Yes, I believe that is what most creditors fall back on.   However the FCRA doesn't mandate that reporting is required....it only states that reported information must be accurate.

I'm wondering how then DoE / Direct Loan rehabilitation is actually skirting this then where they are actually removing past late remarks on their tradeline after rehabilitation is completed. Is this a case where the Feds are using a "Do as we say, not as we do" policy?

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bahbahd wrote:

I'm wondering how then DoE / Direct Loan rehabilitation is actually skirting this then where they are actually removing past late remarks on their tradeline after rehabilitation is completed. Is this a case where the Feds are using a "Do as we say, not as we do" policy?

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That's a good question.   I suspect that you are probably right in your reasoning,,,,it's ok for them to remove late pays when they feel like it  

They started rehabbing these loans as an incentive to get more people to pay. Budget cuts within the.Dept of.education meant that the government didn't have enough capital to cover existing defaulted loans as well as issue loans for new students. Just think about the mess we would be in if no one ever paid. Our kids would pay the price by not even getting the opportunity to even go to college.

I fully understand why they are doing it. This just leaves me wishing I would have let my loans default two years ago and rehabbed them myself vs doing the right thing and paying them to begin with, struggling to pay them actually, when Nelnet would not grant forbearance any longer.

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bahbahd wrote:

I fully understand why they are doing it. This just leaves me wishing I would have let my loans default two years ago and rehabbed them myself vs doing the right thing and paying them to begin with, struggling to pay them actually, when Nelnet would not grant forbearance any longer.

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I totally agree...  sometimes its tough to sit back and realize that you are punished for actually doing well and doing the right thing in life...

 

For example:  People who purposely work part - time and cut back on the amount of hours they work to receive public assistance

People who don't marry their partner, so that they can receive public assistance

Having to pay taxes, rather than receiving a 6k refund every year because you actually finished college and got a good job

Having to take out unsubsidized student loans even though the government assumes that your family will actually help you pay for school... When in reality, they will not and do not.
Being able to draw 50% of your spouses Social Security amount despite not working a day in your life

 

There are numerous examples of how our system is not fair for those of us who work hard to succeed....  However, I'm glad we don't live in a country that lets our poor children and single mothers starve to death, allow our elderly to become sick and homeless, or limits educational opportunities to only the rich. As much as I complain about the system, I'm glad we aren't like other countries. You really aren't going to get any pat on the back for doing the right thing and paying back your loans, the only pat on the back  you'll get will come later in life when your kids need student loans, and they are able to get them because of all of the people who did the right thing.

 

Obviously this is just my opinion, please take with a grain of salt if you disagree...  I can see both sides of this story because I've been on both sides of this story.

 

 

Texas Guaranteed also removes past late remarks after 9 months successful rehab. So i dont think its an issue of " I can't". More likely "I won't"

This is interesting news. I think Texas Guaranteed is the guarantor of my undergraduate loans while Nelnet is just services them. I never thought about contacting the guarantor. What role does TG provide for you?

 

Edit: I saw that you said rehab. Yes, I believe it is standard practice for lates to be removed once rehab is completed. Either back to date of default or entirely off of the tradeline.  My question was more around removal of lates for someone who does not rehab.

bahbahd wrote: My question was more around removal of lates for someone who does not rehab.

I WOULD LIKE TO HEAR MORE ON THIS SAME QUESTION...