topic Re: 109 point drop after rehab and deleted from report in Student Loans

109 point drop after rehab and deleted from report

Gmoney144 — Mon, 18 Feb 2019 04:59:08 GMT

A year ago I started on my credit journey. I was able to start rehab on my loans that were in default. After 9 payments they were out of default and deleted from my report. Today they reappeared on my report as new. All 45k. My Fico TransUnion account dropped 109 points Will it increase after time?

Re: 109 point drop after rehab and deleted from report

Anonymous — Mon, 18 Feb 2019 17:23:54 GMT

To make sure I understand you, when you got out of default on your 9 (federal?) loans, was both the default and the original tradelines with the first servicer removed? When you said they returned new when they were picked up, do you mean they appeared as new loans (at 100% util) or that the original date you borrowed the loans is there same?

Most importantly, do any of the 9 loans that are reporting now show any lates?

Re: 109 point drop after rehab and deleted from report

Gmoney144 — Mon, 18 Feb 2019 20:36:29 GMT

@Anonymous wrote:
To make sure I understand you, when you got out of default on your 9 (federal?) loans, was both the default and the original tradelines with the first servicer removed? When you said they returned new when they were picked up, do you mean they appeared as new loans (at 100% util) or that the original date you borrowed the loans is there same?
Most importantly, do any of the 9 loans that are reporting now show any lates?

I apologize for being unclear. 4 loans that were in default and after rehabilitation they were completely removed from my credit report. Now my Transunion report shows new student loans starting in February at 100% util. Wondering if this temporary and I’m sick to my stomach. Btw. New tradelines.

Re: 109 point drop after rehab and deleted from report

Anonymous — Mon, 18 Feb 2019 22:14:43 GMT

Okay, i understand now. It was confusing because I've never heard of that. If you rehabbed, they should go back to the original date. If you consolidated, you would get one, new loan. As far as I know, I think something is wrong with the way they are reporting.

I would definitely talk with your new servicer and/ or Dept of Education. If you cannot fix it with them, or the student loan Ombudsman, I can walk you through a CFPB complaint. Someone owes you a solid explanation imo.

Re: 109 point drop after rehab and deleted from report

Gmoney144 — Tue, 19 Feb 2019 00:32:11 GMT

@Anonymous wrote:
Okay, i understand now. It was confusing because I've never heard of that. If you rehabbed, they should go back to the original date. If you consolidated, you would get one, new loan. As far as I know, I think something is wrong with the way they are reporting.
I would definitely talk with your new servicer and/ or Dept of Education. If you cannot fix it with them, or the student loan Ombudsman, I can walk you through a CFPB complaint. Someone owes you a solid explanation imo.

Any help would be great. Fed Loan is the servicer. And filing a complaint is something I would need to do.

Re: 109 point drop after rehab and deleted from report

Anonymous — Tue, 19 Feb 2019 03:51:31 GMT

Dept of Education can tell you how it's supposed to report. Don't tell them what's happening, they tend to redirect you to the servicer. Ask them if someone rehabs will they report as new loans, in general. I like to do this using the chat. Then print it or request the transcript emailed to you. You'll need this for later.
You could talk to FedLoan Servicing. I've always had to talk with an account manager to get anywhere. If I do. If they end the conversation with they'll look into it, etc. it's just a line to get you off the phone. They won't do a thing. Any problem they have ever actually solved with me they spent the time to at least begin to fix it during the conversation.
If they can't/won't fix it, you still got something out of it. You should record dates, times, who you spoke to with their ID, and what their response was. They can actually mail or email you a log of past cs calls; I've done this.
When you have problems you first have to use the Student Loan Ombudsman. Some have their problems resolved then. It can take about a month or so. Mine was not.
The next step was the Consumer Financial Protection Bureau. I filed a complaint there and included PDFs of everything helpful. For you, I would include the above stuff, a copy of a bill with your account number, maybe your rehab letter, and especially a copy of a credit reports that showed the loan when it was older (with original loan dates, etc) as well as how they report now. Since it's probably FedLoan Servicing that's reporting it this way, I would do the complaint against them. Another good resource would be a a copy of your loans from the NSLDS gov website. They should show original loan dates too.
My complaint was answered really quick by FedLoan Servicing. It was fixed within days. They've been declawed a bit, but I think CFPB as a last resort fixing the loans usually yields a good result.
You might not get all the points back with loan that have high utilization, but it should correct the age a lot as student loans are usually people's oldest accounts.
Also, have you considered an Income-driven repayment plan with your new servicer?

Re: 109 point drop after rehab and deleted from report

Gmoney144 — Tue, 19 Feb 2019 05:14:51 GMT

@Anonymous wrote:
Dept of Education can tell you how it's supposed to report. Don't tell them what's happening, they tend to redirect you to the servicer. Ask them if someone rehabs will they report as new loans, in general. I like to do this using the chat. Then print it or request the transcript emailed to you. You'll need this for later.
You could talk to FedLoan Servicing. I've always had to talk with an account manager to get anywhere. If I do. If they end the conversation with they'll look into it, etc. it's just a line to get you off the phone. They won't do a thing. Any problem they have ever actually solved with me they spent the time to at least begin to fix it during the conversation.
If they can't/won't fix it, you still got something out of it. You should record dates, times, who you spoke to with their ID, and what their response was. They can actually mail or email you a log of past cs calls; I've done this.
When you have problems you first have to use the Student Loan Ombudsman. Some have their problems resolved then. It can take about a month or so. Mine was not.
The next step was the Consumer Financial Protection Bureau. I filed a complaint there and included PDFs of everything helpful. For you, I would include the above stuff, a copy of a bill with your account number, maybe your rehab letter, and especially a copy of a credit reports that showed the loan when it was older (with original loan dates, etc) as well as how they report now. Since it's probably FedLoan Servicing that's reporting it this way, I would do the complaint against them. Another good resource would be a a copy of your loans from the NSLDS gov website. They should show original loan dates too.
My complaint was answered really quick by FedLoan Servicing. It was fixed within days. They've been declawed a bit, but I think CFPB as a last resort fixing the loans usually yields a good result.
You might not get all the points back with loan that have high utilization, but it should correct the age a lot as student loans are usually people's oldest accounts.
Also, have you considered an Income-driven repayment plan with your new servicer?

Thanks for all the info. So to summarize. They were not suppose to report as a new loan but a loan from 2001 as paid or up to date. I’ve started the income driven plan

Re: 109 point drop after rehab and deleted from report

Anonymous — Tue, 19 Feb 2019 08:45:35 GMT

I've never rehabbed myself but from all the literature I've read (to help a friend do it) and the stories I've read on here, correct. There are a few from the past week or so. You could ask them how their loans report, but I've only seen 1 new loan when you consolidate.
If you're on an Income-driven repayment plan for forgiveness, you should check out if the Income-based repayment plan or REPAYE have the lowest payments. There are also added interest benefits for those two plans if your payments are lower than the interest. REPAYE actually will cover all of the unpaid interest for 3 years and half thereafter for subsidized loans. Unsubsidized loans the gov pays half of the unpaid interest period. It doesn't really matter if it's getting forgiven in the end but with possible legislation about a forgiveness amount cap, it's nice to reduce interest by 50%!

Re: 109 point drop after rehab and deleted from report

Gmoney144 — Tue, 19 Feb 2019 19:06:04 GMT

Update. Today I spoke to Fedloan servicing. Since my student loans were with a different servicer when they were in default, Fedloan is reporting the Loans a new since my loans have been transferred to them. Still I’m skeptical that they should show on the report as new. I’m contacting the ombudsman for more info.

Re: 109 point drop after rehab and deleted from report

Anonymous — Tue, 19 Feb 2019 19:37:10 GMT

What does the National Student Loan Database website say about your loans?

Re: 109 point drop after rehab and deleted from report

Anonymous — Tue, 19 Feb 2019 19:44:27 GMT

Asked Department of Education in the student aid chat. They refused to answer even a general question and redirected me to the servicer. They said they don't know anything about the loans. Yeah. Sure. 🤨

Re: 109 point drop after rehab and deleted from report

Gmoney144 — Tue, 19 Feb 2019 23:45:43 GMT

@Anonymous wrote:
What does the National Student Loan Database website say about your loans?

The NLDS gives me a history of me student loans. What exactly am I looking for?

Re: 109 point drop after rehab and deleted from report

Anonymous — Wed, 20 Feb 2019 01:50:03 GMT

I don't know. Something that would explain why your new loan origin date is recent. Maybe something that says original loan balance and it's not the same as what your loans are currently showing as. I found another thread on a FedLoan Servicing rehab last year and they all reported new tradelines, but dated back to the loan origin.
This will all help if you need to do a CFPB complaint imo.

Re: 109 point drop after rehab and deleted from report

Anonymous — Tue, 07 May 2019 05:03:45 GMT

Any updates?

Re: 109 point drop after rehab and deleted from report

Anonymous — Tue, 07 May 2019 18:35:37 GMT

Libprincess: did the same thing or something similar happen to you?

Re: 109 point drop after rehab and deleted from report

Gmoney144 — Thu, 16 May 2019 13:50:06 GMT

Update. My score increased to the original score of 735-745. However, it dropped gain last week. Seems that after I inquired about the status of my loans for the purposes of inquiring a mortgage, the score dropped 109 points. The word deferment was removed from my account( I’ve been on a income driven repayment program) and I have no ideas what’s going on. I’ll try to post i

Re: 109 point drop after rehab and deleted from report

Gmoney144 — Thu, 16 May 2019 13:46:54 GMT

Re: 109 point drop after rehab and deleted from report

Anonymous — Thu, 16 May 2019 14:25:57 GMT

You need to get your actual FICO score. You can get a free 3B FICO 8 scores and reports from creditchecktotal for $1 trial. Credit Karma is good for general information purposes but those scores are not related to the ones the lenders use.

Re: 109 point drop after rehab and deleted from report

Gmoney144 — Thu, 16 May 2019 22:33:22 GMT

@Anonymous wrote:
You need to get your actual FICO score. You can get a free 3B FICO 8 scores and reports from creditchecktotal for $1 trial. Credit Karma is good for general information purposes but those scores are not related to the ones the lenders use.

I did what you suggested. To my relief the accurate scores were shown. Thanks !!!!

Re: 109 point drop after rehab and deleted from report

Anonymous — Thu, 16 May 2019 23:39:12 GMT

Wow, that's great!!
As long as you don't have any open disputes, those should be correct. I'd there something different on TU than the other two? Sometimes it's something that hasn't fallen off or is reporting differently. Sometimes it's just the difference in CBs. Hopefully you find everything accurate on all three but it might be worth a look if you don't know.
Congrats on your excellent scores. 🙂