I was in default on three student loans 18 months ago. I got caught up and gave been current ever since. No one from sm told me about the rehab program. I now have 4 120 lates on 3 different sm loans. Am i just SOL? Am i stuck for the next 5 years with these on my credit? Should i just default again and go into rehab so the negatives cone of sooner? i shouldn't be dumbfounded about this, it is the government after all, but i am.
Sallie Mae is really inconsistent with removing negative tradelines after rehab. They will remove the collection accounts really quickly, but are not setup to automatically delete the entire defaulted tradeline. There basically has to be a reason, where they did something wrong, for them to delete and even then it is shaky.
By the time you got yourself into default again (which could take up to a year right now because they are trying to keep defaults off the books, it took 415 days for them to put me in default) and then went through rehab (9 months plus waiting for the loan to be sold = weeks to months) you would have 3 years or less of these being on your report. If you are one of the lucky few who got their tradeline deleted it would be worth it, otherwise you have given yourself a lot more lates.
Starting Score: 12/19/12 - USAA EXP 564 EQU 564 TU 568 MyFico 612 Current Score: 5/21/13 - USAA EXP 679 EQU 659 TU 677 MyFico EQ 667 Goal Score: 720