Student loan default status will never be removed after rehab!! Please help

sonogirl — Sun, 13 Jan 2008 23:01:55 GMT

So I fought and I fought for almost a year now and AES my student loan servicer refuses to remove the default status or the lates from my CR I filed an official complaint with the DOE and this is the bs letter AES sent me I'm going to post it here maybe someone can make some sense of it.

American Education Services

P.O. Box 2461 • Harrisburg, PA 17105-2461

Toll-free 1-800-233-0557 • TDD 717-720-2354

International 717-720-3100 • Fax 717-720-3916

www.aesSuccess.org

American Education Services

January 3, 2008

SONOGIRL

Dear sonogirl:

This letter is in response to your inquiry concerning your educational loans serviced by our office. We trust this information will be of assistance.

The chart below details your loans.

Loan Number

Disbursement Date

Loan Program

Original Principal Balance

Current Principal Balance

April 10, 2002

Subsidized Stafford

$1,313.00

$0.00*

April 10,2002

Unsubsidized Stafford

$2,000.00

$0.00*

April 10, 2002

Subsidized Stafford

$1,313.00

$0.00**

April 10, 2002

Unsubsidized Stafford

$2,000.00

$0.00**

May 3, 2002

ACCESS+

$2,384.80

$0.00+

March 4, 2003

Unsubsidized Stafford

$2,000.00

$0.00*

March 4, 2003

Subsidized Stafford

$1,312.00

$0.00*

March 4, 2003

Subsidized Stafford

$1,312.00

$0.00**

March 4, 2003

Unsubsidized Stafford

$2,000.00

$0.00**

April 1,2003

Subsidized Stafford

$3,500.00

$0.00*

April 1,2003

Unsubsidized Stafford

$3,560.00

$0.00*

April 1,2003

Subsidized Stafford

$3,500.00

$0.00**

April 1, 2003

Unsubsidized Stafford

$3,560.00

$0.00**

February 28, 2007 February 28, 2007

Subsidized Consolidation Unsubsidized Consolidation

$6,446.04 $8,299.17

$6,531.39++ $8,409.07++

*This loan reflects a balance of zero as a result of a default payment from our guaranty division credited on June 24, 2005.

**This loan reflects a balance of zero as a result of a consolidation payment credited on February 28, 2007.

+ This loan is serviced by our Graduate and Professional Services Department. For additional information regarding the status

of this loan, you may call our office at 800-233-0557 and asked to be transferred to this department.

+ + This loan reflects a higher current principal balance as a result of interest capitalization.

Please note that AES functions in diversified roles as the lender, guarantor, and servicer of student loans. In accordance with the signed application/promissory note agreement, borrowers are responsible for maintaining a current status on their educational loan accounts. Separate tradelines were established on your credit record to represent the servicing history of the loans with our office.

We generally submit unfavorable information to the credit reporting agencies when an account reflects a1 least 60 days of delinquency. Our records verify that as a result of insufficient payment, loans 1 through 6 were at least ou days delinquent from October 2004 until their default in June 2005. As required, we submitted this unfavorable information to the credit reporting agencies.

Page 2

Furthermore, because loans 1 through 6 defaulted, each was reported with a claim-paid status. The servicing tradelines then ceased reporting and our guaranty division established its own tradelines to represent the loans during the default period. After successfully completing a rehabilitation program with our guaranty division, the loans transferred back to our servicing division on February 6, 2007 as loans 8 through 13.

It is important to note that separate tradelines were reported by our servicing and guaranty divisions to represent the progression of the loan history. Following the rehabilitation of loans 1 through 8, our guaranty division submitted a request to the credit agencies at that time to have its defaulted tradelines removed from your credit report. Because loans 8 through 13 were consolidated immediately following rehabilitation, these tradelines may not have had time to report on your credit record. Therefore, only the previous servicing tradelines, including the delinquency and the claim paid status, for loans 1 through 6 should still reflect on your credit report.

The unfavorable information was reported accurately in accordance with the Fair Credit Reporting Act (FCRA). Furthermore, Section 605 of the FCRA stipulates that a creditor may report on a consumer's account no more than seven years from the date the account is charged to profit or loss, whereby the creditor then ceases reporting, and the tradeline is removed from the consumer's report.

As previously mentioned, loans 8 through 13 were consolidated on February 28, 2007 as loan 14. Separate tradelines were established on your credit report to represent each subsidy portion of the Consolidation Loan.

The loan immediately reflected repayment status. Your current repayment schedule entails remitting installments of $141.55 on the 25th of each month. We credited your most recent remittance of $141.55 on December 24, 2007, which satisfied the installment due December 25, 2007. Your next $141.55 payment will be due by January 25, 2008. As a result of your regular, timely payments for loan 14, you may be assured that no unfavorable information has been reported about this loan since its disbursement.

We trust this information is sufficient for your needs. If you have any additional questions, you may call our Customer Service Department at 800-233-0557. Our loan counselors are available Monday through Friday from 7:30 a.m. through 9:00 p.m. Eastern Time to review your account and discuss available repayment options. To access current account information, send email, or download application forms as needed, you may visit our website at www.aesSuccess.org.

Sincerely,

Jennifer Mowery Research Specialist

edited to remove sonogirl's personal info

Message Edited by haulingthescoreup on 01-13-2008 03:01 PM

Re: Student loan default status will never be removed after rehab!! Please help

ShanetheMortgageMan — Sun, 13 Jan 2008 09:55:35 GMT

Sorry I don't know the first thing about getting a SL to have the default status removed after rehab completed, other than I've heard from many other people in your same situation who have successfully removed the default status & any lates after rehab is complete... so I'd say continue fighting. If you haven't already, might want to post this on the general credit section, it'll get more exposure there.

Re: Student loan default status will never be removed after rehab!! Please help

Anonymous — Sun, 13 Jan 2008 21:31:28 GMT

I'm sure you tried, but probably reaching the wrong people. You will need to find new contacts in the lending company higher up. I give up after I am denied by 3 people in any dept and climb a bit higher on the corporate ladder and try 3 more. And so on. Chances are if 3 say no you need to try someone different or go higher.

Re: Student loan default status will never be removed after rehab!! Please help

sonogirl — Sun, 13 Jan 2008 22:58:25 GMT

When I call AES they will not transfer me to anyone except A customer care manager who by the way are useless. I've tried to ask for certain people and they say they are not allowed to transfer me to them unless that person gives them permission What BS

Re: Student loan default status will never be removed after rehab!! Please help

haulingthescoreup — Sun, 13 Jan 2008 23:03:19 GMT

All of my older daughter's SL's are federal loans, except for one from AES. I've just e-mailed her to put that one on the fast track for repayment. Good luck --I hope you knock some sense into them!

Re: Student loan default status will never be removed after rehab!! Please help

MsKmm00 — Mon, 14 Jan 2008 16:26:33 GMT

I went through a student loan rehab program with West Assest and had no problems. If you make the scheduled payments on time for one year, the account(s) are transferred back to the Department of Education and the default/negative information will be removed from your credit report. In addition, once rehab is complete you are able to request deferment. Part of the letter you pasted makes reference to late payments. If any part of your payment was late during your repayment process the negative information will not be removed. Did I read that correctly?

Re: Student loan default status will never be removed after rehab!! Please help

sonogirl — Tue, 15 Jan 2008 23:49:14 GMT

Mskmm00, I was never late during the default rehab program nor have I been late since. They are referencing the lates before the loans defaulted in this letter.

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Student loan default status will never be removed after rehab!! Please help

Re: Student loan default status will never be removed after rehab!! Please help

Re: Student loan default status will never be removed after rehab!! Please help

Re: Student loan default status will never be removed after rehab!! Please help

Re: Student loan default status will never be removed after rehab!! Please help

Re: Student loan default status will never be removed after rehab!! Please help

Re: Student loan default status will never be removed after rehab!! Please help