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Student Loan Rehabbed

Student Loan Rehabbed

I got my student loan the went into default rehabbed, and it is now out of default.  The original lender is still posting as a "unrated or bankruptcy" with the full amount of the loan still owed.  I have payed this down to under 500 dollars.  My account was transferred to NYSHESC where I rehabbed it, and now it is current.  Can ACS still report the original amount?  I though that when you rehabbed a loan they were required to take it out of default on your CR.
 
Message 1 of 7
6 REPLIES
Moderator Emeritus

Re: Student Loan Rehabbed

Yes- they are required to remove the default entry
 
"unrated or bankruptcy" is not a negative status- I would be more concerned if there are lates and the balance-
 
 
Message 2 of 7

Re: Student Loan Rehabbed

It is showing 10 times 90 days late, and 1 time 60 days late.  Is that hurting my score.  Equifax does not report it, Experian reports the late payment and no balance, and Transunion reports 2 times 90 days late, 1 time 60, and a balance.  Is this hurting my credit score?  I disputed it before, and it came back verified.  They don't have the account anymore, and have no information on me.
Message 3 of 7

Re: Student Loan Rehabbed

They refuse to delete account negatives even though it has been rehabilitated.  Is this illegal.  They say they are still required to show a delinquent status.
Message 4 of 7
Senior Contributor

Re: Student Loan Rehabbed

AFAIK, they can report the lates but have to specify that the account is being "paid as agreed" and no longer in default.

Rehabbing a loan doesn't make it magically appear to be perfect, AFAIK, just no longer a default (which is probably equivalent to a foreclosure in terms of ugliness).

Forgot to ask: Are you SURE it's been rehabbed completely? The criteria for rehabbing depends on the loan, of course .. but it's usually a minimum of being on the program for 9 months-a year. Becoming "current" isn't the main criterion.

I don't know how that would work, though ... if becoming current on the loan only took, say, 6 months, would the extra 3 months still be necessary??? Anyone know???

Message Edited by Wonderin on 06-16-2008 01:04 PM

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Message 5 of 7

Re: Student Loan Rehabbed

This loan has been rehabbed ( for 9 months) and current for 5 months now.  I called them back again, and they still refuse to report the loan as current, saying that the balance was owed to them, so they cannot delete the owed balance.
Message 6 of 7
Frequent Contributor

Re: Student Loan Rehabbed

When you complete a rehab, only the guarantor is required by law to mark the account as paid as agreed.  The OC or original lenders tradeline will remain the same.  Time will age it out.
Ex-Financial Aid Officer

Ex-Student Loan Collector
Message 7 of 7