Student Loan Rehab program

Anonymous · ‎05-05-2008

I have a defaulted student loan from a few years back that is about to be "rehabilitated." rehabilitation is a federal program for federally-backed student loans that are in default status. basically, if you pay for 9 months on time every month, with at least 20 days between payments, the company holding the loan (in my case, Edfund/California Student Aid) will delete the account from the credit bureaus completely and sell it to a commercial bank (in my case, Suntrust) where I'll be making payments. With all that negative history being vanquished next month, how high can I expect my FICO to go. right now I'm at 490 with relatively "new" credit history, making on time payments etc.

the student loan was for 1500 with numerous 30 day lates, 90 day lates, etc, and the company did not update while I was making the 9-month payment plan.

Anonymous · ‎05-05-2008

This is tough to detrimine- as not enough informmation to even guess.

It should go UP!!! Isn't that all that matters? Congrats on your rehab.

GBC wrote:
I have a defaulted student loan from a few years back that is about to be "rehabilitated." rehabilitation is a federal program for federally-backed student loans that are in default status. basically, if you pay for 9 months on time every month, with at least 20 days between payments, the company holding the loan (in my case, Edfund/California Student Aid) will delete the account from the credit bureaus completely and sell it to a commercial bank (in my case, Suntrust) where I'll be making payments. With all that negative history being vanquished next month, how high can I expect my FICO to go. right now I'm at 490 with relatively "new" credit history, making on time payments etc.

the student loan was for 1500 with numerous 30 day lates, 90 day lates, etc, and the company did not update while I was making the 9-month payment plan.

Anonymous · ‎05-06-2008

I completed this program several years ago. It was the best decision I ever made. (I had the money to pay the default in full, but I opted for the loan rehab program instead). It takes the "default" status off the loan like it never took place. My credit score went from the high 400s to the high 500s. I rolled that momentum into a secured card with Orchard and some other rebuilder cards and now have my credit scores in the 660-679 range a few years later. To answer your question, my jump was almost 100 points after the default was removed, but I assume it is different depending on each circumstance.

Anonymous · ‎05-07-2008

I recently am rehabbing a settled student loan to get the "settled stuff" off the report. However it is my oldest account. So I would lose history dating back to 1997. My next oldest account is from 2003. So I am not sure what it will do when it goes away.

That average age will drop by a bunch!

Anonymous · ‎05-09-2008

you know what? i just found out Edfund removed two of their account form my credit after completing the rehab But to my shock my score is the same. Why Why this sucks

Anonymous · ‎05-20-2008

Is it possible to "rehab" a student loan that has already been paid in full? How does one go about doing that? Thanks!

Anonymous · ‎05-20-2008

It isn't -

prettyplease wrote:

Is it possible to "rehab" a student loan that has already been paid in full? How does one go about doing that? Thanks!

Anonymous · ‎05-22-2008

I have a question about this program, my fiance has 17 late payments on her Sallie Mae loan, but has never been in default. Her last late pay was feb of 07. Is it possible to use this program to wipe those off of her credit report?

olivex · ‎05-22-2008

Just a quick question, So i would ask for the rehab program with the California Student Aid?

Also would anyone have any idea what a monthly payment would be on a 9K loan? Would just like to get an idea.

Thanks

Message Edited by olivex on 05-22-2008 08:22 PM

Anonymous · ‎05-22-2008

The rehab program does not wipe lates-

Drachen wrote:

I have a question about this program, my fiance has 17 late payments on her Sallie Mae loan, but has never been in default. Her last late pay was feb of 07. Is it possible to use this program to wipe those off of her credit report?