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REHAB COMPLETE. LOAN PICKED UP + SCORE UPDATE

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Anonymous
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REHAB COMPLETE. LOAN PICKED UP + SCORE UPDATE

Finished the rehab on defaulted Student loans early this month 04/01/2016. I paid 9 months to Allied Interstate. .... Got a letter in the mail from Great Lakes (GL) last week 04/15/2016 telling me that my loans (total 10K) were picked up & I will make payments to them now.... I was paying $5/month. GL configured that I pay $87/mo from now on. COOL! .....

 

Question: Are most of you waiting until after 45 days to start the disputing process? Or should I contact the Dept of EDU right away for an update on when the Tradelines will/can be removed ??? I can care less if they back date & update all the lates as positive ..... I really just want to see the trade lines gone completely & start over fresh with the new line from Great Lakes that hasn't yet reported. (I will update the thread when it does)

Message 1 of 20
19 REPLIES 19
Anonymous
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Re: REHAB COMPLETE. LOAN PICKED UP

Subscribing to this thread. Very curious to see how long it takes for your lates to be updated/deleted.

 

My girlfriend is going through the same process and just finished her last rehab payment about 3 weeks ago. Still has yet to hear from whoever picks up the loan now that she's completed rehab.

 

Appreciate the post - keep us updated!

Message 2 of 20
Anonymous
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Re: REHAB COMPLETE. LOAN PICKED UP

My loans got picked up by Great Lakes after a successful rehab in April 2014. My old 6 tradelines with a combined 54 120 day lates is still reporting on TU & EQ but for some reason not EX. I submitted the disputes today after reading a couple of threads in this forum and recieving an email from the Dept of Ed saying that I need to dispute directly with the CRA's. Hopefully I'll see a score bump when they get deleted.

Message 3 of 20
Anonymous
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Re: REHAB COMPLETE. LOAN PICKED UP

You can dispute the tradelines with the CRA and see if they will take them off now... it shouldn't really hurt you. Your new student loans can take a few months to show up but they will be backdated to the start of the original loans... if these and your old lines are on your report together, you could always dispute them as duplicate tradelines and request the old ones to be removed.

Message 4 of 20
Anonymous
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Re: REHAB COMPLETE. LOAN PICKED UP

Update:

 

<<<< I am impatient LOL . It has been a full week since I have disputed my defaulted tradelines with EQ & TU. I called and disputed with EX which I wish I never did because the rep I talked to flat out told me that basically she wrote "needs status updated to $0" which is NOT what I want. I told her I wanted them REMOVED. She insisted that she would not do that but I told her to make sure she wrote " I completed student loan rehabilitation, and any & all negative/default information on any of my student loans should be removed" ..... Idk what she ended up doing, but I hope its not a mess because she wouldn't even plug in my email so that I can get the alerts or stay updated when it is completed. 

 

 

MORAL OF THE STORY : Do not call Experian to dispute. Do them online yourself. I was confused because when i went online to dispute it kept asking for my report # & I refused to buy a report when I have the reports through myFICO. 

 

7 tradelines on Equifax 

7 tradelines on Experian

1 tradeline on Transunion 

TOTAL : 15 Defaulted Student Loan Tradelines .... which is essentially one single $10K student loan. lol

 

 

 

I called & spoke with a rep of Great Lakes (GL) He told me that GL will report within 30 days of the loan being picked up. He mentioned that GL will not backdate, so we shall see. I'm excited & nervous at the same time !!!!

 

PS - I got a random +17 increase on Transunion today. The alert did not give any info regarding what it was for & I cannot see if anything was removed or added. It was honestly probably a late payment that aged from my auto loan. 

Message 5 of 20
Anonymous
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Re: REHAB COMPLETE. LOAN PICKED UP

Do you mind sharing what your annual income is? I'm a little under $10,000 and student loan debt and was trying to get an average of what my payments would be after a rehab should I go that route. Thank you in advance.

Message 6 of 20
Anonymous
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Re: REHAB COMPLETE. LOAN PICKED UP

My annual income is about $27-29K .
When i started rehab, they estimated my payments to be $141/mo but i couldnt comfortably afford that at the time so they asked to see my tax return to lower the payment amount...... with that, over the phone they came up with $50/mo but I decided to be ballsy & negotiated it down to $5/mo.

Yeah, the $5/mo isnt helpful because of interest but it put me in a position to save & plan ahead to when i knew the new lender/servicer who picked the loan up would "increase substantially" .... i found out that my payments will go up to $87/month for 2 years & then it will increase again to like $140/mo. I plan to have the loan paid in full long before that point tho.
Message 7 of 20
Anonymous
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Re: REHAB COMPLETE. LOAN PICKED UP

I wonder if I could get my payments after rehab down to about $50 per month. With my exist bills I cannot afford much more than that. Or is it a take it or leave it deal?

Message 8 of 20
Anonymous
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Re: REHAB COMPLETE. LOAN PICKED UP

I'm sure they can be flexible. It really all comes down to your servicer too.

My new servicer is Great Lakes & they have several options for repayment as I know as with other loan servicers as well. They have an income based repayment schedule that would reduce the monthly costs for a period of time, but I just took what they offered me as it is reasonable for my current situation. They didn't ask to look at pay stubs or anything. I'm sure if it is income based or negotiated I think you would need to provide documents of your monthly bills & such. 

 

The one thing I can say is that whatever your payments in rehab are, consider your after rehab payments to be much more. That's one of the reasons I tried hard to get down to $5/month in rehab. If I would have took their $141/month deal while in rehab, my monthly payments would probably go over $200/month after rehab right now. Keep that in consideration.  ........ Starting July, I have to pay $87/month for 2 years & then it will go up again. 

Message 9 of 20
SCF
Valued Contributor

Re: REHAB COMPLETE. LOAN PICKED UP


@Anonymous wrote:

I wonder if I could get my payments after rehab down to about $50 per month. With my exist bills I cannot afford much more than that. Or is it a take it or leave it deal?


Once you rehab you'll be able to choose any of the payment plans available to all federal borrowers.  ED has a pretty handy https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action that you can use to plug in your specific situation (loan balances, interest rates, income and family size) and see what payment plans you're eligible for and how much they would be.  If you create an FSA ID, it can even import your information from the NSLDS and give you very accurate estimates.

 

Generally, PAYE or REPAYE will give you the lowest payment because it's based on 10% of your discretionary income, but look at the graduated repayment option too, because it might be lower than the income-driven plans for the first few years.

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