Duplicate Reporting after Student Loan rehab. Help!

[Anonymous]

So I defaulted on my Student loans in 2009. I was just out of school, couldn't find a real job and just couldn't pay. I was an idiot and didnt know what to do so I just avoided the problem. About a year later I got my first half decent job, and they got a wage garnishment, and I just lived with it for about 5 years, bc they wanted me to make payments ontop of the garnishment and I couldn't. Finally I started to get on my feet financially, and realized that my credit was so bad bc of this mess that people questioned my cash literally. Chase denied me a checking account, and BOA denied me a secured card. SO I finally started looking into options and ended up rehabbing my student loans. 

So my loans finished rehab in May and were picked up by Navient. 

I decided this summer to get my credit in shape and have gotten 6 new TL's and over 30k in credit as well as raised my score over 150 pts. Now between clearing up collecitons and a couple other things, my CR's are basically spotless EXCEPT for my student loans. 

This is what's going on. Each loan (total of 6) has TWO trade lines now. One for navient that shows pays as agreed bc I have been since May. AND the original one from Sallie Mae which shows a charge off and about 7-8 months of 180 day late payments, with the note that "debt being paid via insurance claim". 

So I have 6 derogatory trade lines for the loans from when they were with Sallie Mae, and 6 OK trade lines from when Navient Picked them up. Is this the way they should be?? I mean its THE SAME LOAN. The people at FAMS (collection agency that handled my rehab) said that all record of the default would be erased from my credit when I successfully completed rehab. I really want to get these negative trade lines off my CR's bc I'm sure they are costing me valuable points, but where do I begin?

DO I dispute the Sallie Mae TL's with the CRA's? 

DO I contact Navient and explain that Sallie Mae is still reporting?

DO I contact Sallie Mae and explain that the loans have been rehabbed and are now owned / serviced by Navient??

Can anyone point me in the right direction??

Thanks in advance,

George

[SCF]

The reporting you are seeing is mostly correct.  The original tradelines, along with the lates that led up to the default, can remain on your credit report after you complete your rehab.  What should be removed is the status/comment of "debt being paid by insurance claim."  That is a remark relating to the default, and all of those should have been removed when the rehab was completed.

I would start by contacting Sallie Mae and providing them with the paperwork showing that your rehab was completed.  Hopefully, since they've spun all the federal loans off to Navient, it will just be easier for them to delete everything, but they should at least remove those comments.  If they refuse, you can move on to a dispute with the CRAs.