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Valued Member
klondike
Posts: 111
Registered: ‎09-05-2013
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Re: Student Loan Rehabilitation And The Effect On Tradelines


tfkallday wrote:

I just wanted to update you guys on my story.  Every last derog from all my previously defaulted student loans has been deleted.  All defaults, all lates, etc etc.  They have all been deleted.  The last one I am working on is my Perkins through my school.  I have completed rehab just waiting for the school to report this so.  And I am staying on them about it too!


That's awesome!

 

I make my final rehab payment on the 14th of Feb and can't wait. I signed a purchase agreement with a front end lease until I can close later this spring.


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darichmon
Posts: 1
Registered: ‎02-04-2014
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Re: Student Loan Rehabilitation And The Effect On Tradelines

Which company did you use for your rehabilitation? I was sent to national enterprise systems and they are trying to take 18.5% of my overall.

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SCF
Posts: 1,108
Registered: ‎06-09-2008
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Re: Student Loan Rehabilitation And The Effect On Tradelines


darichmon wrote:

Which company did you use for your rehabilitation? I was sent to national enterprise systems and they are trying to take 18.5% of my overall.


You rehab your loans with the CA that currently holds them.  I've never heard of National Enterprise Systems, are these federal or private loans you're refering to?  To rehab federal loans, there is no charge, so either you're dealing with private loans, misunderstood the CA, or they were offering something else entirely.

Regular Contributor
scvbd99
Posts: 212
Registered: ‎02-22-2013
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Re: Student Loan Rehabilitation And The Effect On Tradelines

[ Edited ]

darichmon wrote:

Which company did you use for your rehabilitation? I was sent to national enterprise systems and they are trying to take 18.5% of my overall.


18.5% is the standard collection cost added to the principal for rehab, completion of which removes the default status of the loan from credit reporting.  18.5% is much lower than the standard collection costs added to most other installment loans that go to a collection agency.

 

 

I think people misunderstand this a lot.  Rehabilitation is not "free" when it comes to collection costs being added. It's a collection account that you have a one-time opportunity to get back into standard repayment and get all of the info regarding it as a collection account removed.  It would be nice if rehabilitation also guaranteed zero collection costs, but that's simply not the case.  

 

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dmar725
Posts: 19
Registered: ‎02-07-2014
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Re: Student Loan Rehabilitation And The Effect On Tradelines

Hello! I'm sure my answer is somewhere already......but i'd be here all night trying to get through the 600 pages of this thread :smileyhappy:


Here's my situation:

 

In March of 2012, General Revenue Corporation offered me the Rehabilitation for four defaulted Sallie Mae student loans. I completed the rehabilitation in December of 2012 and, at that time, I recieved a letter from Michigan Guaranty Agency saying ""we would like to congratulate you on the rehabilitation of your defaulted education loan(s)...blah blah blah.....In addition, we will notify the guarantor's reporting for the loan(s) that has been rehabilitated."  ACS picked up my loan at that time and i have been making payments to them ever since.

 

fast forward to now. My four accounts that got rehabilitated are still showing up as negative on my credit report. The current status on my experian report on myfico says "Pays account as agrees" but it still shows the deliquincies. My experian report on freecreditreport.com says "account transferred to another office"

 

My question is, is it possibly to get the deliquincies deleted? When i started this whole rehabilitation program i was under the impression that the student loans would show up as a positive on my credit report....and they're still right there with the big red exclamation mark next to them :smileysad: I've called General REvenue who told me to call Michigan Guaranty AGency who told me to call Sallie Mae who told me to call Michigan Guaranty Agency. This has been a headache.

 

Any advice??

 

p.s., hi, i'm new.

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SCF
Posts: 1,108
Registered: ‎06-09-2008
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Re: Student Loan Rehabilitation And The Effect On Tradelines


dmar725 wrote:

Hello! I'm sure my answer is somewhere already......but i'd be here all night trying to get through the 600 pages of this thread :smileyhappy:


Here's my situation:

 

In March of 2012, General Revenue Corporation offered me the Rehabilitation for four defaulted Sallie Mae student loans. I completed the rehabilitation in December of 2012 and, at that time, I recieved a letter from Michigan Guaranty Agency saying ""we would like to congratulate you on the rehabilitation of your defaulted education loan(s)...blah blah blah.....In addition, we will notify the guarantor's reporting for the loan(s) that has been rehabilitated."  ACS picked up my loan at that time and i have been making payments to them ever since.

 

fast forward to now. My four accounts that got rehabilitated are still showing up as negative on my credit report. The current status on my experian report on myfico says "Pays account as agrees" but it still shows the deliquincies. My experian report on freecreditreport.com says "account transferred to another office"

 

My question is, is it possibly to get the deliquincies deleted? When i started this whole rehabilitation program i was under the impression that the student loans would show up as a positive on my credit report....and they're still right there with the big red exclamation mark next to them :smileysad: I've called General REvenue who told me to call Michigan Guaranty AGency who told me to call Sallie Mae who told me to call Michigan Guaranty Agency. This has been a headache.

 

Any advice??

 

p.s., hi, i'm new.


Rehabilitation removes any remarks related to the default, that means that any reporting by the CA you rehab'd with (sounds like General Revenue Corp in your case) should be removed, any comments like "assigned to government" or "default" should be removed from the original tradelines.  It sounds like that has happened in your case.  The good news is that ACS should also be reporting a new, clean tradeline with an open date the same as your original loans, and that will be a boost to your score.

 

You can always goodwill the lender reporting the lates to see if they will remove them, but they aren't required to.  Not a lot of folks have had much luck with Sallie Mae, but it can never hurt to try!

Established Member
dmar725
Posts: 19
Registered: ‎02-07-2014
0

Re: Student Loan Rehabilitation And The Effect On Tradelines

I guess it wouldnt hurt to try to GW Sallie Mae... im not getting my hopes up though based on what i've read about it here :smileyhappy:  Do closed student loans fall off of your credit report after 7 years?

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Waytogo
Posts: 14
Registered: ‎02-11-2014
0

Re: Student Loan Rehabilitation And The Effect On Tradelines

First off, I want to say a BIG Thank You to FicoTron and tburns, ash4life, and the Community Leader SCF, (myFICO.com) and others who were some of the earliest and thorough contributors to the forum. This information REALLY helped me a lot and according to the other views I'm not alone. I will make my 9th payment on the 17th (Feb 2014) and I hope my experience will help others. I was skeptical about this program because it came from a debt collection agency and you never really know if they are truly helping or hurting. One thing my contact did was allow me to make 2 payments this month, in order to get picked up by a lender sooner. She said that I should get picked this month if the payment goes through. And the total process of bringing my accounts current and erasing my lates should take about 45 days or sooner. As soon as I get information I'll post. Additionally, I'll post my total score points and any extras that helped the score. Update you all when I get picked up! Send me good credit vibes!

Member
Waytogo
Posts: 14
Registered: ‎02-11-2014
0

Re: Student Loan Rehabilitation And The Effect On Tradelines

[ Edited ]

dmar725 wrote:

I guess it wouldnt hurt to try to GW Sallie Mae... im not getting my hopes up though based on what i've read about it here :smileyhappy:  Do closed student loans fall off of your credit report after 7 years?


No I do not believe student loans fall off after 7 yrs or ever actually. I and a few people I know all had student loans and they keep udpating as time goes on. There are some rare instances where a judge can dismiss your studen loan debt but most people do not qualify. But there are programs I heard of where if you teach for x amount of years or work for some non-profits you can reduce or payoff your debt with a government program. No matter what happens, just make sure you keep your deferrments up and try to work out a payment with your loans. So you don't end up like us on this forum.

Valued Member
Sock
Posts: 51
Registered: ‎08-20-2013
0

Re: Student Loan Rehabilitation And The Effect On Tradelines

If it's closed, then yes, it should fall off after 7 years. But only if it's closed. Otherwise, it will never go away- not even if you declare bankruptcy.


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