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Need help with my student loan rehab issue.....

Frequent Contributor

Need help with my student loan rehab issue.....

So after i pay my 9th payment of this rehab process later this month i was sappost to be in the process of getting all this turning to a + line on my credit by about the 12 month mark. So yesterday i called the Allied office just to talk to them to make sure everything was moving right. She then tells me no lender has picked up my account yet because its from Florida and for some reason there is none available there. Anyone been threw this? Anyone can tell me what to do? I have worked to hard recently on fixing all my stuff to be held up because some stupid crap like this. My score was sappost to jump around 100 points from what i have read when this this turns +, im tired of getting screwed around with when i do my part. 

EQ-784 TU-777 EXP-772 12/11/15

NFCU(11.5k), USAA(6k), DCU(10k), Sapphire(5k), Duck(5k), Freedom(1k), Quicksilver(3k), DiscoverIT(2k), AmexBCE($800),
New cards 12/12-NFCU-MC(18.5k), Simplicity(9.2k),Slate(7.5k),Amex(3.8k)
Message 1 of 20
19 REPLIES
Established Contributor

Re: Need help with my student loan rehab issue.....

Sorry, I dont have any direct experience with rehab. I researched both rehab and consolidation. The CA that has my (10 years ago (5) defaulted) student loans wouldnt put it in writing for the 9/10 payment rehab plan, and that in itself just gave me a bad feeling.

 

The consolidation (all through the dept of education so no "credit threshold" to worry about) is in the process and supposedly takes 60ish days. I had initially signed up for a company to do this for me (ill leave company name out...not sure of the legals and all that), 600 bucks, until I figured out how easy it was to do myself.

 

Anyway long story short, the difference here is when consolidated, the old (then paid off) student loans on the reports shows PIF but leaves the bad payment history (vs the rehab reaging the acct history to show no lates). For me personally it wasnt an issue, as the student loans have already fallen off my reports.

 

Im sorry that doesnt exactly answer yor question, but its all i got. More info on consolidation at loanconsolidation.ed.gov

Message 2 of 20
Frequent Contributor

Re: Need help with my student loan rehab issue.....


Crossdivided wrote:

Sorry, I dont have any direct experience with rehab. I researched both rehab and consolidation. The CA that has my (10 years ago (5) defaulted) student loans wouldnt put it in writing for the 9/10 payment rehab plan, and that in itself just gave me a bad feeling.

 

The consolidation (all through the dept of education so no "credit threshold" to worry about) is in the process and supposedly takes 60ish days. I had initially signed up for a company to do this for me (ill leave company name out...not sure of the legals and all that), 600 bucks, until I figured out how easy it was to do myself.

 

Anyway long story short, the difference here is when consolidated, the old (then paid off) student loans on the reports shows PIF but leaves the bad payment history (vs the rehab reaging the acct history to show no lates). For me personally it wasnt an issue, as the student loans have already fallen off my reports.

 

Im sorry that doesnt exactly answer yor question, but its all i got. More info on consolidation at loanconsolidation.ed.gov


Thanks for your help but i really need someone who has been threw this situation to let me know what i can do to speed up my issue. U wouldn't know what im asking if u haven't been threw it. I know how the rehab plan works cause im in it and rehab is not the same as consolidation at all. Thanks crossdivided.

EQ-784 TU-777 EXP-772 12/11/15

NFCU(11.5k), USAA(6k), DCU(10k), Sapphire(5k), Duck(5k), Freedom(1k), Quicksilver(3k), DiscoverIT(2k), AmexBCE($800),
New cards 12/12-NFCU-MC(18.5k), Simplicity(9.2k),Slate(7.5k),Amex(3.8k)
Message 3 of 20
Epic Contributor

Re: Need help with my student loan rehab issue.....

You should contact the Department of Education if you are having this problem and make sure you keep making the payments until the problem is resolved.  The Department claimed in May 2012 that it had fixed the problem..

Message 4 of 20
Frequent Contributor

Re: Need help with my student loan rehab issue.....


guiness56 wrote:

You should contact the Department of Education if you are having this problem and make sure you keep making the payments until the problem is resolved.  The Department claimed in May 2012 that it had fixed the problem..


Thanks i forgot i could even do that, i will give them a buzz after my 9th payment.

EQ-784 TU-777 EXP-772 12/11/15

NFCU(11.5k), USAA(6k), DCU(10k), Sapphire(5k), Duck(5k), Freedom(1k), Quicksilver(3k), DiscoverIT(2k), AmexBCE($800),
New cards 12/12-NFCU-MC(18.5k), Simplicity(9.2k),Slate(7.5k),Amex(3.8k)
Message 5 of 20
Valued Member

Re: Need help with my student loan rehab issue.....

if you have any progress, please update!

 

i'm in a similiar but different situation.

 

i had a loan that went to rehab status in sept 2010 but dept of ed never updated my status.

 

2+ years later i realized the loan still says it is in collections even though the loan has been transferred to another loan provider.

 

so... now i'm battling with dept of ed to not only update the loan from no longer being in collections but somehow deleting it if i can swing that. since they never updated it in a timely fashion, it still appears current. if they update now, it will still appear current although closed which still isn't ideal to me.

 

i'm trying to work throug the dept of ed ombudsman office. if i get anywhere, i'll update as well.

 

good luck!

-------------
06/2013 -- TU 690 - EX 674 - EQ 673
03/2013 -- TU 638 - EX 685 - EQ 654
01/2013 -- TU 607 - EX 573 - EQ 597

GOAL -- All Above 700... I'll get there soon enough!
Message 6 of 20
Frequent Contributor

Re: Need help with my student loan rehab issue.....


surbee wrote:

if you have any progress, please update!

 

i'm in a similiar but different situation.

 

i had a loan that went to rehab status in sept 2010 but dept of ed never updated my status.

 

2+ years later i realized the loan still says it is in collections even though the loan has been transferred to another loan provider.

 

so... now i'm battling with dept of ed to not only update the loan from no longer being in collections but somehow deleting it if i can swing that. since they never updated it in a timely fashion, it still appears current. if they update now, it will still appear current although closed which still isn't ideal to me.

 

i'm trying to work throug the dept of ed ombudsman office. if i get anywhere, i'll update as well.

 

good luck!


I read that if u send in your proof to the creditors that u have finished all of this then they r sappost to take the negative off and its sappost to turn positive. Not sure what the problem is but im surely not letting any of this slide longer that what it should be. To be honest u might even be able to sue some people because u signed up for a program and 2 years later still same crap. Well there r some threads in here about student loan rehabs maybe u can get an idea. I will fight my issue to the end until it gets fixed the way i want. I have all the proof about the program from when i started so they can't pull any sh-it.

EQ-784 TU-777 EXP-772 12/11/15

NFCU(11.5k), USAA(6k), DCU(10k), Sapphire(5k), Duck(5k), Freedom(1k), Quicksilver(3k), DiscoverIT(2k), AmexBCE($800),
New cards 12/12-NFCU-MC(18.5k), Simplicity(9.2k),Slate(7.5k),Amex(3.8k)
Message 7 of 20
Epic Contributor

Re: Need help with my student loan rehab issue.....

Only the guarantors TL will report positively, the lender/servicers will still report negatively.

Message 8 of 20
Frequent Contributor

Re: Need help with my student loan rehab issue.....


guiness56 wrote:

Only the guarantors TL will report positively, the lender/servicers will still report negatively.


Then why do the rehabilitation program to begin with if it still reports negative? The whole reason this program is put into place is to help people who defaulted get 1 chance and 1 chance only to prove themselves again, after completing 6 consecutive payments u go from not being able to get student loans or financial aid again to receiving a letter and r now able to get them again, after your 9th payment u r sappost to get picked up by a lender, by the 12th month the negative is sappost to be then removed as a baddy and your lender who picked up your loan is the only 1 left reporting a positive line on your credit for as long as your loan has been taken out. I don't know how u have been screwed in this way but this is what i have been told and also what i have read about from everyone else. If i were u i would be looking to sue someone for all of your issues. I also have it in writing that once i complete the 9 months of payments that this will be getting picked up by a lender or i have to find 1 myself and it gets taken off as a bad line.

Its been process for me to get to today but im here and almost done with my rebuilding process, thank god.

EQ-784 TU-777 EXP-772 12/11/15

NFCU(11.5k), USAA(6k), DCU(10k), Sapphire(5k), Duck(5k), Freedom(1k), Quicksilver(3k), DiscoverIT(2k), AmexBCE($800),
New cards 12/12-NFCU-MC(18.5k), Simplicity(9.2k),Slate(7.5k),Amex(3.8k)
Message 9 of 20
Highlighted
Regular Contributor

Re: Need help with my student loan rehab issue.....


Legions36 wrote:

So after i pay my 9th payment of this rehab process later this month i was sappost to be in the process of getting all this turning to a + line on my credit by about the 12 month mark. So yesterday i called the Allied office just to talk to them to make sure everything was moving right. She then tells me no lender has picked up my account yet because its from Florida and for some reason there is none available there. Anyone been threw this? Anyone can tell me what to do? I have worked to hard recently on fixing all my stuff to be held up because some stupid crap like this. My score was sappost to jump around 100 points from what i have read when this this turns +, im tired of getting screwed around with when i do my part. 


I am in Florida and in the same exact position. I am now on payment 12 with a 30k loan and I literally call Dept of Ed every week (sometimes 2x a week) to check on the status and always the same answer...."We are waiting on a lender to pick up the loan, just continue to pay the collection angency". I'm so frustrated....I really want to buy a house in 6 months but I can't even talk to banks because this is still not taken care of. It's been a year already, I've done my part. No one said this might be an issue when I first started. Can't do anything but wait but good to know I'm not alone.......

12/11/12 Starting Score EQ FICO - 583/ TU FICO - 615/
4/1/13 - Lender Pull - TU - 645 EQ - 675 EX 712
Each One - Teach One
Message 10 of 20