Cleared Caivrs in 45 days through Loan consolidation with the William D Ford Program!

[ecalmese]

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@Washes wrote:

FINAL UPDATE:

First I want to say THANK YOU to @vlaw1084 for originally posting his experience here. Had he not taken the time last year to share what he went through, I'm not sure what I would've done. You have blessed my family just by sharing your experience. I hope by posting mine, I am able to help someone else through the process.

We applied for the consolidation on March 29 and overnighted all of the supporting documentation. We entered the certification Phase on April 3. On April 18th, the Summary Sheet was mailed. On May 3, the consolidation payment was made. The payment posted on myeddebt on May 7 (although they received the payment on May 6). The request to clear CAIVRS was sent on May 7. We were told it takes 24 - 48 hours to clear CAIVRS.

This is what I found out along the way

1. Don't go by what's on the website. If you call Direct Loan Consolidation and use their automated status update, you get the most up to date information.

2. You have to wait 15 days once in the Summary Phase and the payment is made COB on the 15th day.

3. myeddebt updates throughout the day (calling also gives you the most update information)

I was discouraged in the beginning but getting information here and staying on top of this process got us through in about 40 days.

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i have one question because i did the same thing you did as far as the loan consolidation to clear my caivrs.

outside of not having a clear caivrs report; your credit and everything else was up to par in order to get an FHA loan? did you have any other hurdles?

[Washes]

I did alot of the work before applying for the loan; thought I had covered everything. DTI is low (1 credit card with 10% utilization). Nothing else on the report. Middle score is 695. That's why this CAIVRS thing was such a surprise. The loan is not on the report, but shows up in CAIVRS.

The processor did everything else while we were waiting for CAIVRS to update. So we should (according to the lender) be in underwriting by Friday.

[Bug101]

Hi,

I am trying to help someone clear caivrs but I cannot find a number for the department of ed for caivrs.  According to their original student loan servicer they do not report to caivrs just NSLDS.  When we did call DOE they said it would be the original loan processor.  I am not sure what else to help them do at this point.  The numbers we have called at DOE does not seem to be any help.  Can anyone give a direct number the DOE for getting cleared of caivrs. 

They are in the process of buying a house through FHA and need to get thier caivrs cleared.  Although they are not sure if they are even on there but they are being reported right now as defaulted through NSLDS, but that is because they just finished rehab and the loan servicer has not sent the paperwork to update yet and it won't be sent until the end of the month but they do not have that much time.  Their loan is do to go to closing by the end of the month.

Any help would be appreciated.  Thanks

[vlaw1084]

Hello, I will look through my paperwork to get that direct number for you, give me a few days as I out of town on business.  

[Bug101]

Thank you.  Just wondering if you were able to find the direct number yet.  My friend is freaking out.  We have placed some other calls but everyone seems to be unaware of who to talk to.

I am usually pretty good at getting to who I need to find which is why they came to me but this one has me stumped.

[HouseMouse]

I just had a FHA denied through Wells Fargo and student loans seem to be a big part of it. I was defaulted then rehabbed the loans. So show good history with that institution. Loans were sold to a bank. Through a divorce my business failed and I was stuck with a lot of business debt I filed bankruptcy on in july 2011. Discharge was Oct 2011. my bk attorney decided to see what could be done with the student loan mess and tried to have them included in the BK.  We ended up with a settlement for $4,800 total debt owed and I pay $40/month for 10 years with no interest. My federal court papers say that all are to show on my credit report as paid satisfactory and one is to show the settlement amount and it will show the payment and the reduction of the balance. I have paid on this now 13 months. A credit check shows only one loan and the balance on my credit report started at $18K and is now at $26K.. a far cry from the settled amount. I am trying to find out if I am actually on this CAIVRS since I have a settlement,  and who I need to speak to to have my credit report show the settled agreement. For what  I can afford I afford the home I have a contract on is really nice and I hate to lose it. BUt before paying for any extensions and any more appraisals I need to know if I can get off this report if I have a court ordered settlement.

Oh.. and fyi. I paid off my car early to improve ratios and my scores dropped 40 points. Trying to find a lender to work with that now as well. Crazy is I have a lifetime of paying on time, no financial irresponsibility leading to the BK. The BK was caused by a crazy life changing event and even wrapping all the student loans up into a nice manageable settlement does not seem to matter. I am told no one looks at the entire picture to determine risk. So appreciate all those that contribute here to help me acheive my goals.

[Anonymous]

Thank you so much for sharing this information. It saved us from losing the house we wanted. You are a true gift from God!

[vlaw1084]

You're welcome  but I was just blessed to be able to share this information with others facing the same delimma.  We all have our ups and downs, but the worst thing we can do is give up, because that is what the enemy wants us to do.  I wish you all the success and blessings with your new home!  COngratulations!!!!!

James

[Anonymous]

The scary part is NO ONE, not the Department of Education or the mortgage company explained this option to us. We have been on a repayment plan for TWO YEARS but since we made 2 late payments they would not clear us for the Caivrs I seriously cried out of frustration. And it’s not like we're uneducated people, (I would like to think I am up to date on most things, especially when it comes to our credit). I just happen to do some research on my own and I found your post, you are seriously A GODSEND!!

I do have a question, we applied for a consolidation last night through the Department of Education but I couldn't find anything in specific about how to apply for the William D Ford Program, is that a specific application or does it allow us to apply for consolidation (we previously thought if the loans were in default they couldn't be consolidated). 

[Anonymous]

I also want to thank @vlaw1084! Here it is even a couple more years later! I am in the same boat. Default student loan, learned of what that means for CAIVRS and getting an FHA loan. I got to the funding of my direct loan with in 15 days total. Now to hound the Dept of Ed to get off the CAIVRS list! I would have sat back biting my nails! But now with everything online I was able to see things as soon as they moved to the next step, I called and waived waiting periods and WOW! I was stuck in what I had understood to be a rehab payment situation after my BK and to find out it was just good faith payments!
Thank you so much everyone for sharing your experiences to help others!