Student Loans

[richmc]

I just payed my last payment of the rehab program. On my CR I have 3 Aes/Pheaa CL's that show assigned to gov  ($0 Balance)and a CL for Ntlstdntln($7771 balance) that says

Collection account

Defaulted loan - claim filed against guarantor

What exactly changes once you finish the rehab process?

[Timothy]

When you finish rehab-

The Default staus is removed- should be "pays as agreed" and the loan is returned to a servicer (original or a different one)

The collection accounts will also be removed.    

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richmc wrote:

I just payed my last payment of the rehab program. On my CR I have 3 Aes/Pheaa CL's that show assigned to gov  ($0 Balance)and a CL for Ntlstdntln($7771 balance) that says

Collection account

Defaulted loan - claim filed against guarantor

What exactly changes once you finish the rehab process?

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[richmc]

Thats just it. they are not under collection on my CR. They are still under open accounts but in the remarks say turn over to guarantor or turned over to government.  If I understand correctly, they will change from derog to current but the lates will still show up. Is this correct? If correct then it really won't have that much effect on my score will it since all the lates will still be there?

[richmc]

I called ACS and talked to them about this and was told only the Ntlstdntln comes off. With the others they said if they aren't brought out of dergo on the CR, most people just dispute with the CRA and since Aes/Pheaa was already paid by the government, they usually don't respond to the dispute and it gets deleted. Is this legal?

[LynnInMN]

When your defaulted loan is rehabbed, ONLY the guarantors trade line is marked as paid as agreed.  The lender or servicers negative remarks remain.  They will age off 7 years past the claim paid date.

[richmc]

So in other words, my score won't be effected that much with only the one CL turning positive and the other 3 remaining derog.

[Timothy]

No-

The Account status counts TONS more than the lates-

Default and Charge off= score killer

The lates will soften very quickly - look for a major bump when the dafault status is removed- and when you have 12 and 24 months of clean payments.

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richmc wrote:

So in other words, my score won't be effected that much with only the one CL turning positive and the other 3 remaining derog.

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