I made my 9th payment December 20th and am waiting for a funding date so I can start seeing some of the benefit from the program. My guarantor was Sallie Mae with USA Funds showing for the loans. GC Services was handling the rehab process on this and originally said the funding date would be the 11th and now the 17th. Anybody else in roughly the same time frame as me experiencing something similar?
Starting Score: 12/19/12 - USAA EXP 564 EQU 564 TU 568 MyFico 612
Keep us posted. I am making my 8th payment today and my 9th payment early (on February 1st - the earliest they will except the 9th payment).
I am hoping by making it early my loan will get picked up before I have to make a 10th payment.
Thanks for the update with your progress. I will keep mine updated on here as well. I was hoping I would get picked up before the 10th payment, but I doubt it is going to happen in time at this point.
What will happen is that your current loan accounts will be closed (note of default removed and account balance brought to $0). The new lender will open up a fresh student loan account that will appear on your credit report with perfect payment history dating back to the same initial payment start date of the original defaulted loans. The issue that most have is getting those lates removed from the defaulted accounts. I just posted today about how my Good will letter to have them removed by Nelnet was denied. Its worth a try, however those missed payments of yours (and mine) are accurate so they dont have to remove them. You do have a good shot if the payments were missed due to being shipped out by the military or something along those lines. They have to remove the "default" from those old accounts, but bot the missed payments. It helps to just look at the situation and feel lucky that we both had a second chance and have our loan rights restored (ability to receive new loans and deferment etc...) and have the default removed. That default destroys your credit score. Good luck to you!
I just spoke to the rehab people again and they told me that in my case, the default will be cleared and the two TLs will be deleted and replaced with positive ones. He backed it up by saying that he will send a letter to that effect as well. I am not sure what makes each of these scenarios different for everybody.
I guess there is mix of factors such as luck, persuasive skills in the good will letter, whether someone has a direct staff email / name, or which company is being dealt with.
Well, they said it would be funded on the 17th and I should receive mail letting me know who picked it up before then. As it happened, the loan was funded on the 18th before my 10th payment would have been deducted, which I am happy about, but I haven't received any mail yet about it.
I have been hacking away at clearing up old collection accounts and other baddies off my report, so hopefully this will delete off about the same time as some other items so I get a dramatic bounce.
Once I get the letter and follow up, the rep said it is running about 2 weeks to see the default cleared and the new tradelines. Hoping this turns out to be the whole cleansing of the TLs some people have picked up. Fingers crossed!
Another interesting thing about this. I got my student loan interest statement for my taxes last night. I was paying $250 a month on the rehab payment and apparently that whole thing went to interest. A hefty extra deduction I wasn't counting on.