topic Re: What is a "neutral remark"? in Student Loans

What is a "neutral remark"?

hapagrrl — Tue, 08 Mar 2011 01:08:57 GMT

Can anyone tell me what a "neutral remark" for a studen loan (rehabbed, but currently marked as "paid collection") would be? I know that the tradelines themselves will live on my report until the 7 years are up, but I'm wondering if there's maybe something I could suggest they put into the comments field, instead (this is for the gw letters I'm working on).

Re: What is a "neutral remark"?

Tazman81 — Tue, 08 Mar 2011 16:41:08 GMT

Was the student loan actually rehabbed through an approved rehabilitation program? Please provide us some detail on how your student loan got to the current point. The way the status is listed, it sounds like the student loan went into default/collections, and then you either (1) had the cash to just pay it off, or (2) got a loan consolidation and paid it off. If either #1 or #2 is correct, then the status is reporting correctly. However, if you actually rehabilitated the loan through one of the rehabilitation programs (and did not fall behind again), then the status should have gone to "paying as agreed".

Re: What is a "neutral remark"?

hapagrrl — Tue, 08 Mar 2011 17:00:43 GMT

Thanks, Taz, for responding!

Yes, I rehabbed through a program, although I don't know if it was an approved one (I assume it was?). So, the SL went to default/collections, and that's when I rehabbed; I didn't pay with cash or do a consolidation (although I am in the process of doing that now -- there are a lot of SLs for me, for undergrad and grad school: it's been like going on an easter egg hunt to find them all, they've been sold and re-sold so many times!).

Anyhow, neither scenario #1 or #2 you posed weren't what happened... I rehabbed and paid on time, as agreed, for the term of the rehab (I'm in deferment now, as I've been laid off from my job). Would writing a GW letter to Citi bank to get them to update the status would do any good?

Hmmm.. well, from what you're saying, it sound like when the consolidation does go through, that status line will go back to saying what it does now, anyway, so I wonder if I'm just chasing my own tail here...

Re: What is a "neutral remark"?

Tazman81 — Tue, 08 Mar 2011 20:17:01 GMT

Well, it sounds like you did the right thing and rehabbed correctly through them. That normally requires that you make 9-12 on time payments. If you have completed that program, then the status of your loan should go back to "paying as agreed". I would contact the lender and be sure that they realize you have rehabilitated that loan and ask that they update the status as it is not showing correctly. Be prepared to provide them with a letter (or other documentation) that shows you successfully rehabilitated the loan. You should have received this through the mail once you made the last payment required to rehab the loan.

After you have rehabed a loan, then you CAN consolidate it and the status of the previous loan should still show "paying as agreed". It is only when you consolidate a defaulted loan that the status does not change. I hope this helps.

Re: What is a "neutral remark"?

hapagrrl — Tue, 08 Mar 2011 20:28:20 GMT

Tazman -- this has been *tremendously* helpful, yes!! THANK YOU very much!!!!

And yep - I've got all my documentation showing that I succesfully rehabbed.. and yes, I'm consolidating post-rehab. I guess I've got me some letter-writin' to do!!

Thank you very much!