ECSI Federal Perkins Loan Servicer?

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I recently started the ‘Fresh Start’ course for several student debts that were in default, and I’ll eventually move them into the ‘Save’ program. With a ‘0’ AGI, my payment ought to be $0. Everything went rather well with that.

I have been receiving bills from ECSI lately, and it seems that they are not eligible for SAVE or any other kind of IDR plan—all they want is their money!

What choices do I have with ECSI? My primary worry is whether they could garnish my retirement check from Social Security, which is my only source of income.

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hi loan searchers listen to this,ECSI, or Educational Computer Systems, Inc., services many Federal Perkins Loans. They manage billing, repayment, and other administrative tasks for these loans on behalf of the Department of Education.

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If you combine your Perkins federal loans into a Direct loan, you can place them on SAVE.

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Okay, so can I do that right away, or do I have to wait until a servicer is assigned to my defaulted loans? For those, I only initiated the Fresh Start procedure today.

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Hi there, ECSI (Educational Computer Systems, Inc.) serves as a federal Perkins Loan servicer, managing loan accounts, payments, and customer service for borrowers. They handle administrative tasks related to Perkins Loans on behalf of educational institutions and the U.S. Department of Education, ensuring compliance with federal regulations and assisting borrowers throughout the loan repayment process.

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ECSI and Income-Driven Repayment (IDR)

It’s true that not all lenders participate in every IDR plan. While the Fresh Start program helped consolidate your defaulted debts and may qualify for income-based repayment under the SAVE program, ECSI might not participate in SAVE specifically.

IDR Options

Contact ECSI:

  • Call ECSI directly to discuss your situation and inquire about alternative IDR plans they might offer. There are several IDR plans available, so there might be another option besides SAVE that you could qualify for based on your income.

Federal Loan Consolidation:

  • Consider consolidating your federal student loans (including those from ECSI) into a new Direct Consolidation Loan. This can simplify your repayment process and potentially make you eligible for different IDR plans offered by the Department of Education. Learn more about loan consolidation.

Social Security Garnishment

Generally Protected:

  • The good news is that Social Security retirement benefits are generally protected from garnishment for private student loans held by commercial lenders like ECSI. Federal student loans can be garnished under certain circumstances, but Social Security income typically isn’t considered disposable income for federal student loans either.

Additional Tips

Fresh Start Program:

  • The Fresh Start program can significantly improve your credit score over time, making you eligible for better interest rates on future loans, which can save you money in the long run.

Repayment Assistance:

  • The Department of Education offers various repayment assistance programs that can ease the burden of student loan debt. Consider exploring these options to find the best fit for your financial situation.
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@Aiden Okay, so can I do that right away, or do I have to wait until a servicer is assigned to my defaulted loans? For those, I only initiated the Fresh Start procedure today.