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09-09-2013 02:07 PM
If you read here: http://studentaid.ed.gov/repay-loans/default/get-out it looks like the collection costs can be added to your principal balance, but I don't think that is always the case. It probably varies from CA to CA, I would discuss it with the CA that you are working with.
09-09-2013 02:09 PM
I have Direct Loans, and from what I have read here, it looks like the collections costs are waived, but wanted to get feedback from others who are with Direct Loans.
09-09-2013 10:21 PM - edited 09-09-2013 11:02 PM
I made my 9th payment on May 25th, and finally got a letter today dated 9/4/13 that my loans have been picked up by Great Lakes.
So, it'll be nice to see what happens when we get this 250K reporting positively and 17 negative tradelines cleaned up!
09-10-2013 11:44 AM
I would love to see what your scores go up to, so please reply back.
To anyone else, I would love to see score increases if you have Direct Loans and went through rehab. I know that all of the lates and collection tag will be removed and it will report OK back to original default date, but I am very interested to see how that affects peoples scores.
I am currently trying to get my first house and make plenty of cash and have low debt ratio, but my median score is only 585 which puts me below the 600 minimum for VA. My paperwork will go to the underwriters by the end of this week which includes supporting statements on the student loans. I recently lowered my Util to 5% on my one card when it was at 40% and got rid of 2 smaller collections. I hope this will raise me to 600 and underwriting will accept the letter from ASA as good enough to pre approve me.
If not, I guess I will have to wait until March or so as my final payment is in Feb 2014 for rehab.
09-12-2013 02:49 PM
I just recieved a letter from my agency rehabbing my Direct Student Loans. ACT (Account Control Technology) is the CA. The letter states:
-Any collection cost fees remaining on your account will be removed
-Any negative comments on your credit report relating to these debts will be removed
-Any block to your eligibility for deferments or forbearances will be removed
-Any certification for Federal offsets of income tax or Social Security payments will be stopped.
-Any pending or active wage garnishment action will be stopped.
While this is specific to my collection agency, when I spoke with my rep he did say that removal of negative comments (lates, ect) on rehabbed Federal loans is the norm.
I hope this helps anyone who is curious/inquring.
P.S. This thread was my first read on myFICO and got me hooked
09-17-2013 08:34 PM - edited 09-17-2013 08:46 PM
This thread definitely gives me hope. Will post my story here soon. I'm presently in rehab with Windham and Gc services
09-18-2013 04:09 AM
Previous poster here posting on my actual username.
I have a question. I've been rehabbing my student loan and my husbands for the past couple months. For me I've been paying 20 dollars a month to Windham Professionals doing their rehab program. I owe around 6,000 in federal student loans taken out for community college. My husband owes 15,000 in federal loans. We've been paying 160 a month to GC Services rehab program.
My question is in regards to payments. We make them all every month. However we did have to call twice to tell them if they could charge our card a day or two later just to make sure funds were available. They were always able to do it and payments were made. I am wondering if this will hurt his chances at completing the rehab. I spoke with a member of GC and they say he's in good standing. September marks the 7th payment, so November is when the process for being picked up by a lender begins for both myself and my husband. If all goes well our credit will improve dramatically as these accounts are years old ( 2001 ) and 10 years of good standing credit will look nice on our report.
Did anyone have to delay a payment a day or so with permission and still successfully rehabbed?
09-21-2013 12:28 PM - edited 09-21-2013 12:42 PM
I am trying to figure out what steps I need to take in order to Rehab my defaulted loan. I owe a VERY small amount ($2800) to the govt. I think the DOE is my current loan holder, do I need to contact them directly to initiate the process? also did I have to make 9 on time payments prior to default? any correspondance on this matter would be greatly appreciated!! Also on my National Student Loan Data System loan detail sheet, it says DEPT OF EDU/FEDLOAN SERVICING(PHEAA) is the Servicer/Lender/Guaranty Agency/ED Servicer. Does that mean the DOE is the loan holder?
09-23-2013 01:05 PM
You can contact them once you hit default I think.
Once in the program, you make 9 monthly payments and then it is resold to another lender. My original was Direct Loans and they will wipe out all negative history and show current and pays on time once the loan is resold. They also wipe out the interest penalty.
My last payment is in February of 2014, so I will keep you posted.