Student Loan Rehabilitation And The Effect On Tradelines

[antjones21]

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@bglynn07 wrote:

Just wanted to throw an update on here. I was working with Progressive Financial i made my ninth and final payment to the on may 28th. I received a letter in the mail from the department of education telling me to send my monthly payment to their Atlanta office. 4 days later i was sent a letter from progressive reminding me of my monthly payment. that was around june 6th. The payment is due on the 15th. Yesterday afternoon i called the department of education spoke to a reprensentive and was told that my loan was now with fed loan servicing, and i was given their phone number. She told me that she could fax or mail me a letter to give to the credit reporting agencies saying to update the accounts to paid up to date and no late payments. I chose fax and I am expecting the letter tomorrow at work. I then called back to find out who the payment was going to and a guy said they just delete the accounts altogether. I think iwould perfer to keep the accounts paid with no lates but we will see what actually happens.

So i then called fed loans. they were nice enough and said my loans were in the tranfer process the guy on the phone then looked it up and said all the information will be available tomorrow and a letter and acount information will be sent out tomorrow and to mail the check to them i will be all set. Pretty good news I think

So for any questions i will do a short after action report

 it took about 15 days to be picked and placed into a system. The Progressive (debt collector) said it was best to get the last payment in at the end of the month the companies who pick up your loans do so at the beginning of each month.

The Department of education is the ones you need to speak with about getting the tradelines deleted. But the woman on the phone said she will fax me a a letter and can send it to the credit bureaus or i can. I think I will ask her to and then do it myself as well. On Thursday I am going to spend some time talking to experian equifax and transunion and see what is the best and fastest route is to update the trade lines.

The last bullet point is the new company reporting. I am hoping to get this squared away buy the middle of July that could be high hopes but I just need a decent number boost. The new company said they only report new information on the loan, so if I can get the department of education to report the loan being open since 1999 and then being paid up to date and the new loan people to report paid as agreed I will consider myself extremely lucky.

If there are any questions or any information someone needs let me know I know I was and still am dying for imformation a response and to move forward

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@bglynn07 any updates? I'm in the same situation as you. My rehab was completed through Progressive Financial Services  (Dept of Ed collections) on 6/25/13 and on 7/15/13 FedLoan picked up my loans. My first payment to FedLoan is due on 8/15/13. I'm trying to buy a house ASAP and my current credit score is not good enough to get preapproved. My Experian Fico score was 605 on 7/18/13, I need it to be at least 640 before I can be pre-approved. Any idea on how much my score will improve after my tradelines are updated with the Bureaus? Is there anything I can do at this point or do I just have to wait?

[Bill2265]

Hello. Really glad I found this forum! It has been very helpful. Like many people here I have a ton of old student loan trade lines I'm trying to get removed. Luckily, the Dept of Education removed 4 trade lines after rehab just like they said. The problem is that it's been over a year of rehab payments and STILL no lender has picked up my loans. I call and bug them every month too! That's the good news...unfortunately I still have two other tradelines reporting from Florida Dept of Ed and even though I've paid 12 rehab payments they won't remove or stop reporting negative. I called and the lady and she said until a new lender picks up the loan it is NOT rehabbed yet. So I'm waiting in limbo right now for new lenders to pick up my loans. I did get a 35pt bump when they removed 4 negs so there is hope!

[Legions36]

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@Bill2265 wrote:
Hello. Really glad I found this forum! It has been very helpful. Like many people here I have a ton of old student loan trade lines I'm trying to get removed. Luckily, the Dept of Education removed 4 trade lines after rehab just like they said. The problem is that it's been over a year of rehab payments and STILL no lender has picked up my loans. I call and bug them every month too! That's the good news...unfortunately I still have two other tradelines reporting from Florida Dept of Ed and even though I've paid 12 rehab payments they won't remove or stop reporting negative. I called and the lady and she said until a new lender picks up the loan it is NOT rehabbed yet. So I'm waiting in limbo right now for new lenders to pick up my loans. I did get a 35pt bump when they removed 4 negs so there is hope!

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Hi, i just wanted to tell u that i was in the same situation as u with a Florida Rehab recently and let me tell u i couldn't get the right info i was looking for during this long process. It took me a good 12 payments to finally get picked up a few weeks ago from some lender in Georgia. I was also confused at the time and did call Florida Dept of Ed many times trying to get answers and also Allied which was the collection company during my rehab. From all the research i did I found that Florida right now is just having some kind of issues which makes this process longer than it should.

Well I think that about sums up anything and just be patient and not worry about it as it will evetually get done and u will just out of nowhere recieve a letter in the mail from your new lender. I hope this makes u feel better.

I can't tell u yet about point jumps because I have to wait to get the negs deleted and my first new payment is in September.

[Bill2265]

Legions36 - Thanks for your info! I'm glad to hear that the "new lender" does exist. lol! We should kept trading new info we seem to be in the same boat. I'm really curious to see what happens to the all these tradelines. What have they been telling you about removing the tradelines? I have 5 that say Dept of Ed. The wierd thing is 4 of them total the 5th one. Almost like they are reporting the same loans twice. Then, I have two others that say "OFSA" and they are still reporting a past due balance and 120 days past due. They lady did tell me that once all them are picked up that they would remove them, but I'm on my 13th payment and still waiting. My FICO is 629 right now, and I"ve read great things from a poster on here named FICOTRON and I'm hoping for similiar results.

Keep me posted on what happens with yours Legions36.

Thanks

[Legions36]

Looks like we have the same tradelines on our report. I have 2 tradelines for Nelnet and 2 for OSFA in my negative fields on my report, the 2 for OSFA are the defaults the 2 for Nelnet looks like it just has a late or something. U have a few things that could happen here, 1 would be all the OSFA and the Nelnets get taken off your report and turn to positive tradelines which i have read has happened to a few people with Nelnet. 2- which this seems to be the "legal" term for a rehab, the 2 negs from OSFA will get taken off and put as + tradeline when the lender picks it up but the Nelnet will stay on with the lates but shows a zero balance on it. 

From what they say it doesn't really matter if it stays on and doesn't really affect your score badly if it stays there. But I really think we have to wait until we make the 1st payment to the new lender to really see what happens because we could get lucky and get all the negs to turn into positive tradelines, and from what I read about Nelnet and peoples different experiences with them is they are very very easy to work with. But what i did a few days ago is i disputed all the negs with all 3 bureau's to try and speed this process, since my new lender is picking it up. 

Worst case senario for me is if Nelnet keeps it on my report it is set to fall off in Mar14, which isn't to bad. U chould check your report to see when this is set to fall off, the standard is 7 years. All i know is i have read people saying 50-100 point increases when all is said and done with this rehab.

[Bill2265]

Yeah I did the same thing you did about a month ago and disputed all nine negs on my report.(all student loans) I disputed the account info was wrong and commented that I was told all negative info would be removed after rehab (even though I wasn't technically rehabbed yet) last week they all came back verified. But, they did update all of them to paid as agreed with a zero balance. Although all the lates stayed on there. I called Direct loans about this and she did say that when it's picked up they will remove it completely so well see I guess.

Oh and they did remove all collection notations as well and they all say account paid/ transferred. So I guess they all the tradelines are just waiting for the new lender now..

[Bill2265]

Now I just have two collections tradelines from DCS reporting a past due balance. They won't remove these until a new lender picks them up. Strange thing is Dept of Ed removed there's after my 9 th payment with just a phone call. I guess collections agency's don't wanna play nice

[Bill2265]

*their's

[Legions36]

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@Bill2265 wrote:
Yeah I did the same thing you did about a month ago and disputed all nine negs on my report.(all student loans) I disputed the account info was wrong and commented that I was told all negative info would be removed after rehab (even though I wasn't technically rehabbed yet) last week they all came back verified. But, they did update all of them to paid as agreed with a zero balance. Although all the lates stayed on there. I called Direct loans about this and she did say that when it's picked up they will remove it completely so well see I guess.

Oh and they did remove all collection notations as well and they all say account paid/ transferred. So I guess they all the tradelines are just waiting for the new lender now..

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From what I read that if u have Direct Loans as a lender they remove all the negs, collections, defaults, and lates so your in good shape. Everyone says good things about them. Hopefully u get the same treatment.

[Viaggiatore]

I know I just need to be patient with this process, but it's killing me!  My Equifax has gone from 495 last August to 632 today, but I made my 9th payment to rehab my student loans in May and I still haven't heard anything back.  So I've just got that $250K in student loans sitting there....

Can't wait to make some progress on this, but even while I'm waiting is a good feeling to know that I've made my last 12 payments without incident.