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?
@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.
@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.
@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
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.