I have been in default with wage garnishment for about a year on my federal student loans. Based on the advice you give, I applied for Loan Rehabilitation with Transworld, the company who has the debt (and who, incidentally, is being sued by my home state, along with others). I sent a completed application with all supporting documents using the FedEx mailer I was sent over the summer. I followed up–via certified mail–in September, October and earlier this month. I haven’t received any acknowledgment/reply of any kind.
Do I need to get a lawyer to send a more official letter on my behalf? I’d rather not spend the money if I don’t have to; it will be a financial hardship to pay for legal assistance.
There are two things here. The first is if you are talking about Transworld Systems, they are a debt collector and not a federal student loan servicer. I would suggest you login to the National Student Loan Database System and see what the current status of your federal loans is and who the loan holder actually is.
I think what you need at this stage isn’t necessarily a lawyer but someone to help figure out what is really going on with your loans. You can select any person or company you want but I know my Debt Coach friend Damon Day is very skilled in just such situations. I’d suggest you contact him for assistance in solving the mystery that is your loans.
Transworld Systems is listed as an approved debt collector for the Department of Education.
On the Transworld website they say all rehabilitation document or payments should be sent to:
TRANSWORLD SYSTEMS INC.
P.O. BOX 17203
WILMINGTON, DE 19850
Fax: 866-290-2375 – Source
Which is different than the Pennsylvania address listed on the Department of Education website. So there is the mystery where your rehabilitation documentation should be sent.
If you want to attempt to unwind the poor customer service you’ve received, you can contact the Department of Education Default Resolution Group.
Either get help or become the squeaky wheel and call the entity you think is responsible for your loans on a weekly basis until you get some answers and confirmation your information has been received and noted in their system.