04-16-2013 06:46 PM
I've been reading through a lot of your student loan rehab stories and now I am beginning to worry. My loan is a consolidated Federal loan. I have no idea what is meant by Direct Loan, so I can't really follow the conversation.
The loan defaulted in 2010; I do have tons of "good" history for this loan when it belonged to its first lenders, however, that of course will come off very soon - I think at the end of this year, and then only the bad stuff from Chase and American Student Assistance will remain for awhile.
I've just made my 6th consecutive rehab payment to West Asset Management, so I am over the hump but am now getting worried that it will all be for nothing, either because the negative lines won't heal and only the "default" will come off leaving all of the 120+ days late stuff on there.
Anyone have experience with rehabbing a very large defaulted federal loan (mine is NOW $80K although that is due to massive amounts of collection fees)? What happened to your credit the following months after completion, and also what was the new lender like? I'm so upset at myself for now having to pay $80K for a loan that was originally $50K if you can believe that. For an undergrad!
If you have experience with ASA or West Asset Management, even better.
Gardening til 01/14
04-17-2013 09:02 AM
I think you're doing great - don't worry.
It's hard to say what will happen with your scores post-rehab, because a lot will depend on what the rest of your credit file looks like. In your case, you've been pretty focused on getting some good info reporting, so that proactive behavior will definitely pay off. You'll have perfect payment history on your SL's going back to 2010 at least, so that's positive. Lates that are that old are less damaging than lates that are "fresher".
Direct Loans refers to the Federal Direct Student Loan Program - the federal entity that administers Stafford loans. There were some structural changes to the setup of the federal student loan programs in 2010, so this might have happened after you were already finished with school. You might have originally had Stafford or FFEL loans back in the day.