Reply
Member
americanjunkie89
Posts: 7
Registered: ‎04-30-2013

Rehab Question!

Hello! I defaulted on four of my student loans. Three through Chase and one through Citibank. It has gone to a collection agency, but they are not reporting.

I've been reading about rehabbing student loan. How exactly does it work? Does it only apply for federal student loans?

Help! Thank you! I'm currently in a payment plan for two of my chase and Citibank.
Frequent Contributor
kjel
Posts: 362
Registered: ‎11-27-2012

Re: Rehab Question!

It only applies to federal loans.

 

This is a good overview of how the program works. http://www.studentloanborrowerassistance.org/default-and-delinquency/repayment-get-out-of-default/


Starting Score: TU: 549 | EQ: 549 | EX FAKO: 541
Current Score: TU: 641 | EQ: 680 | EX: 649
Goal Score: 700


New Contributor
ash4life
Posts: 52
Registered: ‎11-19-2012

Re: Rehab Question!

I had Citibank too. I defaulted with them. It got transfered to Sallie Maie. I defaulted with them then the Dept of Ed got it. I did the rehab. 9 on time monthly payments. After the 9th payment the default status should be wiped clean. Sallie Mae picked up my loan again. The NSLDS will show if the default status was taken out. 14 days after my 9th payment NSLDS showed I'm no longer in default. As far as the CRA's goes, I won't know until my credit is pulled again. According to the Dept of Ed, the default/collection status is supposed to be wiped clean. As far as past late payments, I have no clue what is supposed to happen. Many on here have said the past lates are supposed to be updated per the rehab law and other have said the lates stay on there like any other account. Again, I won't know that until my credit is pulled again. 

Hope that helps. 


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
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+