Student Loan Rehabilitation And The Effect On Tradelines

[txbusted]

I had loans with ACS as well that defaulted to TG. My payments were the 24th of every month. This month is my last payment and I am kinda worried. Since the 24th is Christmas Eve I know that my payment wont come out/post until the 26th if I am lucky. I am so ready for this to all be over. 

I will try to update once all is said and done so others will know. 

[TheBoss]

I make my payments on the 30th each month, but my collection agency called me about a month ago and asked if I wanted to make my final rehab payment on the 17th of this month so it could make it into the batch of loans they sent out on the 18th. So now I play the waiting game. I appreciate them being proactive, though.

[txbusted]

Update....

I didn't have to make the 10th payment afterall. My loans have now been sold to another company as of the 20th and I will find out soon when the new due date is. I am so happy. They did confirm today that my credit report should update in 30-45 days. 

Yay!!!

[Anonymous]

Update: Nearly 3 months after completing rehab my SLs are still NOT being reported to CRA. Talked to them and they refuse to tell me when or how often they report.

[Anonymous]

Climbingonup, I'm in the same boat, I've called 5 times hoping to get info, I'm with pheaa... they got my notes Oct 20 or 21... this is a bit rediculous, my 2nd payment drafts tomorrow so maybe soon, the last woman said don't even consider it posting before Jan 2nd, I guess they are on holiday. Trying to get a mortgage soon, this blows.

[Anonymous]

sabwcu-PHEAA and FedLoan Servicing are the same company IIRC. These ppl are a joke. 60 days to approve IBR application? Watch your accounts closely, they are calculating my interest wrong.

[Anonymous]

Yea, I'm paying the full amount, 25$ extra actually, bank debit. So they only have to post my lines, it must be rocket surgery I guess. How are they screwing up your interest? Today is like 68 days or so since they bought my notes btw.

[Anonymous]

My monthly accrued interest should be roughly $13. I've pd 4x that in interest in less than 3 billing cycles. Noticed it after first statement, so I let them take the full payment via electronic debit. Made a second payment which posted 3 days after the first payment , which should have been applied to principal. The next day, they showed that I owe nearly $15 in accrued interest. Thats more than my interest for the whole month, and next statement isn't for 3 weeks!

[Anonymous]

I think if u want to make extra interest free payments you have to pay on a specific loan or pay over on your bill, paying multiple times would just "get you ahead" of your cycle... paying the interest for the next month as well. I do reserve the right to be wrong; however, my 25$ extra went to the principle amount. Any fico geniuses reading to answer this definitively? ?????

[Anonymous]

I'm aware of the process. That is why I made my extra payments via their website, immediately after my normal payment posted, so I could allocate the payment to specific loans, and to designate the additional payment should go to principal. In this case no more than 3 days interest should have accrued.

Outstanding principal x int rate/365.25

Ex: $7500 x .0208/365.25 =.4271 in daily interest
$1.28 in accrued interest for 3 days
$12.82 interest per month
And they still are accruing close to $20/ month in interest over what I should be paying.

No where on their website can I determine where they are coming up with the extra interest. I spent over an hour on the phone with them on three occasions, and the only answer I was given is that it was from when my loans were in default.Now keep in mind the rehab was completed less than 3 months ago. I was told by 2 different ppl at DOE, and a supervisor at CA who handled my rehab that ALL outstanding fees and interest would be capitalized prior to the loan being transferred to a new servicer post rehab.

Do I want interest capitalized, of course not. All I want is an explanation of exactly how much "extra" interest I supposedly owe above the $13 that should accrue each month.

Beyond that, payments are applied to fees, interest, then principal. So why are my normal monthly payments split between principal and interest? If there is this "extra" interest out there in limbo ALL of my payments should apply to interest until that interest is paid off.

Sorry for ranting. Thanks