topic Re: Rehabbed! Sallie Mae / TGSL / AES in Student Loans

Rehabbed! Sallie Mae / TGSL / AES

JBinBigD — Sun, 10 Mar 2013 02:57:19 GMT

My Stafford Loans went into default many years ago and went to the guarantor Texas Guaranteed Student Loans who garnished my wages for serveral years. Finally got smart and signed up for rehab, which completed in December (9 months of $25/month in addition to $400/month wage garnishment).

What will happen to my credit score and trade lines?

The loan was defaulted so long ago it was no longer showing on my CR. All three agencies had no trace of the Guarantor or original lender. Now a company called AES (American Education Services) has picked up the loans and I'm paying $58 per month on the remianing $5500 balance. I'm sure that will appear on my CR very soon. What will be the age of the tradeline? Will it have my history of payments with the guarantor? Good or bad for my credit score?

Thanks

Re: Rehabbed! Sallie Mae / TGSL / AES

SCF — Sun, 10 Mar 2013 07:58:18 GMT

The new tradeline for your rehabilitated loan should be backdated to the start of your original loan, with a good payment history for that time. Overall, it should be a positive for your credit score given that the loans are many years old and it will have a clean payment history. How much of a bump you see depends on how much the account impacts your average age of accounts, and your overall credit file.

Re: Rehabbed! Sallie Mae / TGSL / AES

JBinBigD — Thu, 14 Mar 2013 22:52:13 GMT

Thanks, SCF. I really hope you are right. As soon as it hits my CR I'll post the details here for others curious about this scenario.