Student Loan Rehabilitation And The Effect On Tradelines

[FicoTron]

Wow, a lot of new people have chimed in since I last visited this thread. This thread is coming up on its 1 year anniversary...good job everyone at keeping the info streaming. So, as far as my situation update...Mohela has taken my second payment and says they will report at the end of March. My TU randomly started reporting all 6 TLs in feb from DOE but EQ stopped and reported just the one closed account at about the same time, as usual EX hasn't changed.

[MissKay]

ECMC are completely erased from my credit report. The new lender, ACS has reported toTU, but not EQ. I have not seen much of a score change on TU. Looks like the change I did get is from paying down my cc and 1 new cc. If it's not reported by the end of the month, I will advise them. Good luck guys

[Anonymous]

I'm new to this so, here we go...To make a long story short, I completed the loan rehab with the orginal lender "Student Loan Corporation" (no Sallie Mae or Direct loans). It's the Dept of Education in S.C. I made my last payment early so, they cleared up the default the same month and the TL's stated "OPEN" (it's 7 mind you). This was Jan, yeah, this year. They report again in Feb, to "Pays as Agree" but, all the 120 days late so on, from 2008, are still there. I'm getting worried bc this is hendering me from a home purchase. I was really banking on those extra points. now my EQ is 550, TU 570 EX 577. All I need is a 620. I've paid all my creditors, got a secure credit card in Dec '11, smh, I'm not sure what to think and, the credit specialists some say it will go away some say the lates will stay....what should I do?? (I've tried disputing it last month)

[awash242]

Hi everyone.

I just wanted to share my experience with you all. I have been making payments towards my rehab since last July. I made my 9th payment today through the CA (Enterprise Recovery Systems). I called the DOE default resolution line minutes ago and spoke to a woman who was pretty helpful. I asked what the next steps were and she said to keep making my payments until it gets picked back up because rehabs have been being picked back up as of recently. She also was able to see that my 9th payment was received and she "decertified" or removed me from the tax offset list, and also let me know that my tradelines will all be updated with the default status removed. So the good news is that they ARE picking loans back up now, and even in the meantime, you can have your tradelines cleaned up. My loans are Direct Loans by the way.

--awash242

[Anonymous]

Great lakes deleted my TLs on all 3 of my reports which is good, but my TU is now reporting no score because of limited history with TU.  Also Great lakes is now telling me when they update and report my rehabbed loan it will show as a NEW TL instead of dating back to the bginning which sucks because it would have went back 7 years.  i don't understand because this entire time they said it will backdate to the beginning and now all of a sudden they are gonna report as a new date...Well i guess its good its getting corrected but now it will not help me as much as i thought it was going to since it will show current date...

[turts14]

I have recently completed my rehabilation program with Great Lakes Higher Education.  The account was purchased by sun trust right away and they have removed all of the previous negative listings on my credit report.  I am now showing one student loan payment with two payments posted.  I was under the impression they would give me 12 months payment history as well but not the case.  They cleaned them up within 60 day's of completion and where great to work with.  All in all they where reporting 15 negative accounts that are all now removed.

Now the bad news.  My loan was originally with Wells Fargo Education Financial Services then sent to GLHEC.  Wells fargo is still showing 5 accounts charged off on my credit report.  I called them and explained that I went through the rehabillation program but said that does not matter to them.  I am sending them out a good will letter today.  If anyone has other advice for me on this let me know. They will fall off in one year but I am not that patient and trying to buy a house.   

[FicoTron]

Well, once again the moment of truth is upon me. Mohela is due to finally report my loans on the last day of the month. If they do, my journey of rehab which started in 9/10 will finally be realized 19 months later. What a long time it's been, especially since I made my last rehab payment in June of last year and I'm still scrounging to get them to report it correctly. I can only hope to come back to report the good news come the first week of April. Good luck to everyone else and their situations...trust me, credit-wise, it is the best decision you can make, because of rehab I am now able to hack up my cap1 and HSBC cards and trade them out for Amex and Chase.

[Anonymous]

Alright folks, I finally got some good news today! I finished the last of my payments to qualify for rehab Feb 21st. I have not yet had my loan picked back up by Direct Loans, but did get them to delete the most of the existing tradelines. My Experian report is still showing one of the five original tradelines and it is listed as closed, but my EXP score jumped from 578 to 620 (42 points). I expect this will shoot up some more after the last tradeline is deleted. My Equifax report is not currently showing any of the previous five student loan tradelines and my score jumped from 635 to 719 (84 points). No word from TU yet, but they're always late to the party. Once the US Dept of Ed/Direct Loans re-reports my loans correctly, I anticipate some more increases, but this is way more than I was expecting a little over a month after making my last qualifying payment. My advice is to call your loan servicer several times a week with the excuse that you are following up on your requests. Hang in there!

[hateAshbury]

do rehabilitated loans erase the delinquencies leading up to the deafult on the borrower's credit report?

[turts14]

In my situation yes and no.  The orginal loan holder was Wells Fargo Education.  Five loans in total so five seperate trade lines.  I missed payment on all of them and the loan went to great lakes higher education,  with duplicates they were reporting 15 negative trade lines. 

when I finished the rehabilitation and the loan was purchased GLHEC completetly  removed all 15 of the accounts that where showing late and now it is reporting one positive trade line with three months reporting.

I am working with Wells Fargo to remove the five they are still reporting.  At first they said they could do nothing but reach out to someone in corporate and just received a letter stating that if I mailed confirmation that my rehab was complete they would make adjustments.  They didn't say what type so I am curious and shoudl have an answer back in a few weeks