Updated Student loan collections

[CreditJunkie917]

Since I've been rehabbing since January, I noticed my TLs are reported as collections. Do banks consider these new derogs? Or are they an attachment of the OC of the defaulted loan? How does this look in lenders eyes when applying for new credit?

[SCF]

In terms of impact on your credit, SL collections are much the same as any other defaulted debt.  Some lenders are more sensitive to defaults than others, but if you can wait until your rehab is complete to apply for new credit, you'll probably get better terms and have a higher chance of approval.

[CreditJunkie917]

That's what I plan on doing. I'm happy where i'm at so far. for it's only been 5 months into the rebuilding. I'm farther ahead than I thought I would be. I just wanted to get some clarification. I don't like getting the denial letter in the mail and it states "serious delinquencies" as the contributing factor to the denial.

[Booner72]

Don't they remove the derogs after you are rehabbed?

Yes, each tradeline, if listed as a collection, is a negative on your reports. Might be work the 20 bucks to get Score/report here at myfico because they break everything down in such a great way to help you understand your report & score (If you haven't done this alredy).

[kjel]

My defaulted loans reported as the original trade lines that showed $0 balance, transferred (with the lates) AND collections account trade lines with full balances. When I finished rehab, I was picked up by Nelnet who reported two new trade lines with the same opening date as the original trade lines. The collections accounts were deleted. There was no removal of the lates on the original trade lines leading up to the default. The Dept of Ed explanation of rehabs do not state that the lates will be removed although many of their collection agencies do tell people that they will be. Some folks have been lucky and gotten them removed but many of us have not.

[CreditJunkie917]

Oh I do have SW on here. At the beginning of the year when I started getting back into the game of rebuilding, I pulled all 3 reports. The sucky thing was the printer i used was running out of ink and faded out my report numbers on TU and EQ. The only I know is EX and have been monitoring that religiously. But all three have the same tradelines when it comes to my student loans.

It also seems that 2 of my student loans(AES/PHEAA) are are assigned to their internal collection department, but my payments go through Account Control Technology. Not sure how this will affect the loans after they are rehabbed. and my other loan is a perkins loan, in collection with the DOE.

[CreditJunkie917]

I also have this on the two collection accounts. What does this truly mean since I'm rehabbing and that won't be done until October?

Status: Collection account. $2,467 past due as of May 2013.

Status Details: This account is scheduled to continue on record until Aug 2013.

[Booner72]

The collection has to follow the credit reporting timeline of 7 years (and RobertEG will say plus six months to give the CRA's time do remove it). So if it has reported 7 years it should go.

As soon as Aug hits, I would dispute it and say past CRTP.

[CreditJunkie917]

Thanks. That would be huge for me if that were to happen. That would only leave the original TLs to deal with. I would feel much better with that scenario.