So I thought it would be useful to share my experience with my student loans and my rehab experience. I have a total of 4 student loans only one of which ever defaulted and went into rehab. The other 3 tradelines have numberous lates, even a few 120 day lates but never actually defaulted. All 4 loans have been paid on time for the past 2 years.
The loan that was in default was originally for $7500 but by the time I entered the rehab program fees and penalties had brought the balance up to $8900. I entered the rehab program with GC services in October of 2011. Nine months later in June of 2012 my loan was immediately picked up and is now serviced by Nelnet. During my rehab I was paying roughly $150 a month and had made some progress at reducing the balance. When my loan was resold, GC services tacked on a 18% collection fee that brouught my loan balance back to almost $9000. Clearly this sucks, but whatever at least my credit score would improve...or so I thought. Since rehab was complete only the default mark was removed on the old tradeline. All the lates have remained despite numerous good will attempts. So despite rehab and over 2 years of on time payments I still have 4 student loan tradelines with more lates than I can count. I truthfully didn't see much of a score boost. My score is still in the mid to low 600s and will likely stay there until the lates age off 5 years from now.
Finally I am an over a year post rehab and my loan balance is finally gettting back down to what it was at the end of rehab. Financially I would have been better off to just consolidate it out of default instead of doing the rehab process. I essentially paid over $2000 that got added back onto my loan as a collection fee at the end of rehab.
Chase CSR 22,000 | Chase Freedom Unlimited 13,000 | Chase CSP 10,000| USAA Cash Back $7,000 | AA Silver Aviator Card $10,000 | AMEX Everyday $9,000 | Chase Freedom $3,000 | Capital One Cash Rewards $4,000 | Discover IT $4500 | Nordstrom Store Card $2000
