topic Re: Student Loan Rehabilitation And The Effect On Tradelines in Student Loans

Student Loan Rehabilitation And The Effect On Tradelines

FicoTron — Fri, 22 Apr 2011 23:40:27 GMT

I am seeking others who have finished their student loan rehab to see what effects it had on the tradelines on their credit reports. My loan is with the US Department of Education. I am rehabbing it via NCO. When I fulfill the obligation of rehab I want to know weather or not the late payments are still going to show on my report. NCO claims that all negative info will be removed and shown as current. I have scoured the internet and have gotten mixed reviews as to if this is true. Most other people have loans through secondary lenders, and these secondary lenders don't remove the bad tradelines as they should. I am looking for someone who ONLY had their loan through Direct Loans/US Department Of Education to see what the final outcome was on their report after rehab...any help is greatly appreciated.

Re: Student Loan Rehabilitation And The Effect On Tradelines

FicoTron — Mon, 25 Apr 2011 15:14:02 GMT

bump

Re: Student Loan Rehabilitation And The Effect On Tradelines

pritchardhallhokie — Mon, 25 Apr 2011 17:18:26 GMT

Hey Man,

Well, I hope I can pay the karma forward to you.

I have a loan through Direct Loans. Back a couple of years ago, I let it get waaaay out of hand it was around 120 days past due. I called DL and set up a rehab program (they really are about the most helpful people in the world). I was told that if I make either 9 or 10, I think 10 months worth of payments, that they would rehab the loan and the TLs would be deleted that showed the lates.

Fast forward a year and some change and I had paid the 10 months. Within a month's time, automatically, the negative tradelines disappeared. I literally had a ton of marks on my CR because of DL and now all it shows is positive tradelines. I hope you experience the same thing, but again, I have my loan through Direct Loans.

Re: Student Loan Rehabilitation And The Effect On Tradelines

FicoTron — Tue, 26 Apr 2011 02:58:30 GMT

thanks for sharing that. My loans were actually through Direct Loans, but I am pretty sure it is the Dept Of Ed that runs Direct Loans, so this seems like a bit of good news. I still would like to keep this thread open however if there are any others out there that can share their rehab experience...

Re: Student Loan Rehabilitation And The Effect On Tradelines

FicoTron — Tue, 17 May 2011 19:08:04 GMT

one more payment left till the end of rehab. Still, just checking if anyone else has any info on their rehabbed loans...

Re: Student Loan Rehabilitation And The Effect On Tradelines

Anonymous — Tue, 17 May 2011 19:43:29 GMT

I look forward to hearing from you once it is all said and done.

I just completed the process in May, since my loans were not direct loans the information from the original lender was not deleted. The default loan was reporting as in collection, it has been removed from my EQ report and I saw a 43 points increase.

Re: Student Loan Rehabilitation And The Effect On Tradelines

Anonymous — Thu, 19 May 2011 03:52:03 GMT

I'm curious as to how my SL's will show on my CR once the rehab is complete also.

But mine is a bit different then most I've read here.

I defaulted 12 years ago, They fell off my report completely and for the last year that I've been checking no sign of them on any report. I made my 7th payment on the 15 of this month. Always on time. Loans are through Direct Loans.

I'm not sure how they will be marked once complete. If they will be listed as new loans or re-listed from the original 1999 date. I would love if they had the original date as my AAoA's is now 5 month lol. But I guess I'll see in July/August

Re: Student Loan Rehabilitation And The Effect On Tradelines

FicoTron — Sat, 21 May 2011 00:13:56 GMT

tburns, that is a weird situation, I'm wondering why they ever fell off of your report in the first place, they aren't supposed to. The only thing you can hope for is is they put the original starting date of the loan, that would help, otherwise, it isn't hurting you now.

On another note, I'm glad people are noticing this thread, hopefully we can get a record of a lot of rehabbers so people in the dark can get an idea of what they have in store for them, no matter what the loan type...keep the replies coming.

Re: Student Loan Rehabilitation And The Effect On Tradelines

FicoTron — Sun, 05 Jun 2011 23:46:00 GMT

June 7 marks my 9th consecutive payment in my rehab process...I am really interested to see what happens to my scores. Right now I am at Eq 636, Ex 634, Tu 592...I was hoping to see other people post their experiences here, but it looks like its just me...hopefully I can help. If anyone has anything to add, please do so. I can't believe I am the only one searching for info about this...

Re: Student Loan Rehabilitation And The Effect On Tradelines

Anonymous — Thu, 23 Jun 2011 19:13:33 GMT

I'm in the same boat as you. My SLs have fallen off my reports and although I am currently getting garnished and in rehab they aren't hurting me. I do look forward to getting rehab completed (just made payement 6) but like you I am curious to see how they will report once I am done.

Re: Student Loan Rehabilitation And The Effect On Tradelines

Anonymous — Fri, 24 Jun 2011 01:00:33 GMT

Well I'll let you know what happens.

Was hoping someone would have been through this to get an idea but guess we're not in that common of a situation.

My 9th payment is July 15th so hopefully I can find out then.

I'm not being garnished since I started my rehab and was self employed before moving to Colorado. I initiated the rehab once I started working here. At the time they didn't even know what state I was in. However my Federal returned was garnished even though I was 4 months into the rehab at the time. State wasn't touched.

One thing I don't like is how 95% of all my payments are towards interest and fees. I'm in an agreement that my fees would drop off and my interest would be reduced once rehab is complete. But if I was responsible 12 years ago I wouldn't be in this situation.

Hopefully I can have a deducible on these payments since it's nearly all interest next years return.

Re: Student Loan Rehabilitation And The Effect On Tradelines

Anonymous — Sun, 26 Jun 2011 04:12:36 GMT

hey just wondering how you got your loans into rehab? Mine are currently being garnished out of my wages, i owe approx 10K in student loans. I'd love to do this loan rehab especailly now that i have a great job and extra income! i screwed up my credit pretty badly and my husband will be getting out of the military next year and we need to buy a house but my FICO score is LOW LOW LOW mostly due to these darn student loans i screwed up on. Any advice? thanks!

Re: Student Loan Rehabilitation And The Effect On Tradelines

Anonymous — Sun, 26 Jun 2011 15:30:38 GMT

Just call them company that has your loans up and tell them you want to rehab the loans. They will give you a figure that you will have to pay (in addition) to your garnishment amount., probably around 100 for you...although I may be off. Your garnishment will not stop until your 9 payments are finished (in some cases 10) and your loans are picked up.

Re: Student Loan Rehabilitation And The Effect On Tradelines

FicoTron — Mon, 27 Jun 2011 18:15:08 GMT

tburns, they are going to garnish your federal until you satisfy the rehab. I just made my last payment on 6/7 and called NCO, the firm I did the rehab with. They are now forwarding the proof of my 9 consecutive payments to the US Dept Of Ed and by the week of 7/7 I can start calling the Treasury Dept to see if I am still on their list of loan defaults. As soon as I come off that list, I can file my 2010 taxes (for which I applied for a 6 month extension). Then the long awaited effect on my reports occurs, and I hope its really big.

Also, all of my payments went toward interest and fees, which is why anyone looking to rehab should negotiate the lowest payment they can, even if you have to throw a little BS in there. Before you speak and negotiate a number, take a pen and paper, assume you make $300 a week and break down your bills so it looks like you have little extra cash flow. This may seem shady, but when you finish making your payments, the interest and penalties are removed anyway, so it is just money pissed to the wind. Nine payments is nine payments, period.

There are six negative "collections" tradelines on my reports, it is supposed to all consolidate into one that should say should have an age of 15 years. Hopefully this is all true, I just wish we could get someone to reply with some solid facts. Looks like I'll have to be that someone, I'm only about 45 days away from it happening.

Re: Student Loan Rehabilitation And The Effect On Tradelines

Anonymous — Tue, 28 Jun 2011 00:57:12 GMT

I'm looking forward to your info personally.

My 9th payment is 7/15. I'm hoping that they do age my new TL to '99. Until last summer I didn't worry too much about my credit just thought it was trashed due to the SL.Once I checked my CR after the move and saw it was completely blank with no SL at all I dug up a collection letter and asked for rehab. I was hoping that I could avoid the student loan coming back and hurting me before rehab was complete. To that end I think I succeeded. Eight on time payments and no negatives on my CR.

However, since I started building my credit I now have AAoA at 2 months with the oldest being 8 months. So if they do put a new TL dating back to '99 with pays as agreed then I'll be a very happy camper

I also agree with you on negotiating lowest possible payments for rehab. I actually just let them tell my what I'll be paying. Looking back now I could have probably got a much lower payment and saved thousands since the fees and interest will be cut soon anyways.

I'm hoping for a decent deducible next years taxes since most of all these payments were interest along with 100% of my '10 return

Re: Student Loan Rehabilitation And The Effect On Tradelines

Anonymous — Fri, 01 Jul 2011 16:53:39 GMT

Hello. Recently I began rehabing my loans. While Rehabilitation was very straight forward for many of you, for me it was a crooked path. Student Loan Rehabiliation - I have read everything I could find on it. In Psychology there is this thing called "replacement" where you swap one self destructive behavior or addiction for a possitive "healthy addiction". That's me. I had was the worst storybook case you could imagine.

Trade lines from 94 to 99 then more later

One set with one creditor

another with another

Some on the books, (showing on FICO) others dropped off

First set of trade lines - 9th payment made - did all the things I was told - 9 months later, letter.... then another saying my loan was picked up- about 2 weeks later

19th of the month...

by the 1st of this month, all the stuff is gone from credit - vanished

next week or so it should show as multiple trade lines all with paid as required and a backdate

The second set of loans is worse. Even more money. Even more trade lines.

However it is not on my credit.

I was told this did not matter by US Department of Ed phone - they said because of one organization closing it out and sending to another, then another, then another, and then finally another that this is all an attempt at finding and getting payment on the loans. One set was with DCS and then not, and then a week later back again after they found me and were working with me....

Anyway I had 12 other unpaid items

I got 7 paid

now all that remains is housekeping on 5 neg items

6 inquirees that are about to drop off

and allllll these trade lines that are going to get possitive

so thats whats happening now... will update later.

Re: Student Loan Rehabilitation And The Effect On Tradelines

FicoTron — Fri, 01 Jul 2011 19:16:31 GMT

theworstnowthebest--that might be the hardest thing I have ever had to read, I get some of it, but you are really hard to understand...work your words a bit better next time.

Re: Student Loan Rehabilitation And The Effect On Tradelines

Anonymous — Fri, 01 Jul 2011 19:33:45 GMT

I do appologize. After the accident I have difficulty sometimes sentence forming. Sorry.

Anyway if the contest was based on most improvement, I will win.

Re: Student Loan Rehabilitation And The Effect On Tradelines

FicoTron — Wed, 06 Jul 2011 17:05:40 GMT

thats fine...my only question is this... when you finished the rehab and the tradelines showed pays as agreed, did it still show that you were late and have a date that it would fall off of your report, or were there no negatives at all?

Re: Student Loan Rehabilitation And The Effect On Tradelines

MattieNumNums — Wed, 06 Jul 2011 17:13:11 GMT

Rehab only deletes late payments from the time it went into a "Collections" status, according to Sallie Mae as of yesterday. Basically that means no matter what you will always have about 10 months of late payments. When my rehab was done all my accounts went to Paid In Full/Paid Through Insurance, all lates deleted except 10. Most of those accounts hit DoLA so I am having them removed.