Re: Student Loan Rehabilita
tion And The Effect On Tradelines
08-10-2011 01:51 PM
I figured I would share my experience with rehabbed loans, too, in case someone else is in the situation I was. I defaulted through AES in February of 2008. I began rehabilitation in early 2009, and it took nearly 18 months to complete the process and find a buyer for the loan. I have to say, they were NOT easy people to work with. Six months into making timely payments, I hit a financial rough patch and called them to change my due date for the month. The rep on the phone gave me an incorrect email address to submit the request to, so they never got it, and my rehab clock was reset, and I had to start the process all over again. I at least had vindication in that I was able to make them dig up the recorded phone call to prove he gave me incorrect information, but they still refused to work with me in not resetting the process.
Anyway, I finished my rehabilitation in August of 2010, and TU removed the negative tradeline COMPLETELY. However, EX and EQ were still showing the loan as "Assigned to government" or "Claim filed with government" with all of the late payments still showing. This past June, I disputed this info with them, and Equifax has now removed the late payments and the status of the loans shows as "current." Experian, on the other hand, changed the status to "Transferred; closed," and the late payments are still showing up. 2 out of 3 isn't bad, and I'm at least thankful for the status update from EX, but it is still a source of frustration when I see my report. I also didn't get much of a bump, if any, in my score after this was corrected. I may call AES directly and see if they can work with EX, since the other 2 CRAs removed the negative information. Wish me luck if I do--we do not have a friendly relationship! And best of luck to all of you who are in this boat. It's a pain in the butt, but you will be so relieved when it's completed, I assure you!