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Frequent Contributor
Posts: 297
Registered: ‎01-10-2008
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Student Loan?

Hello all.  I have a quick and hopefully easy question.  I have a PRIVATE student loan, and it went into default.  I was dployed to Afghanistan and was blown up, and while I was recovering in the hospital the SL went into default.  I have since been making monthly payment, and have been doing so for about 1 1/2 - 2 years.  I was told to ask the lender to rehab the loan, and I sent my letter in to request that.  DID I MESS UP?  I was just now told that if they rehab the loan I can not get a mortgage for 9 months to a year.  I am seriously about 2 weeks away from meeting everything for a pre-approval with a VA mortgage.  Would a letter from the lender saying that I have been making the payment on the payment plan for over a year work?  SHould I stick with the rehab, or call and ask them not to grant my request?  PLEASE HELP! 

Starting Score: Sep 23, 2014 EQ 577 TU 583 EX 567
Current Score as of 6/28/17 EQ 628 TU 643 EX 625
Goal Score: 700
Senior Contributor
Posts: 3,299
Registered: ‎04-22-2008
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Re: Student Loan?

tough question.  Normally a loan in default would kill your loan no matter what so I am not sure hoq you got to this stage int he first place without either paying it off or entering into a rehab plan.  Is it still currently showing as past due, but you are making payments on it, or does it show normal now.


AZs far as rehabbing, yeah they will want to see a payment history once you establish a rehab plan of anywhere from 6 months to a year.  They usually want a year but I think you have reasonable circumstances as to the situation and with the current payments as wellI would guess you would be ok after 6-9 months.


As far as to what to do, talk to your lender and make dmaned sure that they are bringing it up to the underwriters attention so this in not one of those last minute surprises.

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