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Established Member
Posts: 16
Registered: ‎06-13-2014

Just finished student loan Rehabilitation, need help with removing lates/possible GW letter

Hi all,

 

Once upon a time I had student loans directly from the US Department of Education that I completely ignored which of course defaulted. The only payments made towards them in the past 5 years or so have been by taking my tax refund from me. Early this year I decided to fix my credit, learned about the Rehabilitation program, and started making payments. Earlier this month I made my final Rehab payment, and have completed Rehabilitation. I called the Default Resolution Group's # today and they said that as of yesterday, 11/16/2015, I have completed Rehab and that I may now contact my new loan officer, Fedloan Servicing at 800-699-2908 to set up my new payments. 

 

My question is simply how to proceed? It is my understanding that the default status will be removed from my credit reports within 45 days of completing rehabilitation (yesterday, so 45 days is 12/31/15). But I also want to attempt to remove the years of late payments off my reports as well. I know it's very YMMV, but I still need to try, especially since we're planning on applying for our first mortgage as soon as the default (and hopefully lates) get removed.

 

What is my next step? Do I wait until 12/31/15 and see if both the default and lates are magically removed? Do I contact the new loan officer Fedloan Servicing ASAP, or should I wait until I see if the lates come off with the default first or if only the default comes off? Or is there no need to wait, and do I start with a GW letter now? Does this GW letter go to Fedloan Servicing, since it appears that the US Department of Education is apparently no longer involved? Should I call Fedloan Servicing to setup payments, but make no mention of my GW letter that is following via mail? Do I put off contacting Fedloan Servicing via phone entirely before sending the GW letter, or should I contact Fedloan first to set up payments and then and only then send the GW letter? 

 

Finally, GW template link?

 

Thank you very much!

Regular Contributor
Posts: 160
Registered: ‎01-30-2015

Re: Just finished student loan Rehabilitation, need help with removing lates/possible GW letter

This is what I did. I completed rehab 10/2.. NAVIENT picked the loans back up 10/9, but never contacted me. Anyway, after learning they were picked up I contacted them and was told the same story... Within 60 days removal. I didnt really feel like waiting although the reasoning is because they have 30 days to report to the bureaus and then the bureaus have 30 days to update the changes on your credit reports. Anyway, I disputed each collection for each timeline. Removed within 15 days. (they cant confirm the defaults since they are picked up my new lender). Scores rose 20-40 pts each. But I still had the late marks on each bureau for each timeline. Was hoping to have them removed. So I disputed each of those TLs under INACCURATE DATA. They are currently being processed and if Im successful I will update you. But again, for any defaults DISPUTE them now as INVALID. 

 

Side note: With the addition of the new rehabbed TLs your AAoA will rise significantly. It helps raise your scores as well. Especially since the new TLs are backdated with no late payments ever. A great positive!

Established Member
Posts: 16
Registered: ‎06-13-2014
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Re: Just finished student loan Rehabilitation, need help with removing lates/possible GW letter

To remove the defaults, did you just do a straight online dispute? Phone? Snail mail? What did you dispute them as?

Regular Contributor
Posts: 160
Registered: ‎01-30-2015
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Re: Just finished student loan Rehabilitation, need help with removing lates/possible GW letter

Experian was a call in because I was locked out as ALWAYS.... Even after calling them and verifying identity, disputing and then having it removed I still cant dispute online. EQ and TU were online. TU of course was the fastest to remove them. The others maybe a day or 2 after. Either way of disputing will still result in the same outcome.

Established Member
Posts: 16
Registered: ‎06-13-2014
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Re: Just finished student loan Rehabilitation, need help with removing lates/possible GW letter

[ Edited ]

I will do online then. What did you dispute them as, for the reason of dispute? For example; Payment never late, not mine or no knowledge of account, account closed, unauthorized charges, balance incorrect, identity theft, etc...

 

And please do update me how your lates dispute eventually ends up, good or bad. 

 

Edit: If I'm reading your post correctly, I dispute the defaulted timelines as INVALID? Address the lates later?

 

2nd Edit: I looked at Experian dispute online first and from the drop down menu for reasons for dispute, I don't see an INVALID option. Just ones like the above examples. 

My choices:

Payment never late

Not mine or no knowledge of account

Account paid in full

Account closed

Unathorized charges

Belongs to ex-spouse

Balance incorrect

Included in bankruptcy

Belongs to primary account holder

Belongs to other person with same or similar name

Identity theft

Other

 

If I select other, it tells me to call. Can I select any of the above or should I just call? Any disadvantages of calling (other than time spent?)

 

THIRD Edit:

I called my new loan officer FedLoan Servicing and they said that they won't be taking over the loan until 11/25. Should I wait until then to dispute the defaults?

Regular Contributor
Posts: 160
Registered: ‎01-30-2015
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Re: Just finished student loan Rehabilitation, need help with removing lates/possible GW letter

[ Edited ]

For Experian I would advise to call in. I got a hold of someone in the states so they were helpful and can answer any questions you have. Number I used was 714-830-7000. Yes, you can dispute now. Since you have finished your rehab technically, they are no longer in default. They just have not been picked up yet. Therefore even if they send off to collection agency to verify default, they cant. They are rehabbed. You can always wait if you want to be sure, but whether you dispute now or wait for they to update, the results will be the same.

Established Member
Posts: 16
Registered: ‎06-13-2014

Re: Just finished student loan Rehabilitation, need help with removing lates/possible GW letter

An update (and quick recap)

 

11/17/15 - Finished rehab from US Dept of Education. Informed that FedLoan Servicing will be new loan officer.

11/23/15 - Disputed my student loans to all 3 CRAs (TU/EQ online, EX phone). I stated that I completed rehab and any negative/default marks on any student loans should be removed. 

 

11/30/15 - Creditkarma scores for TU/EQ jumped up to 740! Actual TU FICO 753! Looking closer I saw that my US Dept of Edu student loan accounts were completely deleted from my reports. The loans aren't still on there with default status removed, or with lates or lack thereof, they are just completely removed. My AAoA took a tiny hit from these being completely removed but my payment history and lack of default/collections got a massive boost. I called EX and confirmed they were straight up completely removed as well. 

 

12/1/15 Feeling brave, I applied for Chase Sapphire Preferred and got instant approval for 9K (I have never gotten an instant approval ever!)

 

While I'm still ecstatic, it has me thinking - was it correct of them to straight up remove these accounts? I was under the impression only the default status was going to get removed, and it would be a guessing game as to whether or not I could get the lates removed as well. As of 11/30 my new loan officer (FedLoan Servicing) does not show up as a new account on my reports yet. Should I just be happy that the bad student loans got removed completely, or should I be worried that then FedLoan fully takes over the accounts they will then start reporting their long bad history and all of a sudden the lates return to my reports? I'm hoping my new loan only shows up as just that, a new loan, with nothing late. I reached out to FedLoan Servicing a couple weeks ago to arrange payments but I was so new I wasn't even in their system yet; they said to wait about a month before they fully take it over. 

New Contributor
Posts: 124
Registered: ‎09-14-2014
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Re: Just finished student loan Rehabilitation, need help with removing lates/possible GW letter

This is fantastic news! Congratulations! I may use this same dispute approach if I don't get a response from Sallie Mae, GC Services or US Department of Education. I wrote each of them in late November but haven't gotten a response back yet!

 

Thank you for outlining each event and each outcome!


ManImCool wrote:

An update (and quick recap)

 

11/17/15 - Finished rehab from US Dept of Education. Informed that FedLoan Servicing will be new loan officer.

11/23/15 - Disputed my student loans to all 3 CRAs (TU/EQ online, EX phone). I stated that I completed rehab and any negative/default marks on any student loans should be removed. 

 

11/30/15 - Creditkarma scores for TU/EQ jumped up to 740! Actual TU FICO 753! Looking closer I saw that my US Dept of Edu student loan accounts were completely deleted from my reports. The loans aren't still on there with default status removed, or with lates or lack thereof, they are just completely removed. My AAoA took a tiny hit from these being completely removed but my payment history and lack of default/collections got a massive boost. I called EX and confirmed they were straight up completely removed as well. 

 

12/1/15 Feeling brave, I applied for Chase Sapphire Preferred and got instant approval for 9K (I have never gotten an instant approval ever!)

 

While I'm still ecstatic, it has me thinking - was it correct of them to straight up remove these accounts? I was under the impression only the default status was going to get removed, and it would be a guessing game as to whether or not I could get the lates removed as well. As of 11/30 my new loan officer (FedLoan Servicing) does not show up as a new account on my reports yet. Should I just be happy that the bad student loans got removed completely, or should I be worried that then FedLoan fully takes over the accounts they will then start reporting their long bad history and all of a sudden the lates return to my reports? I'm hoping my new loan only shows up as just that, a new loan, with nothing late. I reached out to FedLoan Servicing a couple weeks ago to arrange payments but I was so new I wasn't even in their system yet; they said to wait about a month before they fully take it over. 


 


Starting Scores FICO08 (July 18, 2013): EQ: 537 | TU: 537 | EX: 537
Current Scores FICO08 (January 11, 2017): EQ: 724 | TU: 721 | EX: 724
Goal Score FICO08: 740
Established Member
Posts: 16
Registered: ‎06-13-2014

Re: Just finished student loan Rehabilitation, need help with removing lates/possible GW letter

I can confirm that to date, nothing has changed since my last post. The old defaulted student loans still remain completely off my reports. Hopefully nothing changes in a negative way next month when I make my first payment to my new loan officer. 

Community Leader
Senior Contributor
Posts: 4,979
Registered: ‎04-27-2014
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Re: Just finished student loan Rehabilitation, need help with removing lates/possible GW letter


ManImCool wrote:

I can confirm that to date, nothing has changed since my last post. The old defaulted student loans still remain completely off my reports. Hopefully nothing changes in a negative way next month when I make my first payment to my new loan officer. 


That's awesome!


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