Student Loans

[JohnDoe12]

I was just told by Sallie Mae that they must report all 90+ days delinquent accounts due to the Fed Family Education Act persuant to Higher Education Act. 1965.

Has anyone heard of this?

JD12

[chevyman]

I would look it up but I believe so but that company that I am working with says that after I complete the rehab program that to late payments will be removef

[JohnDoe12]

I'd look into that before you hire them.   Sallie Mae is saying it would be illegal to remove them; they are obligated by law to report 90+ days late, even with retroactive forbearance.

Best,

JD12

[SCF]

I'm not completely familiar with the law, but I will say this: many people here and on other forums have reported that Sallie Mae does NOT remove lates and/or the original account associated with a defaulted student loan that has been rehabilitated.  They stick to a strict interpretation of the law, which only specifically requires them to remove the default status.

Other people have reported that other services sometimes DO remove those accounts and/or lates.

The moral of the story is that, there are multiple policies and interpretations out there, and your mileage may vary.

[twall06]

They can remove them it is not illegal but they are not required to remove it . If it is accurately reported they can keep it on there . Best thing would be to call them then gw them be polite with them getting upset or angry won't help. Call a few times a week at different times maybe one of the people you get will help you .