Credit Card Center Advertiser Disclosure†
07-02-2014 09:31 PM
What type of loans are these, federal or private?
In either case, consolidating your defaulted loans together will likely have little impact on your score. You will close the negative account and open a new positive one, but none of the negative information will fall off your report until 7-7.5 years from the date the accounts first went late leading up to the default (that's the date of first delinquincy or DOFD). Consolidating is a good option to get the collection agencies off your back and get back on a steady repayment plan though.
If they are federal loans, you might be more interested in rehabilitation. Rehab requires you to make 9 on-time monthly payments before your loan(s) are out of default, but at the end of the nine months all the default notations will be removed and you'll get new clean tradelines dating back to when you opened the loans. Those changes can have a substantial positive impact on your score. If you're looking for score improvement and can wait 9 months, I would definitely reccomend rehab for any defaulted federal loans.
07-12-2014 12:51 PM - edited 07-12-2014 01:13 PM
Can Charged off Student Loan be Re-habbed by paying 9 payments? How do i know if it is a federal loan or a private loan
I have Wells Fargo Educational Services listed on my charged off Wells Fargo Education loan?
07-12-2014 05:07 PM
Only federal loans can be rehab'd through the 9 payment process. An easy way to tell if a particular loan is federal is to check the National Student Loan Data System (nslds.ed.gov), if the loan is listed there, it is federally-backed. That site will also give you the contact information for the current holder of the loan, which is who would handle your rehab.
I don't think Wells Fargo ever handled private loans, but I could be mistaken about that, so check the NSLDS. If it is a private loan, unfortunately, your only option is to work with the lender/collection agency on a settlement or payment plan.
07-13-2014 06:39 PM
I have two private loans from Wells fargo. The government no longer uses banks to service their loans. The US department of education brought all their loans back from the banks and are now servicing them so all your loans on your credit report (if government loans) should now say FED LOAN SERVICING. If you have something on there that says Wells Fargo educational services it may be a private loan. If it is a private loan I don't think they offer a rehab process. Private student loans are the worse. The goverment offers so much more comfort and payback availability with their loans. If at all possible and if you have to take out future loans I would advise to stuck to government backed loans. Private lenders are under no obligation to "help" you if you are ever in a position where you can't pay.
07-13-2014 06:53 PM
My loan default says Chargeoff.
Nowhere does it say Fed Loan Servicing
It does say Wells Fargo Educational Services; so must be a Private Loan with no Rehab? what else can i do?
I m doing this for my niece. My wife's Sister did co-sign the loan. Now the primary is nowhere to be found.
Private lenders are under no obigation to help you if you are ever in a position where you can pay. What does that mean?
I m screwed every which way i look at it.
Maybe Garnishing, the loan is in Georgia
07-13-2014 07:20 PM
Private student loans work a lot like other installment debt - when you default your only option is to try to work with the collection agent or original lender on a settlement or payment plan. If the loan is within the Statute of Limitations, the primary borrower and co-signer can be sued, and if a judgment is issued against them, their wages can be garnished and bank accounts seized.
Private student loan lenders are not required to offer programs like rehab, income-based payment plans, or forgiveness. But, like any other installment debt, you may be able to neogotiate a settlement for less than the total owed, or wait out the SoL/credit reporting period and hope for the best. There are plenty of good resources in the Rebuilding Your Credit forum for contacting a creditor about past due balances and trying to work out settlements or more affordable payment plans.
The co-signer may also be able to take the primary borrower to court (if that is something they are comfortable with doing) to compel the primary borrower to pay the debt and/or pay them back for payments they did not agree to make.
07-14-2014 05:44 PM
so nothing in the post i described earlier says that this could be a Government backed loan.
As far as I know, Wells Fargo never serviced federal student loans. Federal loans also do not have co-signers - because they are not based on the student's credit. I think you are dealing with private loans.
07-16-2014 05:24 PM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.