cancel
Showing results for 
Search instead for 
Did you mean: 

student loan settlement vs student loan rehab program.

tag
Anonymous
Not applicable

student loan settlement vs student loan rehab program.

I have defaulted student loans at about 3000, and was wondering if taking a settlement offer would be more beneficial to my credit score then the rehabilitation program?

any advise?  

Message 1 of 7
6 REPLIES 6
MrsCHX
Valued Contributor

Re: student loan settlement vs student loan rehab program.

Rehab will remove the derogatory info right?

If so I think it makes more sense to rehab and pay. Says the lady with $56k in SL. I'm quite jealous of your $3k! But I understand when a hardship is a hardship no matter the cost.
NFCU: $25,000; PenFed Power Cash Rewards: $3,500; PenFed Gold: $2,500; Capital One: $2,300; Nordstrom Visa: $2,000; Credit One: $1,250
Amazon: 800; Kohls: $1,500
Message 2 of 7
Anonymous
Not applicable

Re: student loan settlement vs student loan rehab program.

I would have to agree, rehab sounds like a better option for you since the amount is only $3000

Message 3 of 7
Involver
Valued Contributor

Re: student loan settlement vs student loan rehab program.

Rehabilitation is the way to go if you want to minimize the damage to your score.  If you settle you'll just get another negative tradeline.  Rehabbing will give you a new, positive tradeline dating back to the inception of the loan date.

Message 4 of 7
Anonymous
Not applicable

Re: student loan settlement vs student loan rehab program.

rehab.  Im doing rehab for 4k in SL and just enrolled today.  My account rep also went over the fact that it will fix your credit.  im only paying 50.00 per month during rehab

Message 5 of 7
HigherFico
Regular Contributor

Re: student loan settlement vs student loan rehab program.

How can I get my student loans rehabbed? 120 days past due already.

Starting Score: 520
Current Score: 627
Goal Score: 700


Take the FICO Fitness Challenge

Message 6 of 7
Tazman81
Established Contributor

Re: student loan settlement vs student loan rehab program.


@HigherFico wrote:
How can I get my student loans rehabbed? 120 days past due already.

Here is the info on student loan rehab.

http://www.finaid.org/loans/rehabilitation.phtml 


Current Score: Eq: 823 Tu: 830
Goal Score: Eq: 850 Tu: 850

Wallet: PenFed Power Cash 50k | AMEX Blue Cash (AU) 49.5k | Cap One QSMC 26.5k | AMEX Platinum NPSL | USAA Signature Visa 25k
Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.