Re: Student Loan Rehabilita
tion And The Effect On Tradelines
02-10-2013 10:06 AM
Hi MaddMatter70/Kathy4NU... I'm in the rehab proess and I'll share some info based on things I've read on this thread as well as from what GL has told me. So GL currently has my loans and they said I should expect GL to continue as the servicer regardless of who picks them up. I've found GL to be pretty honest brokers...they seem to be good. It appears to me that a good number of people here are having some success with their rehabbed (& CR "refreshed") loans not containig negative information, which is awesome. But sometimes people are having more trouble with getting the original loan(s) that were transferred upon default, updated to no adverse info. Say your loans were originally funded by XYZ bank, and serviced & guaranteed by ABC Co. After you default and ABC purchases the loans from XYZ, on your credit report, the loans labeled anything with XYZ (perhaps now reading transferred/sold/$0 balance) and their negative tradelines, may be trickier to get clean post-rehab. But again, it seems that the CR loan items post-default are the ones people are seeing the most success with. And sometimes these results vary on who the servicer is. I think GL is in charge of the credit reporting if they are the servicer, regardless of who the guarantor is.
I wish everyone on here the best of success. It's a blessing that we have hope to get clean tradelines but of course we're all assessed a significant penalty fee for defaulting. But I suppose that's okay....understandably part of the process. I'm soon to have my last rehab payment and I'll try to post an update or two on what happens.
I am not really worried about the original loan holder as my defaults were so far into default that the original loan has already agend off my account!!! However, DOE has reported my loans for the past 7 years. The odd thing is that they were in default the entire time and the only negative they are showing on my credit report is the past 12 months as being a collection account. No 30, 60, 90 or 120 day lates - just showing as a CO for each month for the past 12 months.
I am going to assume since they are with the DOE that these trade lines will be removed once my loans get picked up. From everything I have read on here it seems DOE removes all their trade lines once rehab is done.
I made my 9th payment 3 weeks early hoping to speed of the process but it didn't. My 7th payment did not post correctly. I was being told it was a glitch and would fix eventually. I was bounced backinforth saying it was the collection agency who needed to fix it and the collection agency said DOE had to fix it. Finally talked to someone who said it would never fix itself that it had to be manually reviewed by the payment resolution department. Payment Resolution has the confimation authorization for the collection agency and said that should be all they need but to send in copies of my bank statements too. I did that last week and they confrimed on Friday that they have received them. They said to give it another week to be inputed correctly.
I was also told they are only reviewing loans to be picked up every 30 days now and they have no explanation of who gets picked up and who doesn't. I am just keeping my fingers crossed that my loan gets picked up on the next round of reviews!
June '12: EQ 553 TU 0 EX 545
April '13 Lender Pull EQ 731, EX 692, TU 722 - all FICO
Closed on home May 22, 2013 at 2:00pm!!!
CU Visa $1000, VS $350, Chase Freedom $1000, Discover IT $2500, Home Depot: $2700, Menards $3000, NFM $3500
What's been deleted: 32 collections, 5 PR, 2 tax liens, defaulted student loans