Very confused about current defaulted loans - seeking help

[Anonymous]

I am in the process of cleaning up my credit and debt - and been very successful in terms of current collections and charged off's.

Now I would like to tackle my defaulted student loans but I am very confused on how this is all being reported.  Currently my credit report has 3 TL's for my direct student loan, which are all reporting a $0 balance:

1) US Department of Education 

Status: Collection account/Placed for collections

Closed: 2009

2) FedLoan Servicing

Status: Permanetly Assigned to Government

Closed: 2015

2) FedLoan Servicing

Status: Permanetly Assigned to Government

Closed: 2015

I logged into www.nslds.ed.gov to verify who is my current servicer, which is https://myeddebt.ed.gov/ ... NOT fedloan servicing.  MyEDDEBT isnt reporting either.

I contacted the debt resolution group and they confirmed I am eligible for rehab and will be sending me a form in the mail to fill out and start the process.

Here are my question:

• If I complete rehab with MYEDDEBT, will it remove the FedLoan Servicing TL's or atleast clean them up? Idk if there is any relationship between FedLoan servicing and MYEDDEBT. 

This is all very confusing and I want to make sure I approach this the right way.  The point of rehab is to get the default / TL's cleaned up and/or removed from my credit report but its currently a mess and I am not sure what the outcome would be.

EDIT:  After thinking outloud I THINK this is how it will play out.  PLEASE correct me if I am wrong.  After my loan was sent to collections, fedloan servicing started servicing it.  Then it was assigned to government so it went back to US DEPT.  If I complete rehab with MYEDDEBT, it will be picked back up from FEDLOAN servicing and clean up the TL's that are currently on my report.  Is this assumtion correct?

[Anonymous]

---

@Anonymous wrote:

I am in the process of cleaning up my credit and debt - and been very successful in terms of current collections and charged off's.

Now I would like to tackle my defaulted student loans but I am very confused on how this is all being reported.  Currently my credit report has 3 TL's for my direct student loan, which are all reporting a $0 balance:

1) US Department of Education 

Status: Collection account/Placed for collections

Closed: 2009

2) FedLoan Servicing

Status: Permanetly Assigned to Government

Closed: 2015

2) FedLoan Servicing

Status: Permanetly Assigned to Government

Closed: 2015

I logged into www.nslds.ed.gov to verify who is my current servicer, which is https://myeddebt.ed.gov/ ... NOT fedloan servicing.  MyEDDEBT isnt reporting either.

I contacted the debt resolution group and they confirmed I am eligible for rehab and will be sending me a form in the mail to fill out and start the process.

Here are my question:

• If I complete rehab with MYEDDEBT, will it remove the FedLoan Servicing TL's or atleast clean them up? Idk if there is any relationship between FedLoan servicing and MYEDDEBT. 

This is all very confusing and I want to make sure I approach this the right way.  The point of rehab is to get the default / TL's cleaned up and/or removed from my credit report but its currently a mess and I am not sure what the outcome would be.

EDIT:  After thinking outloud I THINK this is how it will play out.  PLEASE correct me if I am wrong.  After my loan was sent to collections, fedloan servicing started servicing it.  Then it was assigned to government so it went back to US DEPT.  If I complete rehab with MYEDDEBT, it will be picked back up from FEDLOAN servicing and clean up the TL's that are currently on my report.  Is this assumtion correct?

---

Your account was transferred prior to the servicer is at now, and for whatever reason, the current servicer hasn't reported it. It's a mess in your eyes, but it is an accurate reflection of what happens with a defaulted student loan. Rehabbing will remove US Dept of Education collect account and any verbiage referencing a default. All student loans done through direct loan servicing were transferred to other lenders. Mine went to Nelnet, yours went to Fedloan Servicing. 

MyEdDebt is the US Department of Educations default resolution group. If you log into your account there, it will tell you which servicer you can complete rehab with, which is likely Fedloan. 

Without seeing your NSLDS I wouldn't be able to tell you why there are 2 tradelines showing for Fedloans. I would assume you had more than one loan. You may have one for each semester you attended school. It just depends on the direct loans you received originally. You don't need to sign a new MP note for each loan, only for each school year you receive direct loans.

Please note that only the defaulted status and collection account will be removed, the lates leading up to the default will remain.

[Anonymous]

Thank you for the reply.

You are correct, NSLDS shows the two loans taken out, which match the balance shown on the myeddebt site.

Also,  MYEDDEBT website says current servicer is EOS CCA.  However, after calling the resolution group, they said they will be recalling the loan from EOS CCA...  I am waiting for a letter in the mail regarding rehab.  The letter I receive might have more information on it.  There was no mention of Fedloan during the phone call.

[Anonymous]

---

@Anonymous wrote:

Thank you for the reply.

You are correct, NSLDS shows the two loans taken out, which match the balance shown on the myeddebt site.

Also,  MYEDDEBT website says current servicer is EOS CCA.  However, after calling the resolution group, they said they will be recalling the loan from EOS CCA...  I am waiting for a letter in the mail regarding rehab.  The letter I receive might have more information on it.  There was no mention of Fedloan during the phone call.

---

I would just wait then. You should be able to do the rehab directly with your payments through the myeddebt website.

[Anonymous]

Thanks again for your help. Last question for you.

What are the possibilities the Fedloan TLs will be effected after rehab?

From my understanding, the loan will be transferred to a servicer after rehab. If Fedloan picks it back up, would there be new TLs added to my report or would it backdate the current TLs being reported?

[Anonymous]

---

@Anonymous wrote:
Thanks again for your help. Last question for you.

What are the possibilities the Fedloan TLs will be effected after rehab?

From my understanding, the loan will be transferred to a servicer after rehab. If Fedloan picks it back up, would there be new TLs added to my report or would it backdate the current TLs being reported?

---

That would be a question for the default resolution group.

The only thing I know for certain is that any record of default (charge off remarks, collection accounts) is removed from your credit report, but the lates remain.

I believe the purpose is to bring your loans back into a good standing, so I believe they would reopen the same accounts, but I don't know that.