So with the old loan still reporting did doing the rehab help your credit report that much? I have some loans in default and reading through these threads it is not encouraging to rehab them.
Rehab does more than just improve your credit (which removing the default remarks will certainly do). Your loan will no longer be in a default status, which will make oyu eligible for additional student loans, remove your name from CAIVRS (which means you can now apply for other federally-subsidized loan programs, like an FHA mortgage), and you will no longer be at risk of having your paycheck garnished or tax returns seized to pay the debt.
You'll also be able to choose an affordable repayment plan to help you keep the loans current even if you have a limited income. The process is definitely worth it.
While I do plan on paying them sometime..... none of those negatives currently affect me. I am self employed so I always owe taxes and don't want any more awful student loans ;-)
That's fine, just be aware that these loans will follow you until they are paid off. And they may reappear on your report if they are given to a new collection agency (who can then place a collection account on your report - even though the loans themselves may have fallen off long ago). You're setting yourself up to run into a number of hurdles if things in your life change and you do get a regular W2 job, want to buy a home, or even go on Social Security (which can be attached to pay defaulted federal loans). As long as you are OK with those consequences, you can let those loans continue to sit in default.
The collection agency that you did your rehab with should be able to give you a letter stating the rehab was completed - send that letter to the lender who is still reporting the loans as open, and they should update the status and remove any remarks that refer to the default (such as "claim filed with gov't"). They are not required to remove the lates, but they may do so.