Defaulted Student Loan consolidation - Score Improvement?

[Anonymous]

I have 7 student loans (3 from 2006, 4 from 2013) that are ALL 120+ days past due and in default. My consolidation was approved today and the DOE advised i should have the new payment information and the old loans should be listed as"paid in full" by June 2012. Has anyone ever been in this situation and how was your credit (positively) impacted by the new loan kept in good standing and the old loans showing paid?

[Anonymous]

They do not update as paid in full. The balance gets changed to 0.

If you're lucky they will say 'paid in full by consolidation'... 

I also made the mistake of consolidating defaulted student loans, and bank of america has refused since 2014 to reflect that it was paid, has a 0 balance, and to remove the 'current status' of '120+ days past due'. I have disputed this repeatedly to no avail, and they claim they don't have to update any of that. The only success I had was for them to remove the balance with a dash.

Rehabilitation is really the only way to get the default history removed.

[Anonymous]

Ya i know, but i had already screwed up my one shot at rehabiliation so really my only option was consolidation or wage garnishment. OK so i know that they wont show paid in full and all the lates will still stand, now my question is when does the "clock" on the 7 years to fall off start. Is it from the time they are "paid by consolidation" or from the first or last late payment? The loans were late and brought current and then late again so many times... so basically every time i brought them current was i "restarting the clock." 

ahhh... i wish i could go back in time and kick my own butt, its so depressing to be 30 years old and look back at all the stupid things ive done and realize i will probably never be able to own a home or decent car... or really even get a decent rental. ya live and ya learn i suppose.

[dragontears]

Each late payment will fall off 7 years after it was reported, i.e. with multiple lates they don't all fall off at the same time instead each falls off when it reaches the 7 year mark.

[Anonymous]

ughhh. ok thanks for the reply!! now as far as the loan itself not showing, will that be 7 years from when it was paid/consolidated... and any idea what kind of bump/timeline for improvement i can expect from maintaining on time/good standing on the new consolidation loans? im reading like crazy but its soo much to take in. i feel like with having basically no extra income after bills im never going to get out of this hole...