Student Loan Rehabilitation And The Effect On Tradelines

[awash242]

My loans are through Direct Loans, currently being rehabbed through Enterprse Recovery Systems, and my 9th payment coming up on March 15th. I called ERS and they told me that becuase Direct Loans is having problems with their systems, I will continue making payments to the collection agency (E.R.S.) until they get picked back up.

Is there any indication of when Direct Loans will have their act together to start picking loans back up?

[Lois5669]

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@Lois5669 wrote:

Update on mine - My rehab was completed back in May 2011. I filed disputes with all 3 CRAs on 2/10/12, EQ and EX have already deleted my bad TLs but I am still waiting on a decision from TU. Wonder why they are taking so long..?

Anyway, my EQ FICO went from 550 to 512 (during the dispute) to 561 now. Not sure of EX. TU was my lowest by far so I'm hoping they will delete and it will at least get me in the 500s.

Also, according to a CSR with Direct Loans, my loans are still owned by them/Dept of Edu. I asked if it was going to be transferred to one of the servicers like Mohela and she said they don't know until it happens..it is a random process of which ones go and which ones stay.

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Well, TU finalllly deleted. Not sure why they took so much longer to complete my dispute than EX and EQ, but all's well that ends well.

[Anonymous]

i was told today by dcs that my loans are set to complete rehab March 19th, and that everything is set in place and ready to go just waiting on Great Lakes to file it in their system.  I have called GLs about every two days and have been told once it completes they will update my TLs and this is gonna be big for me because Great Lakes is my oldest account (2004) and with that going to show being paid as agreed upon for that long i look for my Fico to jump to where i need to be for my mortgage loan.  I am currently sitting at 575 and have 3 accounts being disputed so hopefully they can get these updated quickly....

[Anonymous]

I "completed" my portion of the rehab process in January with CBE group. Was given the same line about the computer programming issues, & not being sure when the loans would be bought back. I have been calling both the ca, and student loan ombudsman (1-800-621-3115) weekly, I asked about the " borrower relief process" and was told that the tax offset would be removed, default removed & update cuuent payments to all three bureaus along with default being removed from caavrs, as we are looking to purchase a home shortly. I called the federal tax offset program tonight, and good news... Looks like I'll be getting my tax return for the first time in several years!! I then called the ombudsman #, and spoke to a car, and she stated that they are starting to see loans being picked up again. That's a better answer thn I've gotten before. I guess there is some light at the end of the tunnel. I'll keep checking credit reports to see when they have been reported. Good luck to all who have been waiting!

[awash242]

Does anyone have anymore information on this "Borrower Relief Process"? I can't come up with much doing google searches but I see a few people have mentioned it here.

[Anonymous]

So, I made my 9th Direct Loans rehab payment last Wednesday and called today to see if I could find out ANYTHING at all about the loan getting picked back up. I spoke to two representatives who both confirmed that rehabilitations are currently being processed. Finally! I have been wondering for months how long my loan would be in rehab purgatory. The default resolution group rep was able to tell me that my loan would be going back to Direct Loans and not to a servicing group. I'll keep checking the mailbox with crossed fingers and hoping for the best. I'll update as soon I see something.

[Anonymous]

Definatly good news! You are your loans being rehabbed through???

[Anonymous]

@happygilmores: My understanding is that the "rehabilitation" with Direct Loans is not complete until the loan has been picked up, in my case, it will be returning to DL as opposed to a servicer like Mohela. As I'm sure you know, the DOE system upgrade starting in 2011 caused the rehab processing to go on hold indefinitely. You are still able to make payments toward your rehabilitation, but there were no actual dates as to when they would actually process any rehabs.

Making all of your agreed payments is all fine and good, but until the rehab is completely processed, those late payments and defaults aren't going anywhere. The reps I spoke with did not indicate that my rehab was processing, just that they are up and running and that rehabs ARE being processed. I was hoping for something super fast- like a 30 day turn around from the time of my 9th rehab payment to the loan being picked back up.

She said it may actually turn out to be less than 30 days, but I won't be holding my breath. She did tell me that they will be sending me the details of the rehab in writing. Evidently, this will be a letter notifying me that the loans have been picked up by DL and I will need to contact the lender to make my payment arrangements going forward. If I'm not mistaken, it is at this point that DL will update my tradelines with the credit bureaus.

It is possible that there will be a lapse in reporting to the credit bureaus. If my current tradelines are deleted, then the loans may not show up on my reports until the original lender re-reports the loans. I'm guessing this lapse might be at least a month. This thread has been pretty helpful in trying to understand what the timeline looks like for getting all of this done. If they're right and they are back to processing our rehabs, it's going to go a lot "faster" than things have been moving up until this point. Hopefully this is helpful! It's way more than I knew back in July when I started. Good luck!

[Anonymous]

Benjamin81

Thats awesome things are moving so fast for you.  I have been calling DCS and Great Lakes every other day just keeping up with them...LOL I spoke with a lady this morning From Great Lakes and even though my SLs are not set to completly rehab until the 20th of March it shows in their system and she told me she was going to forward my account to a hire up then her to see if they will report my account out of default to CRA right away! I really hope this is true and they will be able to do this for me, I mean i made 24 (24th middle of feb.) payments when it was supposed to be only 9-10.  Def very glad things are actually moving along now though and i'm not getting tons of excuses like i had been!  Will keep everyone updated

[tburns]

Well my SL drama isn't over I guess. Next payment is on the 14th. Logged into Direct loans just now and have a 0 balance with transfered as status. No idea who my loan is with now and EX wasn't updated. EQ and TU have the loan twice, once closed once open, but only once for EX.

So now no idea what's going to happen. I did get a billing statement from Direct Loans the other day but it doesn't say anything new. Just a basic statement. I'm set up for quikpay so who knows.