I have federal student loans that were allowed to go into default. I'm now getting serious about cleaning up my credit since doing better financially. My question is if it is correct that I have 16 separate trade lines reporting on my credit from my loans.? I don't have 16 loans and also none of them actually say default but rather collection. I'm trying to decide whether to rehab them or consolidate for the best results. I'm also in the process of tackling other negatives on my credit and don't want to receive a high payment for months before getting them updated on my reports. Any help is appreciated.
Could you list the accounts that your trying to get caught up on? We have a student loan expert @Sabii that can help you on the SL part.
Yes I have a Jefferson capital closed old Verizon account witha balance of $848, an old First Premier charge off DOFD Feb 2016 for $444, a vehicle that was charged off DOFD April 2015 that they just have been adding fees to since then until it's now $30,331, and an old flexshopper account DOFD July 2016 but it shows 0 balance. Any advice will be appreciated and thanks for your response.
Jefferson Capital/Verizon are bears and wont PFD. So paying this off will stop the updating and will age off.
FP just go ahead and PIF so the util if high will not count against you any longer. They are see/saw with GW letters. Could be yes or no.
Flex Shopper with 0 balance. Is there a collection account with this?
Who was the vehicle with. Was it repo'ed and sold at auction? Is the 30g's+ the left over after auction? If it was sold at auction. Find out what the balance is after the sale.
Just need a few questions above answered to continue.
Welcome to the forums BTW!
+1 to everything Sabii said.
I have consolidated loans from a (second) default. I rehabbed a default, and the same thing - it didn't say default, it said collections. That's the same thing. You defaulted on your loans and the servicer sent it to collections, so the comment is correct.
I will tell you that it's best for your financial well being *and* your credit score (your finances should always come first, though I know a lot of people focus on their scores) if you rehab your loans. If 15% of your income is too high, just be honest with your servicer and they will likely work on a payment plan that will work for you.
If/when you rehab, the default will be removed, and you'll have a lot of positive/older tradelines, and that's good! MANY servicers will delete lates and other negative information along with the default, please note, they DO NOT need to do this, so don't expect it. Just enjoy the positives if they do. If they do not delete the lates, you'll have to wait the standard 7y from the date of first delinquency (DOFD).
If you consolidate all of the defaults will stay on your credit report, and you cannot consolidate or rehab a second time (so not consolidating means that if something happens again, you would at least have that option).
There is a problem with servicers not communicating with borrowers when the rehab is complete, so please stay on top of your student loans. I was in a tumultuous place when my rehab ended and I was not notified of my new servicer, but missed it since I wasn't staying on top of things and that's how I ended up in a second default. Servicers can tack on a lot of fees, so you don't want them to be in default any more than possible.
And just to address the multiple loan thing - every semester/unit you borrowed was a separate loan, so even if you're making one payment, it is being divvied up between your loans for you, it's a nice service (some servicers make you submit a payment for each loan, which can be irritating). You did take out multiple loans, a lot of times you didn't realize it then (I think I had 8? 4 semesters with subsidized/unsubsidized FFEL loans on each, for a total of 8).
Let us know if you have any more questions, between @Sabii and I can help you out.