05-28-2012 08:14 AM
Just a quick note to anyone seeking to clear Caivrs in order to get a FHA, USDA or VA loan. I hope this will help others get a home loan if they had the same issue I did.
I had a student loan from 20 years ago that somehow dropped off and was forgotten about. When I started the application process for a VA loan of course it reared it's ugly head in the government system. So I had to get to work, my loan officer told me my credit pull would be good for 120 days from the date of application,( other lenders may have a different time frame ) this gave me only 90 days to get it done.
I first contacted the ORIGINAL LOAN SERVICER, they will tell you who this is regardless if it's NCO, Greatlakes, ECI ect. ( Of course make sure you can qualify for consolodation) I had two to contact, NCO and ECI, one was stafford loan and the other was a perkins loan. They will want to keep you on the rehad, and if you have the time to do that, then go that direction, but if not consolodate. Fill out the application and fax or mail it in, and they will begin processing right away. The government sent a check to the servicers for the full amount owed with 20 days, they negotiated the penalties for me. Within the next 10-15 days, contact the department of education and advise the loans have been satisfied and request to be removed from the caivrs system.
They will remove you within the next batch, which may take from 3 to 10 days. You will receive paperwork to sign and date and to select a repayment plan. You will have several options. About a month later after the consolodation has taken hold, they WILL report to the credit with a clean history, so you will need to monitor your credit report for this. A fresh start , just stay current and put your payment on auto pay through your bank, so you do not forget.
My lender was amazed that I could get that done in that time frame, but let me tell you my motivation was my family and strength to do it came from GOD.
11-24-2012 05:36 PM
I was wondering if I can ask a couple questions about your post. You said your student loans were from 20 years ago. How long ago did they actually go into default? In other words were you making payments all these years and recently defaulted or had they never been paid? Also, if they were defaulted for a long time, were your tax refunds garninshed? or wages garneished?
12-20-2012 01:47 PM
You...are....an amazing person!!!!
I just signed up for the program, totalling $80k worth of student loans, consolidated into one small payment each month.
I was so worried about how to get them off my back, but yet, bring my score back up and here is the answer.
I never ever would have thought of this, and now I can breathe easy. Thank you again
04-03-2013 02:07 PM
i had some government loans that prevented me from having a clear caivrs report. after the consolidation was complete sallie mae now services my loan. the customer service reps do not know what a caivrs report is. i am at a dead end. do you have any suggestions on how i can get someone to report to caivrs that my consolidation is complete and my caivrs should get cleared?
04-03-2013 03:03 PM
You should be able to contact the dept of education directly and HAVE THEM TAKE YOU OFF CAIVRS, this should only take a few days. advised them that that your loan has been picked up and paid in full and that you need to have it removed from their system. When I did this they had me off of cavirs within 4 business days. YOU need to call and bug them and make sure you get off the list. I will see if I can find the number I called fo that for you to call and post this information for others to use.
04-03-2013 03:20 PM - edited 04-03-2013 03:20 PM
thank you, i gave them a call. they said they will clear it within 1-2 business days. should i call back in 2 days to verify?
04-03-2013 07:14 PM
They Will Clear It Within that time frame, if they tell you it will be done , they will do it. IF you are getting a home you can advise the lender to do a check in about 4 days and you should be fine. Let me know how it turn out and Stay Blessed!
04-04-2013 08:18 AM
I'm in a similar situation. Loan not on credit report, but showed up in Caivrs during processing. Thanks to you, applied for consolidation. Wondering though if once the payment has been made, is it okay to contact Dept of Ed? We don't need it to update on credit report, just cleared from Caivrs to move forward.
Time is ticking on closing. Any insight you can provide is greatly appreciated.
04-04-2013 08:45 AM
Yes it OK to contact the department of education once your loan is consolidated, in fact I ENCOURAGE IT, if you need to get off caivrs in a crunch and you trying to qualify for a home, this is the best way. You will not need to update on your credit report, as it can only be seen by lenders or those trying to qualify for any government backed loans. They are friendly and will respond to your request, it will take about 3 to 4 business days for them to get you out the government system. I was in the same boat, but stay the course because the clock is ticking. STAY ON TOP OF THIS, because this one thing can derail your chances for a home loan.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO