In my experience, the old rehabbed accounts remain a part of your credit report. They will report a $0 balance, and there should be NO mention of default or 'paid by insurance' on the account.
The lates stay on your credit report for the standard amount of time, though frankly I found with my two Nelnet accounts that they did drop off a couple of months before I thought they should have. Here is what the status of my Sallie Mae loan was on June 20th. That was almost two months ago, so maybe each one of these lates dropped off each month since then (e.g. July 5 and August 5 maybe?). In fact, maybe that correlates to the Dec 2006 and Nov 2006 dates below. If, for example, the 120 days late for November would have originally gone delinquent in July 2006, which was 7 years ago last month. For the Dec 2006 late, that would have been August 2006.
I can't tell you how weary I am of thinking about and dealing with student loans. But then, I probably don't HAVE to tell you -- I'm sure most people in my situation feel the same way.
