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Valued Member
motoracer
Posts: 158
Registered: ‎06-15-2007

Student Loan

this is probably a craaaazzy question but my student loan shows 120 days past due, does that mean it has when in defaultt? Im now current and making payments on time for the last 3 months? was my SL in default? not sure
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007

Re: Student Loan



motoracer wrote:
this is probably a craaaazzy question but my student loan shows 120 days past due, does that mean it has when in defaultt? Im now current and making payments on time for the last 3 months? was my SL in default? not sure





Normally takes 6 months for it go into default.
Now you are paying the status should change to pays as agreed and the past due amount should have gone away.
Valued Member
motoracer
Posts: 158
Registered: ‎06-15-2007

Re: Student Loan

my credit report says that I have too many installment loans should I consilidate the 2 loans or will that hurt my credit score if i do so? also I dont understand if I default on my student loans I can rehab them for 12 months and totally remove any negs off my CR but if I just have some late pays I cant rehab those to remove,,,doesnt seem fair,,,seems like I should just let them go in default and then rehab them to totally remove them so the late pays dont stay on there for 7 years!! anyone got an answer to that?
Established Contributor
dog
Posts: 560
Registered: ‎05-03-2007

Re: Student Loan

oh motoracer, do not fall into the trap of believing that those late pays will disappear if you default then rehab....
 
i defaulted, rehabbed, and, yes, all reports of default, etc, etc from the guarantor and the ca were removed from my report; however, the late payments to the original creditor (sallie effin' mae, in my case) were not removed. 
 
i called sallie mae and they have a prepared script that they will read to you explaining that the original late pays are not removed in the event of default and rehabilitation, blah, blah, blah.  and they are legally right, i found out later.
 
after i rehabbed, i consolidated all of my loans and i now toss them in forbearance status for a year or so, as often as i can. 
 
last year i dv'ed the lates from the closed/transferred sallie mae accounts and they were removed from all cra's. 
 
DO NOT LET YOUR STUDENT LOANS GO INTO DEFAULT!!!! 
FORBEAR, DEFER, CONSOLIDATE, WHATEVER YOU HAVE TO DO!!
 
 
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007

Re: Student Loan



motoracer wrote:
my credit report says that I have too many installment loans should I consilidate the 2 loans or will that hurt my credit score if i do so? also I dont understand if I default on my student loans I can rehab them for 12 months and totally remove any negs off my CR but if I just have some late pays I cant rehab those to remove,,,doesnt seem fair,,,seems like I should just let them go in default and then rehab them to totally remove them so the late pays dont stay on there for 7 years!! anyone got an answer to that?





The consolidation shouldn't hurt your credit.
Just like Dog reported- it is possible to get the lates removed after it is no longer guarantied with the government via Dispute/GW/DV.

I did mine with the 2 year lower payment option- 4 accounts to 1.
Established Contributor
dog
Posts: 560
Registered: ‎05-03-2007

Re: Student Loan

something i forgot to mention....if you consolidate, make entirely, positively sure that every student loan that you intend to consolidate gets wrapped up in the consolidation.  i consolidated 80 grand in student loans, and one little 3k loan was not included.  i had even asked the company that i consolidated with if they were sure that all loans were included in the consol.  they said yes.  of course they were wrong.  i had taken it out at an old address, so i had no info that they had not included it until it was almost in default.  fortunately i was able to settle it for half the value and removal of the delinquency from my reports.
 
in my experience, be as vigilant as you can in dealing with student loans...if there is a foul up, 99.999% of the time it will be attributed to something YOU did or did not do, regardless of how ridiculous it may seem. 
Valued Member
motoracer
Posts: 158
Registered: ‎06-15-2007

Re: Student Loan

Thanks I appreciate all the info guys.  I only have 2 student loans total balance is only around $1800.00 when I consalidate these loans who should I contact to do so and When I do if I pay the full amount in one lump sum do you think that would remove all the late pays on my CR that is showing up under the Sallie Mae account? or should I just continue making the payments after the loans are conslidated?
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007

Re: Student Loan



motoracer wrote:
Thanks I appreciate all the info guys. I only have 2 student loans total balance is only around $1800.00 when I consolidate these loans who should I contact to do so and When I do if I pay the full amount in one lump sum do you think that would remove all the late pays on my CR that is showing up under the Sallie Mae account? or should I just continue making the payments after the loans are consolidated?





Pay it off- after you have at least 6-9 months of clean payments
Then dispute "Never late"

Don't bother consolidating on $1800
Valued Member
motoracer
Posts: 158
Registered: ‎06-15-2007

Re: Student Loan

ive paid clean for 3 months Ill pay 3 more then pay off the balance,,,Ive just heard that sallie mae will not in any instance remove late pays,,,just thought that coslidating them with another company would be esier to get the late pays removed....these are killing my credit score...uuuughhhhhhh!!!!!
Established Contributor
dog
Posts: 560
Registered: ‎05-03-2007

Re: Student Loan

i'll trade ya my student loans for yours. :smileyvery-happy:

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