford loans only and there may be diferent regulations dealing with other types of Federally Guaranteed loans, but normally the regs are very similar.".

True, but you can't just decide to rehab a Lending Tree loan which is in judgement by sending in 12 payments, regardless of what the manual says (see my above post which comes directly from: Federal Student Aid, U.S. Department of Education, 2002, Default Fact Sheet, Reference: Special Cases). The judgement needs to be vacated and then a new promissory note is signed. You also can't consolidate a Lending Tree loan for which a judgement has been obtained until the above conditions are met..

Javan,.

I'd try working with the guarantor if the CA doesn't seem willing to work (and, I don't think the CA will be able to do what you need them to do, i.e., vacate the judgement, etc.)..

Scout.

That is why this industry is so confusing even to those within it. There are contradictory regulations and findings all over the place..

Fla-tan..

Fla-Tan said, "That is why this industry is so confusing even to those within it. There are contradictory regulations and findings all over the place.".

Your right. Student Loans are so different from almost every other type of financing out there. On one hand, so many people need them, but on the other hand.....

UPDATE............

OK...spoke with attorney for the collection agency. He says that there is a company or gov't agency that will "consolidate" the loan, therefore satisfying the judgment! The company is Direct Loans.

Http://loanconsolidation.ed.gov/index.shtml.

I plan to call them today to see if this is true and to apply for this loan. From looking at their website, the interest rate is still high - could be about 8%, but at least the judgment will be satisfied..

Any knowledge of this company/program?..

The CA is just pushing for consol, that way they get paid more! Be careful, I'm willing to bet that you'd have to jump through almost the same hoops to get this rehabbed. Remember, once it's cosolidated, it'll become a new loan..

Although, since your defaulted ones are so old, this may actually be better thing to do, unless the old derogs are still on your reports... If they are, I'd push for rehab...

Thanks for the tip..

No, my old loans do not show up on any of my reports...

Javan.

If the original Lending Tree loan was a Perkins Lending Tree loan then the consolidated Lending Tree loan should be at the Perkins Lending Tree loan rate of 5%..

Fla-tan..

But the old rate won't factor in because they will need to offer a new promissory note since this was a judgement...

Spoke with a CSR at Direct loans and according to her, they will not consolidate a Lending Tree loan that is in judgment status. The judgment must be vacated first, then I can apply..

How do I get the OC/CA to vacate the judgment so I can consolidate this loan? I have a call in to the school, waiting for a call back. Any suggestions or negotiation tips?.

Oh yea....thanks for your continued help with this issue! :-)..