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Established Contributor
FicoTron
Posts: 512
Registered: ‎01-27-2011

Re: Student Loan Rehabilitation And The Effect On Tradelines

i see...I've seen problems in other forums with Sally Mae not cooperating fully with this.   In fact, only with Sally Mae have I seen this complaint.  I've seen posts on how Direct Loans and others have fully removed ALL bad marks. 

 

This is why I started this thread, in hopes that we can get some solid, definitive answers...thanks to you guys we are getting some.  But there is still so much gray area.

 

I have been told by NCO and the Dept Of Ed that it will be totally wiped off.  I find out this month what the real deal is.  I made all 9 payments to NCO, they put the motion to turn it over to the DOE and now I wait til the DOE contacts me.  They said sometime this week I'll hear from them.

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Regular Contributor
tburns
Posts: 151
Registered: ‎11-04-2010

Re: Student Loan Rehabilitation And The Effect On Tradelines

cfinkman, when was your 9th payment btw?

 

Just kinda want to get an idea on how long I need to wait for this to play out. My 9th payment is is 9 days. But is seems I might have to wait nearly a month to see anything going by your experience I'm guessing.

 

My loans were Direct Loans so hopefully it goes smooth. I pray it comes back onto my report as a '99 loan, not a 'new' 2011 one. But we'll see

Regular Contributor
MattieNumNums
Posts: 125
Registered: ‎04-06-2011

Re: Student Loan Rehabilitation And The Effect On Tradelines

NCO had one of my loans and it was deleted immediatly upon consolidation.

Salie Mae seems to be intent on ruining peoples lives if they are late. 

Starting Score (12/1/2010) - EQ: 495 / TU: 490
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Senior Contributor
laz98
Posts: 4,291
Registered: ‎09-06-2008

Re: Student Loan Rehabilitation And The Effect On Tradelines


tburns wrote:

cfinkman, when was your 9th payment btw?

 

Just kinda want to get an idea on how long I need to wait for this to play out. My 9th payment is is 9 days. But is seems I might have to wait nearly a month to see anything going by your experience I'm guessing.

 

My loans were Direct Loans so hopefully it goes smooth. I pray it comes back onto my report as a '99 loan, not a 'new' 2011 one. But we'll see


look at at this way:  you've waited 9 months, what's 1 more at this point?  it sucks, but you've already done the really hard part.  great job!  :smileyhappy:

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Established Contributor
FicoTron
Posts: 512
Registered: ‎01-27-2011

Re: Student Loan Rehabilitation And The Effect On Tradelines

tburns- 9th payment was June 6th.  I waited 2 weeks and called NCO, who was handling the rehab.  They said  that they forwarded the info to the DOE and that they would contact me by the second week of July.  

 

Funny thing about it is that I got a letter from the DOE dated June 24th say something along the lines of "congrats, you only have 1 more payment to complete your rehab", so I called and they said the same thing NCO did.  Just wait til the second week of July, if you don't hear anything, call us.  So we wait.

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Member
RU4Real
Posts: 9
Registered: ‎12-21-2010

Re: Student Loan Rehabilitation And The Effect On Tradelines

this might help explain it a bit: http://www.ombudsman.ed.gov/rehab.html keep in mind that the original lender before the default is required to only remove the "default" status. The payment history remains. However I think some confusion comes in when the guarantor (the entity that got the loan and that you are rehabbing with) often will delete their credit reporting. A lot of people think this means the lender will too, but that is not the case. For example: ABC Bank was the lender/servicer. You defaulted so your loan went to ABC Guarantee Agency. You work with them, make your 9 payments and they, ABC Guarantee Agency, tell you they will delete the reporting. That is only for the period of time during which they had your loan. ABC Bank will be notified when you rehab but all they are required to do is change the default status to "transferred" status. There are Metro 2 guidelines for credit reporting specifically for rehabilitated student loans. But even removing a default should improve your score, even if the late payments are still on there. Good luck!
Established Contributor
FicoTron
Posts: 512
Registered: ‎01-27-2011

Re: Student Loan Rehabilitation And The Effect On Tradelines

RU4Real - I have heard this before, and have read that link before as well.  From what I have read, if the loan is with Direct Loans and dealing with the DOE, in some cases that I have seen online, ALL neg's are deleted.  While I have also seen that with other lenders, the neg's remain.  I will learn first hand within the next month or so...

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Established Contributor
FicoTron
Posts: 512
Registered: ‎01-27-2011

Re: Student Loan Rehabilitation And The Effect On Tradelines

UPDATE:  I spoke with DOE today and the loan is fully rehabbed as of 7/5.  The loan is in the process of being sent to Direct Loans, who are going to reassume the loan and contact me by months end.  I did ask about what will be reported to my CR's and the rep said only the default status would be removed but he sounded like the wrong person to be asking.  Besides, I assume it is Direct Loans who reports now and it will be up to them.  Although all of the tradelines say US Dept Of Education on them.  If only the default status is removed, it will remain on my report until 2013, and that would be absolutely horrible.  As usual, I still have absolutely no idea what is going to happen. 

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Regular Contributor
MattieNumNums
Posts: 125
Registered: ‎04-06-2011

Re: Student Loan Rehabilitation And The Effect On Tradelines

Exactly what I was told and when all was said and done anything collections and any lates accrued during such were removed. The only remaining marks are the lates leading up to collections.

Starting Score (12/1/2010) - EQ: 495 / TU: 490
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Valued Member
kendrajo
Posts: 35
Registered: ‎07-04-2011

Re: Student Loan Rehabilitation And The Effect On Tradelines

Hopefully by now you've received your answers, but just to give you even more reassurance...I've had loans rehabbed with Direct Loan, which IS the DOE and all my negative information was deleted and reported as paid on time/paid in full for the months of the rehab AS WELL AS the months leading up to the rehab (those disaster months). I have done several rehabs (at least 3)...I'm in one right now and they have ALL been positive for me. Good luck to you!


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