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Student Loan Rehab Completed! NEED ADVICE

Member

Student Loan Rehab Completed! NEED ADVICE

Alrighty sooo here's my story so far. I've spent the last 2 years getting my credit in order, paying down debt and got a few new credit cards over the last 3months. My scores range from 606 to 666 as of right now. Yesterday I paid my 9th and final payment on my student loan rehab. I called the National Student Loan people yesterday to confirm my last payment and "officially" my loans are considered out of default! YAY!! 

 

Now I'm waiting on a servicer to pick up my 1 consolidated loan of about $10,2K, set up a payment plan and get all my negative trade lines removed from my credit report. If anyone out there has any advice for me, I'd TOTALLY appreciate it! Do I just sit back and wait....or is there anything I should actively be doing to move this process along? HELP!!  =)  

Message 1 of 17
16 REPLIES
Regular Contributor

Re: Student Loan Rehab Completed! NEED ADVICE

I'm going to follow along with you as I am making my final default payment tomorrow!  Congrats to us!  I have about $45k in student loans, but from what I have seen so far, I will actually be able to have lower payments than what I have been paying in default.  Can't wait for default status to be removed and clean trade lines as I am hoping to get approved for a mortgage in the next few months.  

 

Are all of your loans federal?  From what I have read that makes a big difference on what the tradelines look like after rehab.  

FICO8 Scores as of 8/8/17: EQ-643 TU-644 EX-629
Current FICO8 Scores as of 12/7/17: EQ-675 TU-658 EX-652
Current Mortgage Scores: EQ-686 TU-677 EX-641
Goal: all FICO8s above 700
Message 2 of 17
Member

Re: Student Loan Rehab Completed! NEED ADVICE

Yay Congrats! Yes, my loans were federal. What have you heard about federal loan trade lines?

Message 3 of 17
Regular Contributor

Re: Student Loan Rehab Completed! NEED ADVICE

From what I have heard, granted these were on older threads, that federal loans all of the negatives get removed.  Things may have changed since, but I am hoping that this is still the case.  Some loan servicers seem to be more difficult than others with this and fight removing them though.  My reports actually list DOE and not my prior service, so I am hoping it is smooth sailing!

FICO8 Scores as of 8/8/17: EQ-643 TU-644 EX-629
Current FICO8 Scores as of 12/7/17: EQ-675 TU-658 EX-652
Current Mortgage Scores: EQ-686 TU-677 EX-641
Goal: all FICO8s above 700
Message 4 of 17
Established Contributor

Re: Student Loan Rehab Completed! NEED ADVICE

Welcome to the forum.  Congrats on getting your student loans under control, that is fantastic.

 

To provide you some additional details about the rehab program.  There is typically confusion about what happens after rehab is complete.  It is true that you receive a new trade line which will help your credit report.  Also the default status is removed.

 

A misconception is that all of the lates prior to default are removed, but they are not.  Those lates will remain, but good news is that as he lates age and are replaced by good payment history, it will cause them to hurt less and less over time.

 

Congrats again on getting through the loan rehab.  Keep those payments going and you will continue to see your scores increase.  Also, most servicers offer a 0.25 point decrease in your interest rate if you sign up for automatic payments.  Its a good way to save a little more money.


Starting Score: Eq: 662 Tu: 532 (03/02/2011) CH7BK 01/12/2009 Discharge
Current Score: Eq: 712 (02/03/2017) Tu: 717 (04/03/2013)
Goal Score: Eq: 760 Tu: 760

Wallet: PenFed Power Cash 25k | AMEX Blue Cash (AU) 49.5k | Cap One QSMC 26.5k | AMEX Platinum NPSL | LFCU Visa 10k
Message 5 of 17
Regular Contributor

Re: Student Loan Rehab Completed! NEED ADVICE

Here is a link to a relatively recent thread on completing the student loan process and what people experienced/did.  Hope it helps!

 

http://ficoforums.myfico.com/t5/Student-Loans/Finished-SL-Rehab-UPDATE/td-p/4746617/highlight/true/p...

FICO8 Scores as of 8/8/17: EQ-643 TU-644 EX-629
Current FICO8 Scores as of 12/7/17: EQ-675 TU-658 EX-652
Current Mortgage Scores: EQ-686 TU-677 EX-641
Goal: all FICO8s above 700
Message 6 of 17
Member

Re: Student Loan Rehab Completed! NEED ADVICE

UPDATE!! 

I went ahead and disputed 2 of my original SL tradelines on my TU report. These we with Sallie Mae. TU deleted the two lines in the same day I filed the dispute!! I'm not sure if this will have any affect on my score, I hope I get some kind of boost, but I'll keep updating as things go along =). I'm still waiting to hear back from Equifax on my dispute results. 

Message 7 of 17
Regular Contributor

Re: Student Loan Rehab Completed! NEED ADVICE

Do you know if your loans have been bought yet?  I was going to wait until I know for sure that they have been bought before I do anything.  Techinically, the rehab isn't considered complete until they have been bought, so I didn't want that to ruin things for me!

FICO8 Scores as of 8/8/17: EQ-643 TU-644 EX-629
Current FICO8 Scores as of 12/7/17: EQ-675 TU-658 EX-652
Current Mortgage Scores: EQ-686 TU-677 EX-641
Goal: all FICO8s above 700
Message 8 of 17
Regular Contributor

Re: Student Loan Rehab Completed! NEED ADVICE

Looks like my loans may be with Navient.  Student Aid website still shows them as being in default, but I can make a payment to DOE/Navient.  Hopefully this means the default status will be removed soon so that I can see what happens with my score!

FICO8 Scores as of 8/8/17: EQ-643 TU-644 EX-629
Current FICO8 Scores as of 12/7/17: EQ-675 TU-658 EX-652
Current Mortgage Scores: EQ-686 TU-677 EX-641
Goal: all FICO8s above 700
Message 9 of 17
Member

Re: Student Loan Rehab Completed! NEED ADVICE

Yes my student loans have been picked up =) Still waiting on it to reflect on my all of my reports though. 

Message 10 of 17