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Regular Contributor
aot2009
Posts: 174
Registered: ‎02-08-2010
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Re: Student Loan Rehabilitation And The Effect On Tradelines

they removed everything bad and its positive account.
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O6
Posts: 3,626
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Re: O6 - I was talking about his unpaid loans... those don't...


cflinkman wrote:

O6 - I was talking about his unpaid loans... those don't fall off unless paid, and  at that point, he hadn't paid them.  As far as I know


Unpaid student loans do not remain on your credit report forever.  There is a drop-off date for everything -- including unpaid student loans.

IAALBNYL
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FicoTron
Posts: 512
Registered: ‎01-27-2011
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Re: O6 - I was talking about his unpaid loans... those don't...

maybe you are right O6, but in my case it is with the DOE, subsequently they would chase me for the rest of my life, starting with taking my taxes and garnishing my wages, so yes, maybe it comes off, but it isn't as easy as blowing off an old cell phone bill or something that legit wipes off with the SOL.

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Senior Contributor
O6
Posts: 3,626
Registered: ‎10-13-2009
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Re: O6 - I was talking about his unpaid loans... those don't...

[ Edited ]

cflinkman wrote:

maybe you are right O6, but in my case it is with the DOE, subsequently they would chase me for the rest of my life, starting with taking my taxes and garnishing my wages, so yes, maybe it comes off, but it isn't as easy as blowing off an old cell phone bill or something that legit wipes off with the SOL.


A common misconception is that the statute of limitations (SOL) determines when an item must fall off your credit reports.  With very few exceptions, the SOL does not determine the credit reporting time period (CRTP) and student loans are not one of those exceptions.

 

It does not matter who holds the student loan or whether they are obtained directly from the government or a private lender.  All student loans have a set time when they must fall off.  Just because they do fall off your credit report, though, does not mean the lender cannot continue hounding you for the rest of your life.

 

20 U.S.C. 1080a(f): Duration of authority

Notwithstanding paragraphs (4) and (5) of subsection (a) of section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)(4), (a)(5)), a consumer reporting agency may make a report containing information received from the Secretary or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower's defaulted account on a loan guaranteed under this part until -

(1) 7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty;

(2) 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or

(3) in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan entered default such subsequent time.

 

Now, could student loans report longer than certain other types of debts?  Yes.  However, they do fall off.  Still, there are some debts that for CRTP purposes can be much worse than student loans.  Child support arrears, in certain cases, can report for 28+ years.  Between a defaulted student loan and child support arrears, I'd take the student loans any time -- hands down.

IAALBNYL
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aot2009
Posts: 174
Registered: ‎02-08-2010
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Re: O6 - I was talking about his unpaid loans... those don't...

O6 are you saying 7 years is when a student loan falls off your report if it has negative information?

 

>>Now, could student loans report longer than certain other types of debts? 

Could you provide an example?

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FicoTron
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Re: O6 - I was talking about his unpaid loans... those don't...

UPDATE:  Got a letter from Direct Loans this time saying that my loan is rehabbed and  out of default status.  They also sent me a  letter stating that my first payment is due on 9/7.  The payment is the same payment I negotiated with NCO..  They do however say that I can call and try to set up new terms.  I'm also getting .25% off of my interest rate simply by paying electronically.   So, now I'm just waiting for the reports to update.  The DOE reported to Experian within the first few days of July, when the loan hadn't come out of default yet.  Hopefully TU and EQ report for July or early in August and I'll be able to relay the info to whoever is keeping up with this thread.  They don't report every month, sometimes they take a month off...hopefully not.

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sunshine054
Posts: 1
Registered: ‎07-21-2011
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Re: Student Loan Rehabilitation And The Effect On Tradelines

Once you receive your response can u pls post?

Established Contributor
FicoTron
Posts: 512
Registered: ‎01-27-2011
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Re: Student Loan Rehabilitation And The Effect On Tradelines

I will definitely update...I just made my 9/7 payment to Direct Loans a month early.  All of my reports still show 8 seperate collections to the DOE.  This is most certainly going to be the most in depth coverage of someone doing the rehab process and what it did to their CR and score.  I should know, I've been scouring the net for a year trying to find solid info and can't. 

 

tburns- how is your progress coming?

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Regular Contributor
tburns
Posts: 151
Registered: ‎11-04-2010
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Re: Student Loan Rehabilitation And The Effect On Tradelines


cflinkman wrote:

tburns- how is your progress coming?



Still waiting to hear something. I guess I need to call the CA that handled the rehab before the 15th. I did receive a letter from the DOE on the 1st stateing my payment was due on the 15th for $183 but it was the same letter I've been getting from them on the first since rehab started.

Member
KDJ2011
Posts: 8
Registered: ‎08-09-2011
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Re: Student Loan Rehabilitation And The Effect On Tradelines

I figured I would share my experience with rehabbed loans, too, in case someone else is in the situation I was. I defaulted through AES in February of 2008. I began rehabilitation in early 2009, and it took nearly 18 months to complete the process and find a buyer for the loan. I have to say, they were NOT easy people to work with. Six months into making timely payments, I hit a financial rough patch and called them to change my due date for the month. The rep on the phone gave me an incorrect email address to submit the request to, so they never got it, and my rehab clock was reset, and I had to start the process all over again. I at least had vindication in that I was able to make them dig up the recorded phone call to prove he gave me incorrect information, but they still refused to work with me in not resetting the process.

 

Anyway, I finished my rehabilitation in August of 2010, and TU removed the negative tradeline COMPLETELY. However, EX and EQ were still showing the loan as "Assigned to government" or "Claim filed with government" with all of the late payments still showing. This past June, I disputed this info with them, and Equifax has now removed the late payments and the status of the loans shows as "current." Experian, on the other hand, changed the status to "Transferred; closed," and the late payments are still showing up. 2 out of 3 isn't bad, and I'm at least thankful for the status update from EX, but it is still a source of frustration when I see my report. I also didn't get much of a bump, if any, in my score after this was corrected. I may call AES directly and see if they can work with EX, since the other 2 CRAs removed the negative information. Wish me luck if I do--we do not have a friendly relationship! And best of luck to all of you who are in this boat. It's a pain in the butt, but you will be so relieved when it's completed, I assure you!

8.8.11 EQ608 EX625 TU641

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