Student Loans Rehabilitated---still on reports!

[Anonymous]

I feel like I'm so in over my head at this point.  I'll make this short so it doesn't get too confusing.....

I defaulted old student loans from my original lender (loan A, Nelnet) which is slapped all over my credit report.  Loan A sold my account to another company, Texas Guaranty, which I rehabilitated my loans with (Loan B), and from what I understand now my account is about to be sold to another company, loan C.  Loan B has assured me that it will be removing all negative entries from my credit reports, but it cannot remove loan A's negative entries.  Can Loan A stay negative on my credit even though I have rehabilitated the loans?? 

I have been in the rehabilitation program since January 2008, but because of the economy there haven't been any lenders buying these loans, therefore my rehabilited loans have been sitting with Loan B for 17 months.  I got a call from them two weeks ago telling me they FiNALLY got me a lender!  YAY!  It looks like I'm almost out of the woods, but still am desperate to get Loan A off my credit report.

HELP!!

[LynnInMN]

Rehab only covers your guarantor...so that tradeline will be reflected as positive.  Your lender/servicer who defaulted you will remain for 7 years from the time they filed the default claim with your guarantor.  This is all part of the higher education act.

[Anonymous]

They are listed as being opened since 1997 & 1998.  Since this is the case, are they required to remove them now?

[LynnInMN]

Open date doesnt count...when did they default?

[Anonymous]

According to HEA, they should "remove the record of default"

SEC. 426. DEFAULT REDUCTION PROGRAM.
Section 428F (20 U.S.C. 1078–6) is amended—
(1) in subsection (a)—
(A) in paragraph (1)(A), by adding at the end the
following: ‘‘Upon the sale of the loan to an eligible lender,
the guaranty agency or other holder of the loan shall
request any consumer reporting agency to which the guaranty
agency or holder, as applicable, reported the default
of the loan, to remove the record of default from the borrower’s
credit history.’’;

[Anonymous]

You just verified what Lynn was saying. The second company is now the guarantor, not the first. The original lender is under no obligation to do anything with what they are reporting, as they no longer hold the loan.