cancel
Showing results for 
Search instead for 
Did you mean: 

student loan settlement vs student loan rehab program.

New Visitor

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
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.
11/2017: EX 704 | TU 720 | EQ 672 -- Starting (2/2016): 630 | 620 | 580 -- INQs: 17 | 26 | 28 (last 6 months: 5 | 2 | 6)
AMEX Delta: $10k, Marvel: $8k, Discover IT: $7.2k, AMEX BCE: $6k, Target MC: $5k, PayPal 2%: $8k, CO QS: $2.6k, Merrick: $1.6k, Barclay's NFL Rewards: $1k, CO BuyPower: $500. And a mix of well-loved store cards.
Message 2 of 7
New Visitor

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

Student Loan Debt Expert
Message 3 of 7
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
Regular Contributor

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
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
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 


Starting Score: Eq: 662 Tu: 532 (03/02/2011) CH7BK 01/12/2009 Discharge
Current Score: Eq: 712 (02/03/2017) Tu: 717 (04/03/2013)
Goal Score: Eq: 760 Tu: 760

Wallet: PenFed Power Cash 25k | AMEX Blue Cash (AU) 49.5k | Cap One QSMC 26.5k | AMEX Platinum NPSL | LFCU Visa 10k
Message 7 of 7