topic Re: Student Loan Rehabilitation in Student Loans

Student Loan Rehabilitation

Anonymous — Tue, 05 Jul 2011 21:57:04 GMT

My guarantor is KHEA, I Have completed my student loan rehabilitation on June 1, 2011. I know that under this program it is promised that if you make 9 monthly payment on time and if the institution find someone to pick up your defualted loan, KHEA will send information to the credit bureaus for request for deletion. It has been over 30 days and I have not received a letter for a credit update but I have found someone to pick up my existing loan. Is anyone has experience with this process please let me know because I am looking forward to purchasing my first home.

Thanks

Re: Student Loan Rehabilitation

Anonymous — Wed, 06 Jul 2011 02:27:38 GMT

My loan was rehabilitated via the Department Of Education. Once the loan was picked up by the new lender I got a letter in the mail stating the rehab was completed, I never go a letter that my credit was updated.

Once I knew the loan was picked up even before I got the letter in the mail, I called the DOE and asked if the information was sent to the credit bureau to remove the negative information. They said yes, I asked for the date it was sent over. Once I got the date I waited 30 days from the date it was sent and purchased my scores from the FICO website, the negative information was removed from Transunion buy not Equifax. A few weeks later I purchase my Equifax score and the information was gone.

I could be wrong, but I don’t think you are going to get a letter. You will just have to keep checking your credit report. Also based on the information form the DOE it can take up to 90 days for the information to be removed.

Re: Student Loan Rehabilitation

Anonymous — Wed, 06 Jul 2011 11:05:45 GMT

Thanks for repying Shazer7

I was a little concerned but I promise you I will never get in this mess again. i will let you know how things worked out.

Germaine47

Re: Student Loan Rehabilitation

MattieNumNums — Wed, 06 Jul 2011 15:06:06 GMT

It takes time. My loan was picked up by Direct Loan. They reported immediatly. Sallie Mae on the hand I am still battling (6 months later) to fix my scores.

Just make sure you understand that not all records come off only records from when the collection started, that means you will most likely have 10 negatives that won't disappear until they die off.

Re: Student Loan Rehabilitation

FicoTron — Wed, 06 Jul 2011 16:59:09 GMT

so they still showed as negatives until 7 years after the first delinquency? I haven't heard this before. Any other rehab story I have seen has said that all negatives were deleted. Can you elaborate on this a bit?

Re: Student Loan Rehabilitation

MattieNumNums — Wed, 06 Jul 2011 17:15:08 GMT

I thought the same thing until I called Sallie Mae yesterday and asked them about the 10 late payments. The agent stated the Rehab program only deletes late payments since the Loan hit "Collections" status which is about 12 months he said. Thats why all my accounts have 10 late payments, because it took 2 months for it to become delinquent and another 10 before it went into collections. Either way it says paid in full and my credit score went up 50 points.

Re: Student Loan Rehabilitation

FicoTron — Thu, 07 Jul 2011 20:45:12 GMT

well, like I said, thats Sally Mae. Not every education lender plays it the same way...I went through Direct Loans, so hopefully its a different story. Your score would have probably shot up 100pts if they did what they were supposed to do.

Re: Student Loan Rehabilitation

MattieNumNums — Fri, 08 Jul 2011 17:06:16 GMT

Direct Loan is a great lender. I have them now. They actually aren't out to ruin your credit.

Re: Student Loan Rehabilitation

FicoTron — Fri, 08 Jul 2011 19:03:01 GMT

yes, I just found out today that they will be reassuming my loan. So, hopefully when they report it, they delete all neg's. Technically the 6 seperate loans all went into default in November of 2006, so they could stay on my report until 2013, which would be absolutely horrible.

Re: Student Loan Rehabilitation

MarineVietVet — Fri, 08 Jul 2011 20:39:42 GMT

The last two posts were removed because both were less than friendly, supportive, or respectful.

If you feel someone has personally attacked you click on the "Options" button and report any conduct you consider offensive or innappropriate.

Please don't respond in kind publicly. All that does is ramp up the rhetoric.

MarineVietvet, myFICO moderator

Re: Student Loan Rehabilitation

FicoTron — Sat, 16 Jul 2011 04:06:58 GMT

i wish i could have seen what those posts said...so that i can defend myself...i'm assuming they were towards either me or the last poster...anyway, keep the discussion alive for anyone who has questions about rehab...

Re: Student Loan Rehabilitation

Anonymous — Sat, 10 Sep 2011 18:38:24 GMT

I agree with your posting absoulutely. I was under the assumption that all derogatory credit will move to the positive side once i completed the student loan rehabilitaion. The new lender nelnet was the one that reported my loan to the credit bureaus from 2006. The rehabilitaion process doesnot include the previous lenders that held my loan. rerer I have checked my report and approximately 8 tradelines should fall off by August 2012. One more year of night mare may be worth the wait I didnt consider how much trouble going to defualt would cause.