topic Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end. in Rebuilding Your Credit

Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

Anonymous — Thu, 15 Jan 2009 07:42:26 GMT

New member here and first post but i have been glued to the site for the last 2 hours, and I am sure thats just the begining. Im going to be hooked.

So going on two years ago i had a student loan in collections so i desided to pay everything off. I called the lender to see what i could do and my options. The lender was KHEAA's at that point i had the money to pay everything in full with my tax refund but i was informed not to do that because it would remain on my CF. Instead was told if i made 9 solid months of payments they would rehab my loan to look as if it was never late. I thought to myself this dosnt make sence because i wanted to pay the whole thing off at once but whatever it sounded like a better deal.So i make a large payment and set it up to where i only make $50 payments for the next 8 payments and set on auto draft to ensure i didnt forget. Well 9 later i make the last payment and at this time I am anxious to see a change in my score. BUT they tell me OH we cant do that you were supposed to continue to make payments after the 9 months and those payments would report in good standings. So i was not a happy person at this time and spoke to manager after manager and still no one wants to hold up their part of the deal. I agree that its my fault in the first place but why bother telling me all this when i was content with just paying to 0 9 months prior and forgeting about it. So my credit report today 2 years later is still showing Paid Collections and the worse part is since it was for 3 semesters of school i have 3 CA showing for what i would figure to be 1 account total. But the real question i have is HOW do i get this removed? I am looking to purchase a home ASAP. I have a total of 5 CA on file 3 from KHEAA's 1 Paid Medical and 1 account i owe $1000 on but plan to send them a PFD and i plan to have the Medical removed because its against the HIPPA laws to still report. Thanks in advance for everyone knowlege

Message Edited by Mooseknuckle3835 on 01-14-2009 11:42 PM

Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

Anonymous — Thu, 15 Jan 2009 13:11:02 GMT

Unless you got something in writing, I don't see many options other than sending GW letter to the CA. It is your word against theirs.

What is the DOFD? This is the date the account went delinquent and wasn't caught up prior to charge off/collection.

Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

LynnInMN — Thu, 15 Jan 2009 13:47:04 GMT

Student loans are different from other debts. No PFD, no GW and you cannot go whining to the OC when assigned to a CA., He was attempting rehab and didnt complete it. The rules are rules......OP should have called the CA when the 9th payment was made to find out what happened next.

Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

Anonymous — Thu, 15 Jan 2009 14:40:33 GMT

@LynnInMN wrote:
Student loans are different from other debts. No PFD, no GW and you cannot go whining to the OC when assigned to a CA., He was attempting rehab and didnt complete it. The rules are rules......OP should have called the CA when the 9th payment was made to find out what happened next.

While I don't doubt that giving GW is not the norm, enough people (including myself -- rather, my DH) have received GW adjustments that saying "no GWs" is a bit too generalized.

I've done a LOT of government contract work over the years (over 20) to know that even if something goes against the "rules" if you bring in higher firepower (in this case, perhaps the DoE --obviously if Federal SL -- or perhaps a REALLY good lawyer), that stuff can get done.

In the case of SLs, I can only assume that when you cut right down to the basics, the servicers, CA, etc, act as "contractors" to the government. Contractors are not the end-all-be-all. They're hired by the gubmint and the gubmint is in charge. While the gubmint has a nasty rep for being inflexible (which I think is true, more often than not), the *right* person IN the gubmint can make a contractor do whatever the heck they want.

There's been many, many, many a time when a contractor was p*ssing me off that I went directly to their gubmint counterpart/Program Manager (and if it's gubmint funded or acquired, they have some sort of PM), and got the contractor spanked.

Rules, notwithstanding, exceptions occur. That's just the way things are when you're dealing with people.

Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

Anonymous — Thu, 15 Jan 2009 15:04:07 GMT

@Anonymous wrote:
Unless you got something in writing, I don't see many options other than sending GW letter to the CA. It is your word against theirs.

What is the DOFD? This is the date the account went delinquent and wasn't caught up prior to charge off/collection.

The DOFD im not sure because the OC KHEAA's has removed all their fillings and the CA aka Student Loan People still showed Paid collections. Even thought i help up every part of the Rehab that was explained to me. If i had known I still needed atleast a $500 balance remaining after 9 months I wouldnt have asked the lady how much do i need to make a month to wipe out this balance. The correct answer from her would have been something like, Sir you need to make only payments large enuf to ensure you have a $500 balance and the end of the 9 months. So my delima is im still being punished for trying to do things correclty and did everything JUST as they told me to in order to rehab. I mean they even looked into the notes and declaired to me yes i see where you were told that but without the 500 their is nothing we can do!!!

Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

Anonymous — Thu, 15 Jan 2009 15:14:40 GMT

I mean really im not asking for much just exactly what you would have done IF i had $500 left owed and you sold to another creditor. I work for T-Mobile and if Customer Care tells you anything and its noted in the account memo's then regardless of what you were promissed they honnor that. Not say, im sorry after being misinformed you completed 100% repayment but since we failed to tell you to keep a 500 dollar balance its just not your lucky day nor the next seven years while we continue to report this.

Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

OaimeeO — Thu, 15 Jan 2009 16:41:51 GMT

I feel for you. I was going through a similiar situation, but fortunately for me I pulled my CR's 2 months before the payments were finalized and called USDE and asked why they were still reporting collection account, 120+days past due. They said because I wasn't in a 'rehab' program, I was actually paying a third party ca, but since I had made over 12 consecutive payments that they would still qualify me for the rehab for the last 2 payments. As long as those are made on time I can get my report fixed. Hopefully they don't lie to me like they did to you.

Here is my post to a similar thread like yours, in the SL forums:

Newbie here but I had issues on my Student loans also and they were sent off to collection dept of USDE. Just make sure you don't pay a secondary CA if you end up paying on these loans, as I did. I was told I would no longer qualify for Financial Aid because of the defaulted loan, unless I started making payment arrangements on it. I called USDE and they said that Regional Adjustment Bureau had purchased my loan so I had to pay through them. I did so, and thankfully have 2 payments left because when I printed out my new report it STILL said collection account, charged off, late 120+ days even though I had made proper payments for over 12 months and had my hold lifted from Financial Aid. I would be pretty mad if I finished paying through the CA because when I contacted USDE again they said I should have been offered the 'Rehab' program to fix my credit report in the first place, not sent to the CA. The CA will NOT fix your credit report.

Just thought I'd pass that info on in case you had no other options.

Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

Anonymous — Thu, 15 Jan 2009 16:49:40 GMT

GREAT NEWS!!! As for the Paid Medical and the one other CA for $1000 dollars they were both listed to the same CA "Collection Management SR" on my report. I have been paying on this account for 2 years as well and had a electronic payment so i was sure never to be late again not that it mattered because they never reported monthly payments. But i simply called them and asked about the HIPPA laws and they were clueless and asked for a fax on it so i was ok with that because he didnt just say i was crazy and NO. So next i mentioned my other account for the $1000 and asked about a PFD and he was like YES we can do that. At this point i was real excited and to make things better he said you know what if you are serious about doing this i will take your word on the HIPPA thing and go ahead and delete both accounts you have with us. Im sure most of you know the joy something like this brings especially when it comes that easy and you have been living with the issue for years. I explained to the guy that if i had only known of the PFD i would have done this years ago when i origianlly made the payment arangments. And he answered its something they are not allowed by the goverment to offer but all you have to do is ask. Kinda like joing the masonic lodge they cant ask you to join but once you ask you able to start the process. wierd how things have the little gray areas and fine lines between rules. But thanks to everyone on this site for your help so far now the only thing i have left are those darn student loans. And as for those i spoke with a rep today and it has been forwarded up to her manager for review. maybe it will be a good day

Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

Anonymous — Thu, 15 Jan 2009 17:11:34 GMT

Do you know about when you went delinquent on the loans?

After hearing back from the manager, I would send some GW letters to see what you can get there.

Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

Anonymous — Thu, 15 Jan 2009 17:14:26 GMT

@Anonymous wrote:
Do you know about when you went delinquent on the loans?

After hearing back from the manager, I would send some GW letters to see what you can get there.

Looks like from my report 05/2003 I am deff going to try the GW letters if i cant get anywhere with this manager now the only question is to Whom to send the GW addressed to.

Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

Anonymous — Thu, 15 Jan 2009 18:56:37 GMT

With regard to your student loans, you might try contacting the Office of the Ombudsmen with the U.S. Department of Education. They may be able to help you.

Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

Anonymous — Thu, 15 Jan 2009 19:11:54 GMT

I totally agree with you, Wonderin! The difficulty of the situation does not mean that it's an impossibility.

In addition to contacting the DoE Ombdudsmen, another option is to contact the Director of the Guaranty Agency that last held the loan, and to work with him/her directly. Getting to him or her may take some work, but contacting the state Attorney General may be fruitful. If not there (but, more than likely, they'll cough up the name and a phone number), contact the State Treasury Department to get that contact information.

At any rate, there are almost always options and avenues to try. Giving up, just because it's difficult or 'not likely', or because everyone else did only guarantees that nothing is going to change.

Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

Anonymous — Thu, 15 Jan 2009 19:58:19 GMT

Ok, this is a CA reporting, right?

If so, as far as the rehab goes, that is hogwash. A CA is not allowed to report you late and even if they don't/do, it doesn't affect your score because you are getting dinged for the collection, which is worse than the lates.

So, I would send the GW letter to a higher up at the CA(google, the BBB, and SoS is great places to get names/address) and explain the situation.

Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

LynnInMN — Thu, 15 Jan 2009 20:13:10 GMT

CA's dont report for student loans....the guarantor does. And if he did not meet the guidlines for rehabbing, it aint going to happen....the loan will not be reinsured.

Re: Help credit guru's!!! I was told my student loans would be rehabed but didnt hold their end.

Anonymous — Fri, 16 Jan 2009 02:55:45 GMT

Well looks like everything is going to work out just after all. After several hours on the phone today I finally got someone who was willing to help. And they are going to honnor the fact that i was misinformed and make it right. The lady i spoke to was very helpful and remembers my account for a year ago when the issue first came up. She informed to to go to the CRA and dispute the Collection accounts and the will be removed totally. Again more great news as long as everthing is handeled correctly and Ex, TU, ans Eq do their half too.