Student Loan Rehab??

[OklahomaHelp]

Hi! I just stumbled upon this forum and thought that I would ask a few questions. I currently have an open student loan with OSLA (Oklahoma Student Loan Authority). My loans were in deferment when I got out of college and my mail was going to my grandparent's house. I didn't realize that the deferment was over (and no one tried to call me) and I just went on about life. It wasn't until I checked my credit report that I discovered the problem. I realize that I should have been more responsible and this is COMPLETELY my fault. I immediately called them and set up a payment plan. Three years later (never missing a payment), I have asked for a removal and I was told the late information on my report will stay on my report. This is the only bad thing on my credit report and they broke my loan up into two different amounts, so it reports twice (as 150 day lates). I have read about rehab programs. Would this work for me? Is there anything else I can do. Thank you for your help!

[Sock]

Hello, and welcome to the board!

My understanding is that in order to rehab a loan, you must not have been paying on it... Since you found your error and did the good honest thing and started paying it back, I am going to assume that you no longer qualify.

The Credit Score gods have decided to punish you for being responsible.

However, if there is one thing I have learned, it's to ASK. You never know what new help/program might come out. People are finding out stuff and posting it in the forums here every day.

In the meantime, we're all here to help you figure out how to increase your score in other ways.

[OklahomaHelp]

Sock, 

That's kind of what I was afraid of! I will write another GW letter and keep trying. Guess there are really no other options. Thank you for taking the time to respond to my post! 

[scvbd99]

The only way to get any creditor for any type of loan or credit line to get rid of accurately-reported late payment history is to beg.  

It's good that you didn't fall into default.  Keep that in mind.  The more time that goes by, the less the lates will hurt your credit score (much less after 3 years, in my experience), and after 7 years, they'll start dropping off. In the mean time, the best thing you can do is send goodwill requests to delete the late payments...send them to the executive board if you can.  You're at their mercy, though, so remember to be polite, explain how it's your mistake, and how wonderful their customer service is.  

Student loan rehabilation is only for defaulted loans, and even after completing rehab, there's no guarantee the late payment history will be deleted from every tradeline.  Rehab only requires creditors to remove the collection agency/default status and comments from the tradeline.  

[OklahomaHelp]

Thanks for your reply! I sent a long letter yesterday evening. I hope I make some headway with this. Planning for the worst, hoping for the best.  I guess I'll just wait four more years otherwise. 

Oh! I did think of one more question. I was told that if you pay it off, you can write a restrictive endorsement on the payoff check? You guys know anything about this? 

Thanks again!

[SCF]

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@OklahomaHelp wrote:

Thanks for your reply! I sent a long letter yesterday evening. I hope I make some headway with this. Planning for the worst, hoping for the best.  I guess I'll just wait four more years otherwise. 

Oh! I did think of one more question. I was told that if you pay it off, you can write a restrictive endorsement on the payoff check? You guys know anything about this? 

Thanks again!

---

What would you be trying to accomplish with the restrictive endorsement?

[OklahomaHelp]

This guy that works for a credit repair company told me to put this under the endorsement (his words): 

RESTRICTIVE ENDORSEMENT:

ENDORSEMENT AND CLEARANCE OF

THIS CHECK PAYMENT SETTLES

ALL CLAIMS BY CREDITOR AGAINST

IN FULL & CREDITOR FURTHER AGREES

TO DELETE ALL DEROGATORY CREDIT

INFORMATION REPORTED TO ALL

CREDIT REPORTING AGENCIES IN

FULL SATISFACTION OF ANY AND

ALL DEBT OWED TO CREDITOR.

I have no clue if it would actually work. I owe about 4500, so if GW letter doesn't work, I may pay it off and try this? Anybody know anything about this? Thanks!

[scvbd99]

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@OklahomaHelp wrote:

This guy that works for a credit repair company told me to put this under the endorsement (his words): 

RESTRICTIVE ENDORSEMENT:

ENDORSEMENT AND CLEARANCE OF

THIS CHECK PAYMENT SETTLES

ALL CLAIMS BY CREDITOR AGAINST

IN FULL & CREDITOR FURTHER AGREES

TO DELETE ALL DEROGATORY CREDIT

INFORMATION REPORTED TO ALL

CREDIT REPORTING AGENCIES IN

FULL SATISFACTION OF ANY AND

ALL DEBT OWED TO CREDITOR.

I have no clue if it would actually work. I owe about 4500, so if GW letter doesn't work, I may pay it off and try this? Anybody know anything about this? Thanks!

---

Once again, if they're reporting things accurately, you're at their mercy.

If their lawyers are stupid enough to sign it with that restrictive endorsement, then good for you, I guess.  I'm betting they're not that stupid, and trying to put that in will make them 100% unwilling to adjust anything.  

[OklahomaHelp]

Kind of what I was afraid of. Ok, thanks for your help! I appreciate it!