06-23-2011 06:00 PM
Well I'll let you know what happens.
Was hoping someone would have been through this to get an idea but guess we're not in that common of a situation.
My 9th payment is July 15th so hopefully I can find out then.
I'm not being garnished since I started my rehab and was self employed before moving to Colorado. I initiated the rehab once I started working here. At the time they didn't even know what state I was in. However my Federal returned was garnished even though I was 4 months into the rehab at the time. State wasn't touched.
One thing I don't like is how 95% of all my payments are towards interest and fees. I'm in an agreement that my fees would drop off and my interest would be reduced once rehab is complete. But if I was responsible 12 years ago I wouldn't be in this situation.
Hopefully I can have a deducible on these payments since it's nearly all interest next years return.
06-25-2011 09:12 PM
hey just wondering how you got your loans into rehab? Mine are currently being garnished out of my wages, i owe approx 10K in student loans. I'd love to do this loan rehab especailly now that i have a great job and extra income! i screwed up my credit pretty badly and my husband will be getting out of the military next year and we need to buy a house but my FICO score is LOW LOW LOW mostly due to these darn student loans i screwed up on. Any advice? thanks!
06-26-2011 08:30 AM
Just call them company that has your loans up and tell them you want to rehab the loans. They will give you a figure that you will have to pay (in addition) to your garnishment amount., probably around 100 for you...although I may be off. Your garnishment will not stop until your 9 payments are finished (in some cases 10) and your loans are picked up.
06-27-2011 11:15 AM
tburns, they are going to garnish your federal until you satisfy the rehab. I just made my last payment on 6/7 and called NCO, the firm I did the rehab with. They are now forwarding the proof of my 9 consecutive payments to the US Dept Of Ed and by the week of 7/7 I can start calling the Treasury Dept to see if I am still on their list of loan defaults. As soon as I come off that list, I can file my 2010 taxes (for which I applied for a 6 month extension). Then the long awaited effect on my reports occurs, and I hope its really big.
Also, all of my payments went toward interest and fees, which is why anyone looking to rehab should negotiate the lowest payment they can, even if you have to throw a little BS in there. Before you speak and negotiate a number, take a pen and paper, assume you make $300 a week and break down your bills so it looks like you have little extra cash flow. This may seem shady, but when you finish making your payments, the interest and penalties are removed anyway, so it is just money pissed to the wind. Nine payments is nine payments, period.
There are six negative "collections" tradelines on my reports, it is supposed to all consolidate into one that should say should have an age of 15 years. Hopefully this is all true, I just wish we could get someone to reply with some solid facts. Looks like I'll have to be that someone, I'm only about 45 days away from it happening.
06-27-2011 05:57 PM
I'm looking forward to your info personally.
My 9th payment is 7/15. I'm hoping that they do age my new TL to '99. Until last summer I didn't worry too much about my credit just thought it was trashed due to the SL.Once I checked my CR after the move and saw it was completely blank with no SL at all I dug up a collection letter and asked for rehab. I was hoping that I could avoid the student loan coming back and hurting me before rehab was complete. To that end I think I succeeded. Eight on time payments and no negatives on my CR.
However, since I started building my credit I now have AAoA at 2 months with the oldest being 8 months. So if they do put a new TL dating back to '99 with pays as agreed then I'll be a very happy camper
I also agree with you on negotiating lowest possible payments for rehab. I actually just let them tell my what I'll be paying. Looking back now I could have probably got a much lower payment and saved thousands since the fees and interest will be cut soon anyways.
I'm hoping for a decent deducible next years taxes since most of all these payments were interest along with 100% of my '10 return
07-01-2011 09:53 AM
Hello. Recently I began rehabing my loans. While Rehabilitation was very straight forward for many of you, for me it was a crooked path. Student Loan Rehabiliation - I have read everything I could find on it. In Psychology there is this thing called "replacement" where you swap one self destructive behavior or addiction for a possitive "healthy addiction". That's me. I had was the worst storybook case you could imagine.
Trade lines from 94 to 99 then more later
One set with one creditor
another with another
Some on the books, (showing on FICO) others dropped off
First set of trade lines - 9th payment made - did all the things I was told - 9 months later, letter.... then another saying my loan was picked up- about 2 weeks later
19th of the month...
by the 1st of this month, all the stuff is gone from credit - vanished
next week or so it should show as multiple trade lines all with paid as required and a backdate
The second set of loans is worse. Even more money. Even more trade lines.
However it is not on my credit.
I was told this did not matter by US Department of Ed phone - they said because of one organization closing it out and sending to another, then another, then another, and then finally another that this is all an attempt at finding and getting payment on the loans. One set was with DCS and then not, and then a week later back again after they found me and were working with me....
Anyway I had 12 other unpaid items
I got 7 paid
now all that remains is housekeping on 5 neg items
6 inquirees that are about to drop off
and allllll these trade lines that are going to get possitive
so thats whats happening now... will update later.
07-01-2011 12:16 PM
07-01-2011 12:33 PM
I do appologize. After the accident I have difficulty sometimes sentence forming. Sorry.
Anyway if the contest was based on most improvement, I will win.
07-06-2011 10:05 AM
thats fine...my only question is this... when you finished the rehab and the tradelines showed pays as agreed, did it still show that you were late and have a date that it would fall off of your report, or were there no negatives at all?
07-06-2011 10:13 AM
Rehab only deletes late payments from the time it went into a "Collections" status, according to Sallie Mae as of yesterday. Basically that means no matter what you will always have about 10 months of late payments. When my rehab was done all my accounts went to Paid In Full/Paid Through Insurance, all lates deleted except 10. Most of those accounts hit DoLA so I am having them removed.