New Visitor
Posts: 1
Registered: ‎07-06-2013

Question about loan rehabilitation

Several years ago I took out a subsidized and unsubsidized Stafford loan; the lender was HSBC and the guaranty agency was NYS Higher Education Services. Both loans defaulted and went into collections. I arranged for loan rehabilitation with the collection agency, which should be completed at the beginning of 2014.


On my credit report, I have three negative marks: two from HSBC (one for each loan), and one from NYS Higher Education Services (for the sum of both loans). The HSBC entries say "Student loan assigned to government", and the Higher Education Services entry says "At least 120 days or more than four payments past due". 


My question is: when I complete loan rehabilitation, will the default be removed from all three entries? 


Thanks for your help!

Community Leader<br> Valued Contributor</br>
Community Leader
Valued Contributor
Posts: 1,104
Registered: ‎06-09-2008

Re: Question about loan rehabilitation

All default notation should be removed from your report.  Some lenders remove just the notation and mark the account "paid as agreed" or similar, but others will remove the entire tradelines, or the lates that lead up to the default.  Is your collection agency reporting?  That tradeline should disappear entirely once the loan is sold back to a regular servicer.

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+