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I originally had two student loans through Texas Guaranteed Student Loans. In 2005, these loans were placed into default. At that time, the US Dept of Education picked up the loans - not sure if it was through rehab or simply the federal guarantor being required to take the loan after my default... but, I didn't have to enter into a payment program with US Dept Education, so I'm thinking it was NOT a rehabilitation...
The Tx Guarantee loans still show on my CR with a DOLA of 2/2006, which will be another three (3) years before they fall off my CR. They both appear as a paid collection account. Default does not show anywhere on any of the CRAs. I'm about to begin repayment with US Dept Education (loans currently in forbearance), but I;m wondering if there is a way to clean up how Tx Guarantee is reporting these...and with repayment about to start, maybe now is a good time to try and work something out?
Do I still have an option to get the original lender's reporting cleaned up?
Thanks for any help/advise you can provide!
I think you might find people who know more about this in the Student Loans forum.
@Anonymous wrote:I originally had two student loans through Texas Guaranteed Student Loans. In 2005, these loans were placed into default. At that time, the US Dept of Education picked up the loans - not sure if it was through rehab or simply the federal guarantor being required to take the loan after my default... but, I didn't have to enter into a payment program with US Dept Education, so I'm thinking it was NOT a rehabilitation...
The Tx Guarantee loans still show on my CR with a DOLA of 2/2006, which will be another three (3) years before they fall off my CR. They both appear as a paid collection account. Default does not show anywhere on any of the CRAs. I'm about to begin repayment with US Dept Education (loans currently in forbearance), but I;m wondering if there is a way to clean up how Tx Guarantee is reporting these...and with repayment about to start, maybe now is a good time to try and work something out?
Do I still have an option to get the original lender's reporting cleaned up?
Thanks for any help/advise you can provide!
I went through the exact same thing. Lived in TX, got TX student loans. Two years into paying them back, I defaulted.
Long story short, they too were sent to the Dept of ED. The ones from TX showed as paid collections, which is correct. Dept of Ed paid them off and I in turn paid the Dept of Ed. You more than likely will not get them off your report.
I did not enter into a repayment plan with the Dept of Ed. I was never asked. I found out all of this when they started offsetting my federal income tax. They took my income tax for nearly 11 years. I owed less than $6000 in student loans and they got well over $16,000 from the offset.
If you do enter into a payment plan, ask about your income tax return. They can still take it whether you are making payments or not.
Thanks for the input...especially since I posted this one in the wrong forum... When you refer to repayment plan, is that AKA Rehabilitation? When my loans were sent to Dept of Ed, I was asked to setup a repayment plan. At the time, I couldn't pay to monthly amount, so I requested forbearance. I'm at the point where forbearance will run out in a couple of months and I'll begin making payments.
Do you, by any chance, know if rehabilitation is an option?
I have no idea about rehabilitation. You can call the Dept of Ed and find out. All they can say is no and you won't have to wonder if you did the right thing.
I went through rehabilitation through TG last year. I would suggest giving them a call and ask about your options. If I remember correctly, if you've been reinstated, then your credit history remains the same, it just shows that you've begun paying your loan back. If you get the loans rehabilitated, They should remove all record of the default, although I think your payment history stays from the original lender. TG cleared off my credit report, but I'm still fighting with Sallie Mae to remove the default status. I would suggest rehabilitation and then consolidation if possible. My FICO score has gone up about 100 points since starting that whole process.