topic Re: SallieMae - late payments in Student Loans

SallieMae - late payments

SusieQ — Thu, 18 Oct 2012 14:33:13 GMT

I had a student loan from Sallie Mae that I stopped paying in October 2010 when my husband lost job. I went into rehab program in 2011 and then after completing rehab it was sold to AES.

Sallie Mae has now marked loan status as Current, with a balance of $0, but the followng lates still show and credit reports (except Equifax which wiped credit history) show account as a derogatory item. Bottom line, I have ten late payments on this account. Question, when does this fall off? First late (12/2009) or will they fall off one by one until 09/2017 which seems a bit unfair.

OK	OK	90	120	120	120	120	120	120	120	120	120
10/10	11/09	12/09	01/10	02/10	03/10	04/10	05/10	06/10	07/10	08/10	09/10

Re: SallieMae - late payments

InvincibleSummer2 — Thu, 18 Oct 2012 18:48:18 GMT

They'll fall off one at a time as they age. Whether or not it's fair, it's certainly accurate.

You could try to GW the lates off. They're not obligated to do that, but if you ask, nicely, they might say yes.

Re: SallieMae - late payments

laz98 — Fri, 19 Oct 2012 01:05:44 GMT

InvincibleSummer2 wrote:
They'll fall off one at a time as they age. Whether or not it's fair, it's certainly accurate.

You could try to GW the lates off. They're not obligated to do that, but if you ask, nicely, they might say yes.

Great post. Definitely doesn't hurt to ask for a goodwill adjustment, as suggested. Otherwise, be prepared to wait the late payments out.

Re: SallieMae - late payments

nicholasyud — Mon, 22 Oct 2012 06:47:48 GMT

i did my remove 30 days late .....be honest with them and sent to Advocate Senior something.........i got them all clean up after 2 weeks contact.....

Re: SallieMae - late payments

scarrollprint — Mon, 22 Oct 2012 13:13:36 GMT

If these were federal loans just serviced through Sallie Mae and you did a full rehab and they were picked back up by another servicer then part of the contract you recieved was for them to completly remove all negative data....Basically they would remove anything except for the origionation date, the date it was paid off (i.e. the date it picked up by another servicer) and a $0 balance. They shouldn't be showing any negative info at all....

If this was a private loan then those rules do not apply.

Re: SallieMae - late payments

SusieQ — Mon, 22 Oct 2012 13:16:49 GMT

they were federal loans. I will contact consumer advocate (got info from another post) and beg them to remove.

Re: SallieMae - late payments

nicholasyud — Mon, 22 Oct 2012 13:45:22 GMT

Good luck SusieSusie

Re: SallieMae - late payments

scarrollprint — Mon, 22 Oct 2012 14:30:55 GMT

you shouldn't HAVE to beg them to remove.

They should have been removed per you completeing the rehab of a student loan program. When they contacted you and set up the rehab they should have said it then that the info would be removed. I would contact whomever did the serviceing of the rehab and ask them why it wasn't removed. Sallie Mae wouldn't be the one that removes it but rather the ones that handle the rehab (I think).

Re: SallieMae - late payments

InvincibleSummer2 — Mon, 22 Oct 2012 15:54:21 GMT

Certainly I don't mean to nitpick, but where are you getting that all the lates are to be removed? Every federal student loan site I've seen says that "the default staus is removed", but there is nothing that says that all the lates leading up to the default will automatically come off as well.

There are stories of specific lenders making the call to remove the lates, but there's no federal rule that says that they have to. YMMV, depending on your lender.

Re: SallieMae - late payments

scarrollprint — Mon, 22 Oct 2012 16:14:02 GMT

All the paper work I received when I rehabbed both mine and my wifes said that since they were rehabbed federal loans all negative info was to be removed.

I was under the impression this was the case for all...Mine were through Direct loans and hers were through Sallie Mae. Her negative info was removed as well as mine. I thought that was the case for all Federal student loans and not a case by case situation from what they told us and from what we heard from others.

Re: SallieMae - late payments

InvincibleSummer2 — Mon, 22 Oct 2012 16:42:05 GMT

I had Direct Loans, and that was not at all on my paperwork. Which is apparently not unusual, but this from Myeddebt.com and studentaid.ed.gov:

Your loan(s) will no longer be considered to be in a default status.
The default status reported by your loan holder to the national credit bureaus will be deleted

From the StudentLoanBorrowerAssistance blog:

"Once rehabilitation is complete, the loan is removed from default status and you are eligible for new loans and grants. The default should be removed from your credit record. In most cases, however, the other negative history will remain until it gets too old to report."

There's a thread here as well:

http://ficoforums.myfico.com/t5/Student-Loans/Federal-Student-Loan-Rehab-The-Law-and-You-please-read/td-p/847218

I don't think removal of all negative info is a slam-dunk, although I do think a GW-type approach might be good. It's not begging to ask for a GW, and I'd hate to have someone end up thinking they are entitled to removal when, in fact, they aren't. People get a variety of results largely because there's no solid policy on this.

Re: SallieMae - late payments

SusieQ — Wed, 31 Oct 2012 14:24:46 GMT

Thanks to all for your help in this thread.

When starting to write my GW letter to Sallie Mae, I found aditional paperwork on the rehabilitation. The letter from NYS Higher Education Services Corporation states that "If the debt has been rehabilitated the HESC loan is deleted from your credit history."

The AES purchased loan (after completing rehabilitation) is now on my credit report with a start date matching the original Sallie Mae loan.

I am sending a copy of this letter to Sallie Mae Advocate requesting that they remove the loan in its entirety.

Keep your fingers crossed!

10/31 - update - sent request to remove to the advocate group at Sallie Mae via email last night.

Re: SallieMae - late payments

SusieQ — Fri, 02 Nov 2012 13:58:36 GMT

I sent an email to the advocate asking for deletion and included the letter from NYS Higher Education Services Corporation stating that "If the debt has been rehabilitated the HESC loan is deleted from your credit history."

Received a quick email response letting me know that they are reviewing. Fingers crossed