Tampa, Florida
Not resolved

Allied Interstante contacted me regarding my student load and getting in a program that would repair my default and straighten out my credit. After 3-4 months my status of loan is still in collected and marked in default past due.

This is not what Allied promised. To add further insult to injury I cannot get in touch with them except to leave a message. When they wanted me to sign the agreement they were on me night and day. Since then they have been very hard to contact.

Even to the point that they have a link on this site, please contact them before posting here. I did attempt and got a number that rings once and disconnects.

It is clear they live on the edge of legality and may even be over the edge. I see that the only way I will be able to contact them is through the Florida Dept of Education or my attorney.

Do You Have Something To Say ?
Write a review


You will be automatically registered on our site. Username and password will be sent to you via email.
Post Comment

I'm going through the same problems, that you have encountered.


The program is the federal student loan rehab program. It takes 9 months of consecutive, on time payments (plus complete a loan rehab agreement) just to even get to the point where the guarantor begins the process of finding a qualified lender to take the loan in a current status. In today's lending market, you may as well plan on making payments for 12 months. You don't get "credit" on your credit report or have your student records cleared (say for transcripts or Title IV) until the guarantor is out of the picture (and the collection agency assigned to the loan). Most guarantors will have your credit updated within about 30 days from the time the loan is back in a current status. Bottom line is keep making your payments until your are told in writing your loan is current. Most lenders will send you a welcome package informing you.

The alternate to the fed rehab program is a consolidation. This is a true refinance of your defaulted loans and is not as good for your credit as it only shows the defaulted loan(s) in a paid status and the consolidation loan with no negative history. The biggest advantage though is a consol only takes about 60 days to go though (using the US Dept of ED's William D Ford Direct Loan Program).

Regarding federal and state tax offsets:

Keep in mind defaulted loans are not bought and sold and a collection agency does not own the debt, they are merely contracted to recover the funds their client had to pay out in the form of a claim to the lender when the loan(s) defaulted. The guarantor will "certify" the loan with the US Treasury Department meaning they have legal claim to seize ANT payment which originates from the US Treasury Department. This includes not only tax refunds, but also any stimulus payments (ala the Bush plan a few years ago) and if you are a government contractor, and funds resulting from services billed to the government. Once you are certified, things get complicated. Some guarantors certify on an annual basis. The send out letters in late August or early September to the LAST KNOWN ADDRESS for the borrower warning them they have 65 days from the date of the letter to enter into an acceptable payment arrangement on their defaulted loans or they will loose their federal tax refund (and possibly the state refund as well but it depends on the state). Other guarantors permanently certify the loans meaning the borrower gets a warning letter the first year and that is it. The only way to get off the treasury offset program is to either pay off the defaulted loans in full or go through the rehab program or consolidate to get rid of the default status/ There is a lot more to this, but you get the idea on the taxes.

One thing which is worth noting is most of the guarantors off some type of hardship which allows borrowers to still participate in the rehab program but with a payment which is determined by the borrower's situation. There is a lot of documentation which you will need to compile and submit but it can help for a short term basis and get rid of the default status. A word of caution. If your hardship payments are not at least covering your monthly interest, you will end up owning more at the end of the program than when you started! This is called a negative amortization program. Federal student loans are interest bearing at all times so keep that in mind, Also, your payment will go up considerably when your loan goes back current. Make your you contact the new lender immediately for adjusted repayment options to keep the loan in good standing.

Hope this helps!


I just made a deal with them. Ive been defaulted on my student loan forever!

They said that after making payments, the IRS would not continue to take my refunds.

SO i'm guessing that i just gave my money away. Who do I pay to regarding my student loans then???

Allied Interstate Reviews

  1. 16 reviews
  2. 0 reviews
  3. 1 review
  4. 1 review
  5. 1 review
Allied Interstate reviews