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I also rehabilitated my loans but they removed some but not all of the Sallie Mae and USA Fund negtive trade lines. Did you call or write(snail mail) to get your response.
Lj
Here is the link to the Loan rehab program that states the defaults will be removed. But I also have a document that states that my negative credit statements will be removed from the the company servicing the rehab program I completed.
http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html