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Established Member
upwithfico
Posts: 47
Registered: ‎04-13-2013
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Starting to Worry - Experience with ASA and West Asset Management?

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.



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Established Contributor
InvincibleSummer3
Posts: 640
Registered: ‎11-20-2012
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Re: Starting to Worry - Experience with ASA and West Asset Management?

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.

New Member
Alex2004
Posts: 8
Registered: ‎03-03-2014
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Re: Starting to Worry - Experience with ASA and West Asset Management?

I have a loan in default with ASA and West Asset Management. They're being very difficult with helping me set up a rehabilitation payment I can afford. I'd love to hear your experience with them in getting into rehab and how the payments worked...

 

 

Valued Contributor
Involver
Posts: 1,391
Registered: ‎07-16-2013
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Re: Starting to Worry - Experience with ASA and West Asset Management?

I am currently in the midst of rehabbing my student loan through West Asset Management via ASA and have had absolutely no problems.  I'm 1 payment away from completing rehab and hope to soon be picked up by a new lender.  The original accounts have all fallen off my reports due to age so for the time being they aren't even dinging my credit but I look forward to having positive reporting TLs that are over 10 years old.

 

The amount I was in default was roughly $14,000.  My monthly payments to West to get through rehab have been $130 a month earning roughly $50k per year.  

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Regular Contributor
scvbd99
Posts: 212
Registered: ‎02-22-2013
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Re: Starting to Worry - Experience with ASA and West Asset Management?


upwithfico wrote:

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.


I have experience.  Mine were around 80K too, and most were serviced by ECMC.  

 

The negative reporting that comes off and stays on varies widely by the current servicer, the previous servicers, and the orginal creditor.  The only thing they all have to get rid of after you rehab is any default/collection notations.  Removing any other accurately reported late payment history is completely at their discretion. 

 

Some people have luck by sending goodwill letters after completing rehab, asking that other negative payment history (30, 60, 90, 120+) be removed.  YMMV.  

 

Good luck!

 

 

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Regular Contributor
scvbd99
Posts: 212
Registered: ‎02-22-2013
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Re: Starting to Worry - Experience with ASA and West Asset Management?


Alex2004 wrote:

I have a loan in default with ASA and West Asset Management. They're being very difficult with helping me set up a rehabilitation payment I can afford. I'd love to hear your experience with them in getting into rehab and how the payments worked...

 

 


If they're federal student loans that you have never defaulted on before, they MUST allow you to do rehabilitation when you ask.  

 

Do not waste time listening to them try to get you to pay anything else.  

 

Negotiate your fair and reasonable rate for the 9 months, and ask them to send you the contract. They have 15 days to get it to you, or they are in violation of federal law.  

 

If they are not conducive to your request, hang up, and contact the federal ombudsman at this link.  Fill it out accurately, explaining that they aren't setting up rehab for you when you ask for it.  The ombudsman will usually get back to you BY PHONE within a couple of business days.  

 

https://studentaid.ed.gov/repay-loans/disputes/prepare/contact-ombudsman

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Valued Member
klondike
Posts: 111
Registered: ‎09-05-2013
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Re: Starting to Worry - Experience with ASA and West Asset Management?

I went through the same thing, don't feel so bad as there is nothing you can do now to change it :smileyhappy:

 

My original loans were 39k and I could have easily made my payments of 239.00, but I got stupid and let it default and I make 123k. I just completed rehab and made my first payment to ACS who bought the loans after rehab. My total now is 63k including interest, penalties etc.

 

If I could go back in time, obviously, I would have made the payments, but the big thing is now my credit will be significantly improved and I will be closing on my house around the end of April. Chock it up to being human and learn from your mistakes. I'm 48 now and I still make them :smileyhappy:


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Valued Member
klondike
Posts: 111
Registered: ‎09-05-2013
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Re: Starting to Worry - Experience with ASA and West Asset Management?

Ok, so all the bureaus have now updated.

 

Equifax deleted all of the old negative trade lines and added 1 new one that shows current, pays as agreed. My score went from 623 to 649.

 

Experian deleted all of the old negative trade lines and added 1 new one that shows current, pays as agreed. My score went from 653 to 675.

 

Transunion deleted all of the old negative trade lines and added 1 new one that shows current, pays as agreed My score went from 565 to 685.

 

Equifax had always been my highest score, so I guess that took the smallest jump, while Transunion was my worst and took the largest. The new scores are based on a report my LO just pulled and match exactly the Equifax score pulled from here.

 

 

Keep your fingers crossed for me.

 

Michael.


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