Well, I wasn't one of the lucky ones and ran into some bad luck with my rehab. Any advice will greatly be appreciated. Also, others that are about to rehab, read this and BEWARE!
So, when I was about to rehab my student loans, I was reading on these forums about how they delete all the negative information and repost each loan with good remarks. I then Googled student loans rehabilitation. On those pages it stated how they remove the default status from your credit report. So I called up the collection agency that was over my account and we discussed everything. The guy even mentioned how my credit reporting would be fixed. After taking my information, he sent over a contract for me to sign. The contract even stated they would remove the default status.
SO....... Lets clear this up. Remove "default" status. Not remove all the past late marks on the accounts and replace them with positive marks. Basically stating they would remove the "default" status and state your "current" on your loans. Which I think is completely crazy! Because you are only allowed one rehab in your life. If you aren't going to fix my credit profile, then what is the sense of rehab? I could have just caught up on my payments and they would report the loans as current. Or I could have consolidated. So I basically wasted my one in a lifetime rehab for nothing. I seriously got nothing for rehabbing my loans except bring them current.
About my credit report and how it was reported - I had 14 original student loans, all individually reporting. After not paying them, they all showed late. After they defaulted 180 days in 2014, US Dept of ED decided to group those 14 loans into 3 loans. I'm assuming subsidized loans, unsubsidized loans, and not for sure what the 3rd loan is but is only $3000. They reported these loans as "transferred / in collection". So now I had 17 trade lines being reported all negative by the end of 2014.
Well, after completing rehab, I followed the advice on myFico Forums. 2 days after completion, I filed disputes on all 17 trade lines. Within the first week of the disputes, all 14 loans disappeared off of all 3 credit bureaus. But the 3 "transferred / in collection" accounts that were grouped together, stayed on my credit report for the whole 30 days during the disputes. All 3 credit bureaus came back with a resolution. They declined to delete the 3 accounts. But instead, 2 of the 3 accounts data was deleted and placed with "no data". So all the lates were deleted. But here is the weird part. The biggest loan amount was left with negative information for Transunion and Experian, Instead they only wiped clean the two smaller loan amounts. But with Equifax, the 2 biggest loan amounts were wiped clean, but the smaller amount was left with negative information. How they wiped away different accounts with different credit bureaus in crazy to me. They couldn't even get that information the same across all the bureaus.
This then led me to contact Dept of Ed because my problem is the reporting of the 3 loans. I never had these loans. I never consolidated these loans. But they have been reporting them since 2014. I've always had the original 14 loans from 10 years ago, not the grouped together 3 loans. I even have the written contract from my rehabilitation from 2015 that states 14 loans and doesn't mention these 3 loans. So in my eyes, its illegal to report 3 loans that I never signed for, I signed for 14 individual loans. Well I got no where with Dept of ED. They told me to contact my new service provider. My new service provider, Great Lakes, took over my account (withing 10 days of completing rehab), I logged into my account. Immediately there was those 3 accounts and not the 14 individual accounts. I called Great Lakes multiple times and tried to get resolution to why they are reporting 3 loans that are grouped together and not the 14 individual loans. They keep stating that the loans were sent over by the Dept of Ed that way and they cant change it. I keep stating I didn't consolidate my loans and they agree I didn't because those 3 would be 1 big loan if consolidated. But still no answer from no one.
I've disputed multiple times but have got nowhere. So I guess it's somewhat good that only one loan is reporting bad on each of my credit profiles, instead of all 14 loans. But I wish I was as lucky as everyone else and got a clean report. Also, my AAoA took a huge hit. Instead of 14 loans being reported, only 3 report now. And instead of reporting all the way back 10 years, those 3 loans report back to 2014 when Dept of ED grouped them together. Imagine 14 loans that are 10 years old being replaced with 3 loans that are 2 years old. Not to happy about it but I ultimately did it to myself by not paying my bills. I hope this long story helps someone and doesn't go through what I did!
