Rehab Grad Questions

Anonymous · ‎11-09-2015

I have 6 student loans, all were in default. I filed for bankruptcy in 2012 but it was dismissed a short time later due to lack of dept. I ignored my default status some more until around this time last year when my wife and I decided to try and buy a house. Surprise! So I went it to the rehab and completed on 10/12. A week or so later I learned my loans were sold to FEDLoan. My scores have already gone up a little, however on TU the lates and everything are still showing. The status shows "Transferred". On Experian it shows 6 loans "Transfered" and then the same 6 loans as "Collection". So a couple questions here. First, is transferred status good? Will they fall off? Secondly, do I need to make a few payments to FEDloan before this reflects correctly? Since my scores increased I am in the range for a couple mortgage programs but if there is still some more corrections to come then I obviously want to wait. Any help appreciated.

Anonymous · ‎11-11-2015

FRon my personal experience you should dispute all collections immediately since rehab is done they cannot be verified and will be removed. that will give you your biggest score increase. As for the old time lines and lates they may take a while. You can dispute for inaccurate information but it may come back verified until they update their system..the new time lines will also post within a few weeks with the original date. Hope this helps!

Anonymous · ‎12-01-2015

@Anonymous wrote:
I have 6 student loans, all were in default. I filed for bankruptcy in 2012 but it was dismissed a short time later due to lack of dept. I ignored my default status some more until around this time last year when my wife and I decided to try and buy a house. Surprise! So I went it to the rehab and completed on 10/12. A week or so later I learned my loans were sold to FEDLoan. My scores have already gone up a little, however on TU the lates and everything are still showing. The status shows "Transferred". On Experian it shows 6 loans "Transfered" and then the same 6 loans as "Collection". So a couple questions here. First, is transferred status good? Will they fall off? Secondly, do I need to make a few payments to FEDloan before this reflects correctly? Since my scores increased I am in the range for a couple mortgage programs but if there is still some more corrections to come then I obviously want to wait. Any help appreciated.

Late to the party, but my original post here might help you. Your situation seems quite similar to mine. And my loans also went to FedLoan. My scores went up about 40 points across the board when all the dust was settled after 3 months of on time payments to FedLoan following rehab graduation. There was NO NEED to dispute anything, (although, like you that was my knee-jerk reaction. Glad I was lazy...this time...and didn't.

http://ficoforums.myfico.com/t5/Student-Loans/Woot-Defaulted-Student-Loans-DELETED-After-Rehab/m-p/4325492#M19097