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Valued Member
Posts: 27
Registered: ‎08-28-2017
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Loan Rehab - Fedloan Serving new servicer ... new tradelines?

I am still pretty impatient on getting my new servicer so I went ahead and called the Defaujlt Resolution Group and they told me that FedLoan/PHEAA is my new servicer.  Whoohoo!  I went ahead and called them just to get a feel for what they had to say, knowing full well they likely didn't have any account information yet.  Well, they had me in their system, so I was able to set-up my account online and had a really good conversation with their CS rep.

 

My question is--for anyone that has rehabed their federal student loans--how did the tradelines change between the default & FedLoan taking over?  Are therenew trade lines  or do they continue from the prior trade lines? 

 

My last hard pull showed that my rehab payments were being reported (albiet, incorrectly) and if I can get the reporting corrected, I would be ESTATIC with 9 months of payment reporting during my rehab period.

 

 

Regular Contributor
Posts: 150
Registered: ‎04-14-2017
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Re: Loan Rehab - Fedloan Serving new servicer ... new tradelines?

I think how this looks varies more based on the prior servicer than the current one.  Personally, my old tradelines were deleted on 2/3 of my reports and replaced with brand new ones dating back to the origination of the loan with clean history.  I also disputed the old tradelines, so I'm not sure if this is what would have happened or if it was a result of the disputes.  You should have the new tradelines dating back to the origination of the loan, but the old tradeline is the wildcard.

Valued Member
Posts: 27
Registered: ‎08-28-2017
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Re: Loan Rehab - Fedloan Serving new servicer ... new tradelines?

Well, good things are finally starting to happen!  Or maybe I should say "hard work is starting to payoff"?  My TU score jumped up 30 points over the last few days.  All I can tell, for right now, is "the balance of my personal accounts increased" per the MyFico alert I recieve via subscription.  It *looks* as though the tradelines for my default may now be reporting under the new servicer, or that is what I anticipate.  I do not think the old ones have been removed yet.

 

I did end up ordering the current credit report but can't find the change.  I may call MyFico on Monday to have them help me navigate (otherwise, I wasted $20 on the current TU report and will not be happy).

 

For anyone interested in my rehab timeline:

Enrolled January 2017 - nine consective payments were made on the 24th of each month with the exception of the 9th payment which I made early for the9th month (if that makes sense).  I wanted to make my last payment early to help get my loan transfer completed & reporting changes done expediously.

September 8, 2017- Made 9th & FINAL payment in Rehab Program

September 15, 2017 - Called US Dept of Ed to inquire when credit reporting would be updated, during that call they told me that my loans were "picked up" by FedLoan Servicing - called FedLoan Servicing & confirmed they had my loans but no repayment/actual account info yet.  Still was able to make my account online.  

September 30, 2017 / October 1, 2017 - Logged into FedLoan Serving just out of curiousity & they had my loan amounts in their system but no repayment information.  Plan to call them on Monday to get payments set-up.  At this same time, my credit score went up 30 points with TU.  I ordered my new credit report but don't see the new trade lines and I don't see a change to the default.  Actually, I see no change but a random increase 

(any thoughts on the above would be greatly appreciated!!)

 

I've also been doing some other clean-ups:

March 2017

-Paid off collections for a state income tax and cable tv bill from when I moved

September 2017

-Paid off another utility (really need to shore up my moving paperwork when I move next time lol)

-Paid off a really old First Premier Bank card (balance was $379, settled for $130 - a huge victory)

-Paid off my credit card (was only $500, but I was not utilizing correctly)

 

With this SMALL jump my TU score now qualifies for FHA and I am eager to see what happens with the other 2.  I am also eager to see what happens when the collections trade lines are removed.

 

I'm not one to gloat, and I really hope it doesn't come across as such, but as a single woman with NO HELP from their parents, two very challenging job losses, to be able to see this positive movement is a sense of accomplishment I can't describe.  I always said "I know I will have good credit if I am in the right situation" and it felt FOR YEARS that I just couldn't get to that situation.  I know I am good with my money, I watch it like a hawk--you have to after suffering job loss with NO INCOME lol

 

I am trying to decide now if buying a house is really the way to go for myself.  I understand the equity piece of it, but after recovering from a debt mess from my job losses, there is still a fear that it could happen again with much larger magnitude.  I understand recovery is possible, and that I can't live my life in fear, but I'm just not convinced that more debt is the answer right now.  My lease is up in February and they will start bugging me to renew in December and it may make better sense to take another year and snowball some of this debt.  I have EIGHT student loan accounts, and credit cards, so paying off balances on some of my smaller accounts doesn't phase me regarding credit history/mix.

 

 

 

Established Member
Posts: 13
Registered: ‎09-04-2017

Re: Loan Rehab - Fedloan Serving new servicer ... new tradelines?

CONGRATULATIONS!!!! Our timeliness are quite similar, so I am following closely to see if our progress is similar. DoE assigned me to FedLoan as well. I currently had 2 consolidated loans with FedLoan, so I already had an online acct. My loans were rehabbed and assigned last week, but when I called I was told they didn't see the newly assigned loans yet. I am anxious to see any type of increase. As soon as I found out the Rehab was completed and assigned to a new servicer I disputed all my old TLs with TU and EQ.... hope I didn't shoot myself in the foot by doing this without seeing what the natural course of action would be. After reading so many posts here about having to go thru disputing to get things cleaned up, just figured the sooner I start the better!

 

Keep updating so we can follow along!!!

Valued Member
Posts: 27
Registered: ‎08-28-2017
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Re: Loan Rehab - Fedloan Serving new servicer ... new tradelines?

Congratulations to you too!  

 

I haven't disputed anything--mainly because I am working with a company my mortgage broker referred me to that is helping me work on some of that "clean up" reporting that I just don't have time to do & they recommended against me opening any disputes that could interfer with their work.

 

Everything regarding the TL updates has been pretty organic so far...  I'm looking forward to spending some time on the phone tomorrow figuring out WHAT exactly updated as well as talking to FedLoan to get my payments in order. I know a lot of this will be updated over the next few weeks and boy, I can't wait.  The hard part is over, but it feels like Christmas as a kid--you know something good is going to happen & you just want to find out what lol

 

Keep us updated o9n your progress as well!

Established Member
Posts: 13
Registered: ‎09-04-2017
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Re: Loan Rehab - Fedloan Serving new servicer ... new tradelines?

Well TU has completed the dispute I started on 9/26. 

 

(I disputed 34 TL, I only have 13 actual loans but they were reported numerous times per loan.)

The 13 TL that were labeled US Dept of Ed were all deleted!! Yayyy for that success!!!

Buuuut... The other 21 that are all attached to Sallie Mae came back as verified and updated.😕😕😕 Guess I'll find an older report to see what actually was updated.

 

So far with my EQ it's still in the works,  but I can't check the progress because for whatever reason they have locked me out of the online access and I have to call in to check.

(I disputed 18 TL on 9/27, same situation with numerous reportings.)

But, on the potentially bright side, I pulled a 3B report and there are only 7 total TL reporting that are related to SLs all of which are showing Dept of Ed. Hopefully those go bye bye too! (Fingers Crossed)

 

I had to dispute Ex by phone, which I did yesterday. 39 were showing when I initially attempted it online on 9/26. When I spoke with an agent yesterday 13 US Dept of Ed and 13 Navient were showing (all of which I disputed). So with Ex it looks like nature was taking course before the dispute! I am praying for successful deletions of ALL!!!

 

Placed another call to FedLoan to see if they had received my loans yet.... Nope! 

Soooo, guess I'll keep waiting to see what's next.

 

I checked my Fico scores on Sunday and I had increases on all 3. 

10/01 Eq-678 TU-679 Ex-677

9/05   Eq-671 TU-624 Ex-662

 

Now I am wondering what I can do about the verified and updated with TU for Sallie Mae😞😞😞

 

Valued Member
Posts: 27
Registered: ‎08-28-2017
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Re: Loan Rehab - Fedloan Serving new servicer ... new tradelines?

Are the Sallie Mae ones Federal?  Are they your new servicer?

 

My 30 pt jump wasn't for any progress on TL changes with the federal loans.  I should have realized that between Credit Karma & here--it was from simply TU being able to report my current private loan payments with Navient.... they weren't reporting during the dispute.  Navient private loan repayment reporting has been a complete other hassle that I am currently dealing with.That's not even a story for here lol

 

I called Fedloan Serving on Monday, got my new payment amount and filed for an extended standard repayment.  They are having me make three more months of my rehab payment then will let me know about my repayment schedule moving forward.  My rehab payment is $250, the 10-year standard repayment would be $380-ish, and the 25-year extended repayment would be $275.  They told me as soon as my first payment to them is made, they start reporting to the credit bureaus.  So I don't expect the trade lines for them to show up until sometime in November.

 

I then called US Department of Education & they told me 30-45 days after rehab is complete (their date of completion is 9/18, mine is 9/8.... i guess they count from when they get their paperwork vs when payment was made. Touche lol).  

 

So I am still practicing patience.  

 

I commend you and many other people that are attempting to verify the loans on your own.  My mortgage broker referred me to a service that he has used in the past and I *believe* they are doing the same.  My job industry is go-go-go from May-November and I feared not having enough time to do them myself effectively or effeciently.  

Established Member
Posts: 13
Registered: ‎09-04-2017
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Re: Loan Rehab - Fedloan Serving new servicer ... new tradelines?

All of my loans were federal.  FedLoan is my new servicer.

 

Yeah, US DoE gave me that 30 to 45 day time frame as well... 

 

I'm anxious to see what happens once FedLoan adds those new TLs on... (I don't rely on Credit karma, but I do look at it) but my EQ on CK dropped 45 pts with the deleted accts bc it hit my AAOA HARD! 

Frequent Contributor
Posts: 480
Registered: ‎03-13-2017

Re: Loan Rehab - Fedloan Serving new servicer ... new tradelines?

I am also with FedLoan, but I chose consolidation as my method of rehab back in February 2017. We are buying a home and my Perkins loans had defaulted so I either had to come up with $1,300 to pay them or do the consolidation. I didn't go with rehab because I would have had to wait the 9 months for the default to show as resolved. 

 

I commend you for moving toward the right steps and going after your dream of homeownership. When we first started the buying process, I had unpaid collections/charge-offs and defaulted student loans so I just knew there would be no way we could get approved for the house because of my credit. Well, here it is 8 months later and I've been able to raise my mortgage scores by 102-104 points, so you can do this too!

FICO8 Scores - 625TU / 640EQ / 649EX
On Mortgage Journey
Starting Mortgage Scores (Feb 17) 523EQ / 547TU / 564EX
Mortgage Scores Aug 17 624EQ / 649TU / 650 EX
Valued Member
Posts: 27
Registered: ‎08-28-2017
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Re: Loan Rehab - Fedloan Serving new servicer ... new tradelines?

That's really great!  I consolidated right out of grad school to try to keep things clean lol It definately is nice to see others efforts come out positive.  

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