Student Loan Rehabilitation And The Effect On Tradelines

[Anonymous]

Good plan.

In all honesty if you have direct loans and your interest rates are low ( mine are just over 2%), student loans should be your last priority. Pay higher rate debt first, establish emergency fund of 3-6 months living expenses, then student loans. I'm in no way saying not to pay them, just make the best use of your money.

That's my recommendation, my opinion.

[Anonymous]

Update: - Day 13 since rehabbed loan was picked up - the active collections TL has been removed from EQ per Credit Karma.  I haven't received an alert here at MyFico yet.  EQ FAKO jumped 26 points!!!!!

[Anonymous]

Update: Day 20 - disputed lates on old SL TLs from Direct Loans.  From what I've read DL won't reply to disputes so the CRA should remove the lates without an issue.  Once these come off and my new 8 year old TL with prefect payment history shows up I expect a pretty big jump in my score.  Looks like I may be graduating to big boy credit cards before the summer.....now to wait 30 days......

[Anonymous]

Update: Day 24 - Old SL TLs have been deleted from EQ.  There were several 120 day lates on the two TLs, but I only got a 12pt increase.   I was hoping for more.  Hopefully when the new TL gets added there will be a bigger bump.

[Anonymous]

Finally on 3/6/15 Fed Loan Serv. reported to Equifax of my new tradelines although, my score decreased by 10 points when this happened Not sure as to why?... I believe that is because it looks like its being reported as a credit card which has a balance.  Not sure why that looks that way either. hopefully that will change and correct itself. But so far I lost 10 points... which is NOT what I been waiting so long for... I will update the thread later when the others agencies have notified me of the accounts reporting so far it's only Equifax. And I pray that I finally see some type of jump/increase to my scores... Right now I am at 693 Transunion; 677 Equifax; and a 693 with Experian... My other scores increase from my last update because I have been doing my gardening, which is working I just need  these new tradelines to report and hopefully I will be nicely into the 700's across the board!!!!! So till next time...... #WishMeLuck

[Anonymous]

New here and grateful for the helpful info on this forum. My student loans defaulted in 2010 and I just made my 9th rehab payment with Performant Recovery in 03/2015. I called my Performant rep. today who confirmed that my student loans rehabbed 4/3/15.....less than 2 weeks after my 9th payment posted! I'm very excited to see how this will boost my credit scores as I'm currently in the 550 range with all 3 bureaus.

I was told to wait until US Dept. of Education contacts me with my new loan servicing provider info. In the meantime I faxed in my completed public service loan forgiveness certification form (as I work for a govt. agency) so that after I make 120 payments the balance of my loans and interest remaining will be forgiven completely. In 2010, my student loan debt was $42k.....after 5 years in default it climbed to $62k due to collection costs and interest. As of today, all collection costs have been waived and I now owe $50k at 6.8% interest. I plan to ask for the lowest monthly payment plan possible and think I will only end up paying about $26k after my 120 payments have been made.

Now I'm just waiting to see the default and negative payment history removed from my credit reports. Need to hit that 620+ fico range as I want to buy a house.

[Anonymous]

Also....what is this garden u guys keep talking about? Is that some kind of credit metaphor? <=== out of the loop here

[Anonymous]

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@Anonymous wrote:

Also....what is this garden u guys keep talking about? Is that some kind of credit metaphor? <=== out of the loop here

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Gardening means they are NOT actively looking for new CC deals or anything because they have too many new accounts atm.

MY Sallie Mae loan was rehabbed after being in default for MANY years.

No negatives ever came over and it helped my AAoA quite alot that I had
and older loan still active....

[Anonymous]

My new loan service provider is Navient (as of 4/10/15) and somehow my monthly student loan payment is only $73.50 per month which is less than I paid during the rehab period. I wonder if it will stay this low? If so.......I'll only pay about $9k over the course of 120 months and $41k will be forgiven!!! No change to my credit reports yet.

[Anonymous]

Hello All I have followed this thread since 08/2014 and i wanted to share my story.  I made my first sl rehabb payment with the Dept of Ed myeddebt.com 8/28/2014, and my last 4/2/2015.  On 4/15/15 i went online to nldls.gov and saw that my defaulted loans were now going to be serviced by Nelnet, however i had not recieved any communication with them and when i called to set up my payments they told me that they did not get my file yet.. This morning I went online to nelnet and was finally able to register and see the 50k in defaulted loans i had, so i instantly set up my auto debit.  On 4/17/15 myfico updated with Experian only and my score went up 15pts and it shows the 6 line items on my report updated to Paid Collection, i can only see this as an alert so i will pull my report once all 3 update and the new loan shows on my reports to see how they list my defaulted loans. 

So now I am waiting for EQ and TU to update with the status of my defaulted loans and then i will wait to see how Nelnet will now list my loan on my reports.  My question is for anyone who has rehabbed with Dept of Ed and the loans were now sold to Nelnet, what happened with the reporting of the rehabbed loans and how does Nelnet report the loan, does it really go back and report on time payments from the beginning and how long do i have to wait to see Nelnet report??

Thank you everyone in this thread you have all been tremendous in my research!!