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For those of you who have had defaulted on student loans, but have since completed so-called Rehabilitation loans, how are your defaulted loans reporting on your CR's?
My 6 defaulted loans are from NelNet.
On TU, they are reporting a $0 balance, but "derogatory" and "late 120 days" and "closed."
On EX, they are reporting a $0 balance, but are "derogatory" and "collection/chargeoff" and "closed."
On EQ, they are reporting a $0 blance, but are "Open (paid)" and "late 120 days" and "open."
Is this how they are supposed to report? TU and EX show them closed while EQ has them open?
My current Sallie Mae loans are all current since the payments started in Dec 08.
I guess I lucked up. I had all Direct Loans. I was in default on my loans from 2001-2006. I called Direct Loans. By the stroke of luck, they had just pulled my loans from the CA and was about to place with another CA the next day. That saved me $5,000, that was the fee the CA was charging in excess of the actual loan. Anyway, after the rehab was complete, the US Dept of Ed updated my CR to say current and paying as agreed, and all of my late payments and derogs were removed. However, the SL was completely deleted on EX. I'm in the process now of trying to get my SL reporting to EX.
Even though I took a Direct Loan each semester, for credit reporting purposes, its just one loan. Probably because its from the same lender (the US Dept of ED.) I was fortunate because I didnt have to deal with a CA, just the OC!
The negative Collection Accounts from USAF (loan guarantor) were removed once my loans were rehabilitated, but the servicer of the loans (Nelnet) has kept ALL of the negative info.
I have not consolidated my loans, but I've never heard that doing so removes negative TL's from your CR.
I had a one loan go to default do to an error on my part while all my others were in deferment. I rehabilitated the one loan and then consolidated it with other loans to keep everything together ro prevent future clerical screw ups dealing with just one servicer the fed governement. The rehabilitated and then consolidated loan did not show up as a negtaive mark on my CR. It looks just like all my other loans that were consolidated.
There are many benefits to rehabilitating a defaulted loan before consolidation. If you consolidate a defaulted loan without rehabilitating it, your credit record continues to show a default status on the loan. This is true even after the consolidation loan pays off the defaulted loan in full.
However, if you rehabilitate a defaulted loan before consolidating it, the loan holder will update your credit record to no longer reflect the default status of the rehabilitated loan(s).
so your original defaulted loan shows "current" and the late(s) have been removedon your CR
AND
you have a consolidation loan on your CR that includes the original loan?
Nelnet is my servicer, and is reporting as 120+ days late on all of my rehabilitated loans. Who was the servicer on your defaulted loan?
bumpity bump for Lynn, the SL guru of myfico.com.
....or anyone else with GW advice on SL's.