topic Re: Any clue when direct loans should be picking up rehabs again? in Student Loans

Any clue when direct loans should be picking up rehabs again?

gijoe4500 — Thu, 09 Feb 2012 13:32:56 GMT

Has anyone had an word on a rough estimate on when Direct Loans will begin picking up loans again? I spoke with a direct loans rep the other day, and he was not helpful in answering any of my questions.

Re: Any clue when direct loans should be picking up rehabs again?

Gracie15 — Thu, 09 Feb 2012 15:19:14 GMT

@gijoe4500 wrote:
Has anyone had an word on a rough estimate on when Direct Loans will begin picking up loans again? I spoke with a direct loans rep the other day, and he was not helpful in answering any of my questions.

My CA keeps saying "maybe next month". This since Oct, 2011. I sure hope it's soon. Would like to see my credit score increase. I will be trying to buy a home in Nov of this year. But at this rate, who knows... Maybe you already know, but keep paying the the CA so you are still current. Let us know if you hear anything.

Re: Any clue when direct loans should be picking up rehabs again?

gijoe4500 — Thu, 09 Feb 2012 15:27:08 GMT

My CA keeps saying the same thing. I just want them to rehab it, so i can pay it off! I don't want to flat out pay it off now, without the perks of the rehab.

Re: Any clue when direct loans should be picking up rehabs again?

Gracie15 — Thu, 09 Feb 2012 15:47:21 GMT

I feel the same way. I owe a whole $500 and some. I would just pay it off, but like you I want the benefit of good pay history. I don't know if I could get it if it's paid off while in rehab.

Re: Any clue when direct loans should be picking up rehabs again?

gamegrrl — Fri, 10 Feb 2012 02:05:19 GMT

I'm sure you guys know this, but after rehabilitation of student loans, the original defaulted accounts aren't removed from your credit reports. The entries associated with the interim payment processor will be removed. They will, if you're persistent, remove any indication of default on the original loans, but not the lates. So if you have 30, 90, 120 day lates, those will remain. When the loans are reacquired and you start paying the new owner, those will show up on your report, of course. So for each rehabilitated student loan, it will be on your report twice: Once as the bright shiny new one in repayment, and once as the dark evil twin, complete with warts.

I'm only mentioning this because everything I'd read caused me to think that once I rehabbed my loans, all the negative info associated with those loans would go away. When I found out that wasn't the case, I was crushed.

Re: Any clue when direct loans should be picking up rehabs again?

FicoTron — Sun, 12 Feb 2012 20:04:03 GMT

Thats not true in all cases. If it has to do with DOE and Direct Loans, it will all be removed. Any other lender, and you are porked.

Re: Any clue when direct loans should be picking up rehabs again?

gamegrrl — Sun, 12 Feb 2012 20:42:36 GMT

Mine was a Direct Loan serviced by Sallie Mae and I still got porked post-rehab.

Re: Any clue when direct loans should be picking up rehabs again?

FicoTron — Mon, 13 Feb 2012 02:45:39 GMT

Exactly, sallie Mae = porked