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Regular Contributor
apandabear
Posts: 200
Registered: ‎03-15-2012
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Re: Student Loan Rehabilitation And The Effect On Tradelines

Congrats! That's fantastic news! Let us know how it goes with the old tradelines!

2009-10 - C/Os
2011 - Debts paid, no open credit
2012 - Rebuilding started, secured cards opened, SL rehabbed - EQ myFICO 636
2014 - 10k Discover, 3.5k Freedom, AmEx Green, SL, Auto Loan - EQ myFICO 695
Regular Contributor
InvincibleSummer2
Posts: 171
Registered: ‎06-15-2012
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Re: Student Loan Rehabilitation And The Effect On Tradelines

Yay!! That is great news. I'm happy for you.



Established Member
scotth1424
Posts: 10
Registered: ‎09-07-2012
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Re: Student Loan Rehabilitation And The Effect On Tradelines

[ Edited ]

Hey, I'm kind of new to the forums even though I've been reading peoples experiences since I started my rehab back in Jan 2012.  Thought I would share my experience so far since everyones seems to be alittle different.  My student loan started with Sallie Mae which then was tranferred/sent to USA Funds.  Some how Allied Interstate got involved and brought the rehab program to my attention which I started back in Jan 2012.  We set up payments of $180 a month for 9 months with me paying the first and last month up front.  So technically I only had a 8 month program.  Anyway, I made my last rehab payment August 20th and was told by Allied Interstate that my loans would be out of default and the negatives would be remove by Sept 6.  Haven't seen the changes to my credit report yet since I use FreeScore and they update my credit report once a month.  Well today I received a letter in the mail from Sallie Mae which they have picked up the loan again and I will begin making payments in the amount of $165.72 starting 11/09/12.  

 

So when I see the effects its had on my tradelines and credit score I will post and update.


Starting Score: TU (Fako): 502 EX (Fako): 505 EQ (Fako): 562
Current Score: TU (Fako): 611 EX (Fako): 573 EQ(Fako): 559
Goal Score: 700+


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Regular Contributor
apandabear
Posts: 200
Registered: ‎03-15-2012
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Re: Student Loan Rehabilitation And The Effect On Tradelines

Awesome! I am in the same situation... Sallie Mae - USA Funds - Allied Interstate. 

 

I also made 2 payments in the first month and was worried it would be a 9 month (10 payment) program. That is good to hear! I started in February.

 

Does Allied show anywhere on your credit report? (Doesn't on mine).

 

Hopefully USA Funds reporting goes away completely.

 

Let us know what happens to the Sallie Mae tradelines... If the lates go away, or they just start reporting positively. I am very interested to hear! Just a reminder, it could take 1-2 months for your credit report to update. 

 

Congrats!!!

2009-10 - C/Os
2011 - Debts paid, no open credit
2012 - Rebuilding started, secured cards opened, SL rehabbed - EQ myFICO 636
2014 - 10k Discover, 3.5k Freedom, AmEx Green, SL, Auto Loan - EQ myFICO 695
Established Member
scotth1424
Posts: 10
Registered: ‎09-07-2012
0

Re: Student Loan Rehabilitation And The Effect On Tradelines

[ Edited ]

apandabear wrote:

Awesome! I am in the same situation... Sallie Mae - USA Funds - Allied Interstate. 

 

I also made 2 payments in the first month and was worried it would be a 9 month (10 payment) program. That is good to hear! I started in February.

 

Does Allied show anywhere on your credit report? (Doesn't on mine).

 

Hopefully USA Funds reporting goes away completely.

 

Let us know what happens to the Sallie Mae tradelines... If the lates go away, or they just start reporting positively. I am very interested to hear! Just a reminder, it could take 1-2 months for your credit report to update. 

 

Congrats!!!


Allied Interstate isn't on my credit report.  The USA Funds accounts reflects the amount owed after each payment.  But I do have 7 tradelines for 2 loans which both were for $5,500.  My original loans open on 12/01/05 & 09/01/06.  Then they both were transferred on 06/01/08 (so thats four tradelines).  Then they were combined on 01/01/09 (so we are now at 5 tradelines).  Then i have the 2 USA Funds tradelines which are show me oweing $7207 and $8249.  So i have no idea whats going to happen with these tradelines but I'm guessing that USA Funds are going to remain and start showing current and the others will fall off.


Starting Score: TU (Fako): 502 EX (Fako): 505 EQ (Fako): 562
Current Score: TU (Fako): 611 EX (Fako): 573 EQ(Fako): 559
Goal Score: 700+


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Regular Contributor
apandabear
Posts: 200
Registered: ‎03-15-2012
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Re: Student Loan Rehabilitation And The Effect On Tradelines

Something I just remembered... Someone on the forum said that USA Funds only updates to the CRAs on a quarterly (every 3 months) basis. They disputed to speed up the process. Wish I could remember what thread that was. 

 

In a best case scenario, Sallie Mae would take your loans back. So USA Funds wouldn't start showing current. I suppose someone else could buy your loans, but it seems like every time I get a letter (you're almost there! keep paying!) it says Sallie Mae c/o USA Funds. So it seems like it'll stay in-house, if that makes any sense.  What I could see happening is USA Funds deletes their TLs, and Sallie Mae (or whoever owned your loans before USA Funds took over) will begin reporting current. I have no idea if that will mean a new TL on your CR, or if they'll start back up with the last one. I've seen several people report that is also backdates to the loan open date. For you that seems like it would be 1/1/09. For me that would probably be consolidation date in 2007.

 

This whole process is tricky and convoluted. But it's so very interesting. In theory I'm one month behind you... If Allied Interstate actually counted first and last month payments in Feb. I'm excited to be here anyway.

 

Also, another thing I forgot. Let us know how your loan balances change. They are supposed to remove some of the collection fees. I'm interested to find out how much that is for you.

2009-10 - C/Os
2011 - Debts paid, no open credit
2012 - Rebuilding started, secured cards opened, SL rehabbed - EQ myFICO 636
2014 - 10k Discover, 3.5k Freedom, AmEx Green, SL, Auto Loan - EQ myFICO 695
Valued Member
ch8ngeurstars
Posts: 25
Registered: ‎05-04-2012
0

Re: Student Loan Rehabilitation And The Effect On Tradelines

UPDATE!!!

 

    I spoke with AES today and they said that my payments would remain the same but I could do a different payment plan and have them lowered about 60 dollars. So thats cool that I have that option. I was also informed that my credit report should updte within the next month. One thing that caught my attention is that the service rep said that only the default status would be removed from my reports but all the late payments would remain. I told him that I was under the impression that the entire negative tradleines would be removed and he said no just the default status. Does anyone have any thoughts on this or input?


Starting Score: 435 EX(Fako)508 EQ(Fako)508 TU(Fako)522
Current Score: 521 EX(Fako)550 EQ(Fako)546 TU(Fako)525
Goal Score: 750 Across the board!

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Established Member
scotth1424
Posts: 10
Registered: ‎09-07-2012
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Re: Student Loan Rehabilitation And The Effect On Tradelines


apandabear wrote:

Something I just remembered... Someone on the forum said that USA Funds only updates to the CRAs on a quarterly (every 3 months) basis. They disputed to speed up the process. Wish I could remember what thread that was. 

 

Also, another thing I forgot. Let us know how your loan balances change. They are supposed to remove some of the collection fees. I'm interested to find out how much that is for you.


The lady I've dealt with at Allied Interstate told me the same thing.  USA Funds updates quarterly, but luckily my last rehab payment was Aug. 20th and was suppose to be out of default Sept. 6th.  Which is just in time as the end of Sept. would be the end of the third quarter.

 

My loan balances haven't changed a whole lot.  It's a $800 difference (which I guess is alot, but not compared to what I owe)


Starting Score: TU (Fako): 502 EX (Fako): 505 EQ (Fako): 562
Current Score: TU (Fako): 611 EX (Fako): 573 EQ(Fako): 559
Goal Score: 700+


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Established Member
scotth1424
Posts: 10
Registered: ‎09-07-2012
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Re: Student Loan Rehabilitation And The Effect On Tradelines


deefink1 wrote:

UPDATE!!!

 

    I spoke with AES today and they said that my payments would remain the same but I could do a different payment plan and have them lowered about 60 dollars. So thats cool that I have that option. I was also informed that my credit report should updte within the next month. One thing that caught my attention is that the service rep said that only the default status would be removed from my reports but all the late payments would remain. I told him that I was under the impression that the entire negative tradleines would be removed and he said no just the default status. Does anyone have any thoughts on this or input?


From reading this thread (and im not 100% on this either) but i think only Direct Loans have deleted negatives along with tradelines.


Starting Score: TU (Fako): 502 EX (Fako): 505 EQ (Fako): 562
Current Score: TU (Fako): 611 EX (Fako): 573 EQ(Fako): 559
Goal Score: 700+


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Valued Member
freshtalk
Posts: 38
Registered: ‎09-14-2011
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Re: Student Loan Rehabilitation And The Effect On Tradelines


scotth1424 wrote:


From reading this thread (and im not 100% on this either) but i think only Direct Loans have deleted negatives along with tradelines.


Yes, that is correct. Sallie Mae will not delete the entire tradeline, but they will update it and remove the default status. All of the old lates will remain, unfortunately. 

 

The DOE/Direct Loans on the other hand will completely remove all of the old tradelines. The DOE removed all of my negative info back in May when I completed rehab, but I am still waiting for a lender to pick up the loan (going on 5 months now).

 


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