My Student Loan Servicer Said They Could Not Help Me With Rehabilitation


Dear Steve,

Greetings. It is a long story…I have a Master’s degree, was in a terrible accident, had a subsequent relationship issue ensnaring me in a legal fiasco over my daughter. I prevailed.

In that time I defaulted on my student loans initially because of an address issue. I called to get into a rehab program through the collection agency. The signed me up. Then, in the process of completing my “pay as you earn” analysis the person said that she could no longer help me as the Department of Education was taking over my process.

She said they’d be in touch within 30 days. They never got in touch with me. I tried reaching out to them…they said it wasn’t transferred yet. Now it’s in collections again. I have crazy, unreachable fees and I am just putting my life together for myself and daughter. I want to do the smartest thing…what do I do?

What do I do now? Do I communicate with collections? Wait out the statute of limitations, file bankruptcy? Wait for them to come after me?



Dear Lorenna,

You can certainly try again yourself. However sometimes what a situation like this needs is an expert who has been through this before and knows when the servicer is pulling your leg. Sometimes student loan servicers say the darndest things.

I would suggest you contact my friend Damon Day, who is a talented debt coach, and inquire about his assistance to guide you through this process.

With federal student loans, a rehabilitation is a good tool but can only be used once. Waiting this out or ignoring it is not a smart move. You don’t want to just default, get an administrative wage garnishment or have your tax refunds intercepted. You need to take action and get behind the wheel to get this moving forward.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

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