Student Loan Rehabilitation (Expected credit score increase?)

[Anonymous]

I hope you're pleasantly surprised - hang in there - 2 months is only a lifetime away....

[GvilleMom]

I have been very thankful to have found this forum when I was going to through the loan rehabilitation program... it gave me hope!  I have had a rave of negatives on my credit report and I have paid all put 3 medical bills off.  Some accounts were deleted after I paid them, then disputed.. and others remain but were updated as "paid".  NOTE that paying off something on your credit score will NOT increase your credit score.  It will only allow the company to update your credit report saying that you paid.

Anywho.  I began the loan rehabilitation progarm in February 2013.  My payments are only $55/month and my 9th payment is in 6 days!  I can't wait!

Helpful information for those that are waiting on their 9th payment and wondering about when the negatives will be removed from your credit report.. I have called ECMC a few times and here is what I have been told:

1)  Your loan will stay in DEFAULT status until it is picked up by a lendor. 

2)  Your loan will be assigned a lendor within max 30 days after your 9th payment.

3)  When a lendor is assigned to you, the lendor will notify you by mail.  Call the lender and setup a payment plan with them or a defferment if you are in school. 

4)  About a week after your lender is assigned to you, you will receive a letter from ECMC stating you have completed your loan rehabilitation and you should see your credit report updated to its pre-default status within 45-60 days.

NOTE:  This is because ECMC only reports to the credit agencies ONE time per month (the first Sunday of the month).  Then, the credit agencies have about 30 days to update your credit report.  So, the entire process can take a while.

AN ALTERNATIVE TO WAITING:  ECMC literally told me that once I make my last payment, contact each credit agency and dispute the ECMC/student loan charges on my credit report.  By law, both ECMC/student loan companies will have to update your credit report within 30 days of you filing or the negative reports will automatically fall of your credit report.The lady at ECMC says that she sees people use the disputing method as a quicker way to get their credit report updated. 

On 10/9 I plan to dispute the ECMC/student loan reports on my credit report.  I will update you my findings and also let you know how much my score improved when they were removed.

NOTE: ECMC is listed on each agencies report (2) times.  Additionally, Citibank is listed ANOTHER (2) times each.  So, a total of (4) negative reports will fall off of each credit report (Equifax, TransUnion & Experian).. a total of (12) negatives removed altogether.

I hope this helps someone else in my shoes.. and GOOD LUCK!

[knightro]

Please let us know what happens.  I am about to make my 8th payment and in November will make my 9th payment and complete the program.  My oldest account on my credit report is my 3 US Dept. of Education accounts and I think it is killing my score showing in collections.  I have done so much to improve my score over the last 2 years but I just can't seem to get that score going where I need it to to buy a home.  This is really a toll on me as I am feeling hopeless in owning a home in the near future.  I am really praying this helps once I complete it and that would be the best Christmas gift I could receive.....

I have not had a late payment in 2 years on anything and cannot wait for this to show as a positive.

[aspen12777]

I am on month 7.....

I will make my last payment on Nov.6.....

ECMC said the tradelines should be updated in 30 days and the loan should be sold by then as well.

Happy, Happy, Happy

[5starrchick]

Hi All! I am at the final round of payments on my rehab and many of your comments give me hope of a higher FICO. I have only a Feb & Mar pmts left. There are 27 loan entries on my CR dragging it down. 30-60 days feels like an eternity!!

Can anyone give more info on getting your loan picked up by another lender? Does this occur automatically at some point or shld the borrower solicit new lenders? Pls explain.
Thx!

[5starrchick]

It sounds like you are close 2 the finish line! You shld be very proud. #soon

[SCF]

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@5starrchick wrote:
Hi All! I am at the final round of payments on my rehab and many of your comments give me hope of a higher FICO. I have only a Feb & Mar pmts left. There are 27 loan entries on my CR dragging it down. 30-60 days feels like an eternity!!

Can anyone give more info on getting your loan picked up by another lender? Does this occur automatically at some point or shld the borrower solicit new lenders? Pls explain.
Thx!

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Once your rehab is completed, the CA will search for a new servicer for your debt.  You don't have to go out and look for a new loan.  Once you've made your final payment, contact your CA to see if they know who will buy the loan, or if they have a timeline.  If it takes longer than a month to get the loan sold, plan to make another payment to the CA and then plan to contact the new lender right away to see when your new payments begin.

[jorway]

i defaulted on my student loan in 2003 and i just made my final rehabilitation payment a few weeks ago i was told today my loan was back with sallie mae. Currently my student loan doesnt show on my credit report at all so does this mean that it will start reporting again from the original or the current date.

[scvbd99]

18 defaulted student loans were literally the only tradelines on my credit report a year ago.  My scores were in the mid 500s for the first couple of months of rehab, and low 600s by the time I was in month 6 of rehab.  

Once I completed rehab on all 18, the only negatives left were 3 tradelines that still reported late payment history leading up to the default (all the way up to 150 days, )

Anyhoo, my fico scores went up to nearly 700, and now that I got all of the cards in my sig in the past few months, and they've been reporting, my scores have gone up to around 720.  

It's a unique situation for each person about how much rehab will improve your credit score, though.  

[glory1]

Awesome!!!!!