Rehab Student Loans

[Anonymous]

Hi All

I will keep it short and sweet. I am currently in loan rehab and my question is why aren't my credit reports showing that  I am making the monthly payments. I am recorded as late for 08/09/09, which continues to put me at 120 days late  I understand that all the late will come off after the 9 mos program has ended/reasign. Thanks in advance for clarity on this.

[Anonymous]

I just entereted into the Student Loan rehab for the 2nd time today. I have to make 12 payments without being late on mine. I believe my balance on my student loans is 3300, so its not like its  a huge amount, but for me its big enough. I'm wanting to buy some property next year and I realize I can't do that where my current credit score is. I've finally decided to be mature and take responsiblity for my lack of responsiblity. My goal is to just pay off the stupid loan on the 12th month. That way I can have it over & done with.

[Anonymous]

Hi all,

I am also part of a rehab program for a student loan. I made one lump sum payment, and now my payments are $50.00 monthly. I was informed if I made nine consecutive payments without being late the loan would return to the originator and then report as no longer being in default. After the nine payments I have an option then to continue to make the payments if the original lender approves it or ask for a deferment/forbearance. What I need someone to help me understand is why the monthly payments are not reporting now...and once the student loan is back in good standards will this really help your scores?

[Anonymous]

you need to come out of rehab before your payments will actually start showing as on time.  While in collections, the CA doesn't report to your credit that you are making payments on time.  Once the rehab is done, all the lates will be removed.  Just stick with the program.

[Anonymous]

Under the rehab program your loans are still in Default until they are purchased by another lender.  The issue is that there are very few Lenders right now and the Lenders that are buying loans have very limited funds.  So until Lenders emerge to pick up your loans you need to continue to make your payments on your account. If you stop making payments you loose your eligibility.