topic Rehab waiting game in Student Loans

Rehab waiting game

Zekester — Tue, 15 Jan 2013 16:13:13 GMT

I made my 9th payment December 20th and am waiting for a funding date so I can start seeing some of the benefit from the program. My guarantor was Sallie Mae with USA Funds showing for the loans. GC Services was handling the rehab process on this and originally said the funding date would be the 11th and now the 17th. Anybody else in roughly the same time frame as me experiencing something similar?

Re: Rehab waiting game

Kathy4NU — Tue, 15 Jan 2013 17:47:58 GMT

Keep us posted. I am making my 8th payment today and my 9th payment early (on February 1st - the earliest they will except the 9th payment).

I am hoping by making it early my loan will get picked up before I have to make a 10th payment.

Re: Rehab waiting game

elleng81 — Tue, 15 Jan 2013 19:29:58 GMT

Zekester wrote:
I made my 9th payment December 20th and am waiting for a funding date so I can start seeing some of the benefit from the program. My guarantor was Sallie Mae with USA Funds showing for the loans. GC Services was handling the rehab process on this and originally said the funding date would be the 11th and now the 17th. Anybody else in roughly the same time frame as me experiencing something similar?

Hello! My student loan was rehabbed with GC Services as well. My 9th payment was made on September 26th. I made a 10th payment on October 26th and was informed that my loan actually was picked up on the 24th by AES and that my 10th payment that I had made to GC Services was credited to my AES account. I am now in the waiting game for the removals of negative information from the original lender (MOHELA). I called MOHELA and was told they gave the updated information to the CRs on December 3 and they have 60 days to update. 43 days and counting... AES is showing up now (backdated to 4/2009) with all positive paying history. I am concerned about the MOHELA information updating... I would love to see my 120+ days removed, as I was told they would be after completion. I also don't understand how it is showing on my CRs... they show up twice, once with MOHELA and once with FedLoans (4 loans each) so I am actually showing 8 loans with 120+ days lates. Does anyone know if all of them will be removed?

Thanks!

Re: Rehab waiting game

Zekester — Tue, 15 Jan 2013 20:06:32 GMT

Thanks for the update with your progress. I will keep mine updated on here as well. I was hoping I would get picked up before the 10th payment, but I doubt it is going to happen in time at this point.

Re: Rehab waiting game

moneypenny02 — Wed, 16 Jan 2013 03:02:23 GMT

Thanks! I think you may have answered a question I had about the rehab program -- but you are saying that after making the req'd number of payments, all of yoru negative history should be deleted? I am trying to get rid of multiple 120+ day late payments and trying to figure out of PFD is the only way to get rid of these without waiting the 7 years.

Re: Rehab waiting game

ZeroG1MC — Wed, 16 Jan 2013 15:10:53 GMT

What will happen is that your current loan accounts will be closed (note of default removed and account balance brought to $0). The new lender will open up a fresh student loan account that will appear on your credit report with perfect payment history dating back to the same initial payment start date of the original defaulted loans. The issue that most have is getting those lates removed from the defaulted accounts. I just posted today about how my Good will letter to have them removed by Nelnet was denied. Its worth a try, however those missed payments of yours (and mine) are accurate so they dont have to remove them. You do have a good shot if the payments were missed due to being shipped out by the military or something along those lines. They have to remove the "default" from those old accounts, but bot the missed payments. It helps to just look at the situation and feel lucky that we both had a second chance and have our loan rights restored (ability to receive new loans and deferment etc...) and have the default removed. That default destroys your credit score. Good luck to you!

Re: Rehab waiting game

Zekester — Thu, 17 Jan 2013 00:18:30 GMT

I just spoke to the rehab people again and they told me that in my case, the default will be cleared and the two TLs will be deleted and replaced with positive ones. He backed it up by saying that he will send a letter to that effect as well. I am not sure what makes each of these scenarios different for everybody.

Re: Rehab waiting game

ZeroG1MC — Thu, 17 Jan 2013 13:41:48 GMT

I guess there is mix of factors such as luck, persuasive skills in the good will letter, whether someone has a direct staff email / name, or which company is being dealt with.

Re: Rehab waiting game

Zekester — Tue, 22 Jan 2013 22:58:48 GMT

Well, they said it would be funded on the 17th and I should receive mail letting me know who picked it up before then. As it happened, the loan was funded on the 18th before my 10th payment would have been deducted, which I am happy about, but I haven't received any mail yet about it.

I have been hacking away at clearing up old collection accounts and other baddies off my report, so hopefully this will delete off about the same time as some other items so I get a dramatic bounce.

Once I get the letter and follow up, the rep said it is running about 2 weeks to see the default cleared and the new tradelines. Hoping this turns out to be the whole cleansing of the TLs some people have picked up. Fingers crossed!

Re: Rehab waiting game

Zekester — Wed, 23 Jan 2013 16:07:37 GMT

Another interesting thing about this. I got my student loan interest statement for my taxes last night. I was paying $250 a month on the rehab payment and apparently that whole thing went to interest. A hefty extra deduction I wasn't counting on.

Re: Rehab waiting game

elleng81 — Wed, 23 Jan 2013 17:03:57 GMT

Zekester wrote:
Another interesting thing about this. I got my student loan interest statement for my taxes last night. I was paying $250 a month on the rehab payment and apparently that whole thing went to interest. A hefty extra deduction I wasn't counting on.

Zekester - Did your interest statement come from your original lender or the CA? I was wondering if I would get something for my takes for my $200/month rehab payment! You made my day :)

Re: Rehab waiting game

Zekester — Wed, 23 Jan 2013 17:18:11 GMT

It is from USA Funds C/O Sallie Mae Post Claims Assistance.

The collection agency was GC Services and their name isn't on this anywhere.

Re: Rehab waiting game

Zekester — Thu, 24 Jan 2013 17:50:55 GMT

I called in to the rehab number for sallie mae and was passed on to ACS who will be servicing the loan for the new lender, JP Morgan. My payments dropped $80 a month as a result of a lower interest rate on the new loan.

No changes showing on the credit report yet, and nothing in the mail from anyone at this point, but I feel like I am making progress!

Re: Rehab waiting game

Zekester — Mon, 28 Jan 2013 17:24:49 GMT

I got my congrats letter stating,

"Sallie Mae, Inc. is a servicer of student loans for national and state guarantee agencies.

We are pleased to inform you that you have successfully completed your rehabilitation program as of 1/17/2013. Your education loan(s) listed below was purchased by the lender and is no longer in default.

The guarantor, United States Aid Funds, Inc., will notify the national credit bureaus to delete the default status. As a result of your rehabilitation, the lender/servicer that maintained the loan(s) prior to this default will be notified. It will be their responsibility to correct any adverse credit reporting that they may have made."

I already made my first payment to the new lender, so I can't wait to see what happens next!

Re: Rehab waiting game

RU4Real — Mon, 28 Jan 2013 21:15:21 GMT

They probably mean they will delete the trades they are reporting, not the original trades that defaulted. The original lender must remove the default but not the late payment reporting. The collection service that you have been working with to rehabilitate can only speak for their own trades, which they usually do delete. You will need to deal with the original lender to ask the original lender to delete the late payments and see what happens. Good luck.

Re: Rehab waiting game

Zekester — Tue, 29 Jan 2013 17:13:18 GMT

Sallie Mae just went missing from EQ(TL for the defaulted loan). The other two still have it and all three show the collection accounts USA Funds created after the default. No new TLs at this point.

Re: Rehab waiting game

Zekester — Sun, 03 Feb 2013 05:52:40 GMT

USA Funds is gone from all 3 now, so 2 negative TLs are gone. Still have Sallie Mae on two showing the default and the negs. No new positive TLs reporting yet.

Re: Rehab waiting game

Zekester — Tue, 05 Feb 2013 18:58:42 GMT

The latest change was that my loan status changed in nsld to reflect that the loan is in repaymen, although they have not yet updated the lender information. My reports still show no new TL, Sallie Mae (with all the lates and the default) dropped from EQ, but not TU or EX. The USA Funds collections accounts have dropped from all 3. I updated my scores in my sig to show how things are changing. At the same time I have been working on some other issues, so the changes reflect all of that. I had a Chase CO drop off, as well as getting rid of an AFNI account that was reporting a collection on an account that had been closed a year before they verified a late occured. Making progress!

Re: Rehab waiting game

Zekester — Tue, 12 Feb 2013 16:15:07 GMT

Another step in the process... Got an alert from EQ that I have a brand new tradeline with perfect payment history dating back to 2003. Still waiting for Sallie Mae to drop off the other two and the new TLs to show up. Happy so far!

Re: Rehab waiting game

Zekester — Wed, 13 Feb 2013 15:51:51 GMT

Well, the new TLs showed up on this morning's report, along with a couple of surprises. Sallie Mae came back on my EQ and is reporting a year of 180 day lates. They had removed the TL a few weeks ago, and then brought it back today. It also has it listed as an open account. So this is a problem. They also updated the TLs on the other reports to show a year of 180 day lates. In the process all of the other history on the TLs was wiped out, a smattering of 30s leading up to my default. So it looks like they did some kind of refresh of the TLs. On TU and EX they still show as in default, but closed. The new one they added today on EQ is listed as open AND transferred.

The other issue is that the balance on the new TLs is being listed as 111% of the credit limit. Also, not very helpful.

The net result, FICO dropped from 686 two days ago to 612 this morning. Need more coffee and feeling a bit defeated.