08-01-2012 11:15 AM
I am currently rehabbing with Windham Professionals. I am 7 months into it and going good.
My question is, what can I expect in the way of score change, TR deletions ect. on my CR? I currently have 7 TR's from Nelnet all showing $0 balance, some showing up as Pays as Agreed and some showing up as 120+ all with a status of claim filed with governmnet. I also have 1 TR from Colorado Student Loans (I am assuming this was my consolodation) for my total $22,848 in loans showing as a Collection Account.
So....once I make my 9th payment and the loan is sold, what do you guys think will happen on my CR? Will the Nelnet lines go away? If they don't will the lates be cleared? Will the Colorado Student loan TR show current and will my lates go away on this TR?
Any info you guys can provide will be appreciated!! Thanks in advance!!!!!!!!
08-02-2012 06:47 AM
I have no idea...but there are several of us right at that 7 month mark. We could be a club. August & Sept will mark payments #8 and #9 for me.
It would be interesting to see the differences once the rehab results start happening.
08-02-2012 08:15 AM - edited 08-02-2012 11:33 AM
There's a very long thread on "Student Loan Rehabilitation and the Effect on Tradelines." I've read through the entire thing. It's actually pretty interesting, but does go to show you that everyone's situation will be different.
Some people's loans are purchased right away and they begin on a new loan immediately.
Others take a few months to get purchased. Some of those end up paying the Collection Co for a few more months, some don't.
Then there's different situations. For me, I started with Sallie Mae, who closed my accounts two years ago. I will likely have those lates forever.
Because they were sent to my loan guarantor, USA Funds. They are now reporting on those loans. This is the tradeline that will either get deleted, or all lates removed and paid as agreed. I hope!!! I am paying a collection agency, Allied Interstate, to rehab my loans. Allied Interstate is nowhere on my credit report. USA Funds is updating my loan amount each month as it gets smaller.
I'm at payment 7/month 6 right now. I know what a rough, bumpy, and scary ride this can be. Just hang in there. No matter what happens, it's going to get much better from here!! Best of luck, and check in with us often!
08-02-2012 08:21 AM
My rehab was through a different agency even though I have Nelnet loans. Here is what has been my experience so far:
June 29th -- Made 9th rehab payment
July 13th -- Loan returned to Nelnet
July 27th -- Loan officially released from collection agency
I pulled all 3 bureaus from USAA CMS today. Collection is GONE from EX and EQ! Still showing on TU, though :-(
Nelnet reports to the CRAs on the 16th of the month. Their tradeline hasn't been updated as of yet. I'll check back in a few weeks.
Congrats for working your way through rehab. Keep up the good work!
08-04-2012 09:42 AM - last edited on 08-04-2012 11:16 AM by llecs
Once you successfully complete the rehabilitation process, your loans at Nelnet would change from "defaulted" to "transferred.' Edited
09-07-2012 10:20 PM
Im in the same boat as apandabear, my student loan also started with Sallie Mae which then got sent to USA Funds and i actually made my 9th/last rehab payment to Allied Interstate Aug. 20th. In July I called Allied Interstate to see if i could make my 9th payment earlier to speed up the process which they only moved it up a couples day because a policy they have. They also sent me some papers i had to sign and return certified mail early that way when they received the last payment they could get the ball rolling to get the loans out of default. Lady at Allied said they would be out of default by Sept. 6 which was yesterday. So im waiting till the end of Sept. to see if any changes have been made to my Credit Report.
09-08-2012 03:04 PM
I'm about to start rehab, mine also is from sallie to USA now to the collection agent. That's three hands i called sallie they told me my loans was paid from USA .now isn't this private and after the CA called me it jumped on my report the next day saying USA funds. They both are on my credit report hurting me, my scores dropped another 28 points. Is this process wrong or illegal! My original loan amount was $3900 in 1999 now it's at $8700.no one have spoke to me about how much to pay and where to send
09-08-2012 09:32 PM - edited 09-08-2012 09:37 PM
Its not illegal, the loan developed interest w/ penalties. My loan also accured interest and penalites which started at $10,000 and is now up to $18,000. Also, if you know what collection agency has the loan then you should contact them about starting the rehab process. My CA was Allied Interstate, which they asked me if i could pay 50% of the loan, which i couldn't, dont have that type of coin lying around. Worked out payment arrangements and they were pretty easy to work with as they set up payments that would automatically withdraw from my account.
09-09-2012 10:24 AM
Also, as a benefit of rehabbing, a lot of those penalties will fall off.
For example, I had $21k in student loans before default. That skyrocketed to $28k. Once rehab is done, the penalties will reduce to like 18% or something, which brings my owed amount down to like $25k-ish. You should get the specific terms in the rehab paperwork they send you. Read it carefully!
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.