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Perkins Loan and Chargeoff

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tfkallday
Frequent Contributor

Perkins Loan and Chargeoff

Hi all, I have a Perkins loan through my college which I defaulted on.  I was working with Williams and Fudge Inc. to rehabilitate this debt (they called it a rehab the whole time and told me I couldn't pay it off because that would void the rehab)... Anyway to make a long story short I made payments of like $450/month until the $3200 was paid off. Got confirmation it was paid, this was sent to my school, which sent me a letter, which I copied and forwarded to EXPERIAN the only one reporting this loan.

 

Fast forward and my report is updated as "Paid, Current" .. There is no balance left, shouldn't it be paid and closed?  Also, it is reporting as Charged off May 2012-May 2013 and "OK" June-Current....

 

 

I started this rehabilitation in January 2013.  Do I have a dispute on my hands?  Is this CO status affecting me?  What should I do next?

Thanks!


Starting Score April 2013: 556
Current Score March 2014: 682
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Message 1 of 7
6 REPLIES 6
tfkallday
Frequent Contributor

Re: Perkins Loan and Chargeoff

PS it is reporting (1) 30 day late, (1) 60 day late, and (9) 90 day lates and here are the remarks they listed:

 

"Current account/was a collection account, insurance claim or government claim or terminated for default.


Starting Score April 2013: 556
Current Score March 2014: 682
Goal Score Soon (-: 700


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Message 2 of 7
tfkallday
Frequent Contributor

Re: Perkins Loan and Chargeoff

Bump anyone?>?


Starting Score April 2013: 556
Current Score March 2014: 682
Goal Score Soon (-: 700


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Message 3 of 7
IOBA
Senior Contributor

Re: Perkins Loan and Chargeoff

The CO status/the delinquent account/the CA status does hurt your credit score.  It will lessen as time passes.

 

If it shows as paid/current -  that is a good thing.

 

If it shows on time payments since you started "rehab" - that is a good thing.

 

The general rule of thumb is that baddies that are 2 years old + tend to have less bearing on the credit score.

 

At best, you could goodwill the CA and ask them to remove the tradeline/collection.  

Message 4 of 7
scvbd99
Frequent Contributor

Re: Perkins Loan and Chargeoff


@tfkallday wrote:

Hi all, I have a Perkins loan through my college which I defaulted on.  I was working with Williams and Fudge Inc. to rehabilitate this debt (they called it a rehab the whole time and told me I couldn't pay it off because that would void the rehab)... Anyway to make a long story short I made payments of like $450/month until the $3200 was paid off. Got confirmation it was paid, this was sent to my school, which sent me a letter, which I copied and forwarded to EXPERIAN the only one reporting this loan.

 

Fast forward and my report is updated as "Paid, Current" .. There is no balance left, shouldn't it be paid and closed?  Also, it is reporting as Charged off May 2012-May 2013 and "OK" June-Current....

 

 

I started this rehabilitation in January 2013.  Do I have a dispute on my hands?  Is this CO status affecting me?  What should I do next?

Thanks!


I dealt with Williams and Fudge for my defaulted Perkins Loan as well.  I had to threaten to call the federal ombudsman to get them to send me a rehab agreement because they tried browbeating me to paying it in full.  

 

Did you sign a rehab agreement with them, and get the 9-month payment schedule? Or did you just pay it in full over a course of a few months?  

 

I'm sorry to say this, but if you didn't sign a rehab contract that they sent you, and you paid it in full, then you did not actually do rehab.  Neither they nor the school holding your Perkins loan are required to remove any of the negative reporting if that's the case.  I'm sorry.  

 

If you did pay it in full, it should not be reported as a charge off, so you can dispute that. 

800+ for all 3 CRAs.

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Message 5 of 7
tfkallday
Frequent Contributor

up I thRe: Perkins Loan and Chargeoff

Yup I think that is exactly what happened.  I failed to get it in writing but  I am happy it is out of the way.  I do have a basis for dispute as they were not reporting my rehab payments for half the time so I guess I can dispute that.  I am not too worried about this one because it is only on 1 report but I will obviously try to get it removed either way.  Thanks for all the information


Starting Score April 2013: 556
Current Score March 2014: 682
Goal Score Soon (-: 700


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Message 6 of 7
Efour
New Member

Re: up I thRe: Perkins Loan and Chargeoff

I recently rehab'd a perkins loan through conserve and I know for a fact that you must have them send you a seperate rehab form to sign and have on record in order for the negative items to be removed from your record. Perhaps you can communicate with the collection agency and have them send you the form after the fact! Let us know how it goes!

Equifax (My Fico): 608 as of 4MAR2014 (Starting)

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Message 7 of 7
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