Established Contributor
FicoTron
Posts: 512
Registered: ‎01-27-2011
Re: Student Loan Rehabilitation And The Effect On Tradelines

tburns, they are going to garnish your federal until you satisfy the rehab.  I just made my last payment on 6/7 and called NCO, the firm I did the rehab with.  They are now forwarding the proof of my 9 consecutive payments to the US Dept Of Ed and by the week of 7/7  I can start calling the Treasury Dept to see if I am still on their list of loan defaults.  As soon as I come off that list, I can file my 2010 taxes (for which I applied for a 6 month extension).  Then the long awaited effect on my reports occurs, and I hope its really big.

 

Also, all of my payments went toward interest and fees, which is why anyone looking to rehab should negotiate the lowest payment they can, even if you have to throw a little BS in there.  Before you speak and negotiate a number, take a pen and paper, assume you make $300 a week and break down your bills so it looks like you have little extra cash flow.  This may seem shady, but when you finish making your payments, the interest and penalties are removed anyway, so it is just money pissed to the wind.  Nine payments is nine payments, period.

 

There are six negative "collections" tradelines on my reports, it is supposed to all consolidate into one that should say should have an age of 15 years.  Hopefully this is all true, I just wish we could get someone to reply with some solid facts.  Looks like I'll have to be that someone, I'm only about 45 days away from it happening.

EX-774 (Amex Fico) 8/12
EQ-725 (Fico) 1/12
TU-729 (Fico) 3/12