Can someone please help me w/some confusion...

[Jon85]

Hi all, 

So I defaulted on 5 SLs in 2010.

Sallie Mae was the servicer, Citibank was the lender, and NJ HESSA is the guarantor. I didn't even know any of these terms until recently or that they were all connected. 

On my CR, Sallie Mae, Citibank, and HESSA are reporting defaults... Sallie Mae for each of the 5 loans and Citibank for the same 5 loans. Is that normal? And now HESSA has its own entry with a balance of all 5 put together... that entry I understand, as it was transfered back to them.

I'm rehabbing through HESSA. I have 7 months left. Does this mean once it gets picked up, HESSA will delete its TL and then tell SM and CB to remove the default status?

Also, are Citibank and SM supposed to report each of their own entries for the same loans? I have 5 loans total, but 10 entries. 

And then I hear some people say "thankfully I caught my loans before they went to a collection agency..."---is HESSA a collection agency? Or would it have gone away from them too if I waited much longer? 

[Anonymous]

HESSA isn't a collection agency per se, they're a higher education agency. They administer financial aid programs. They also act as guarantor, apparently.  It is normal to have multiple entries but no one's clear on what should be deleted post-rehab. People are getting all manner of differing results, so it's hard to say.

http://money.howstuffworks.com/personal-finance/college-planning/financial-aid/state-financial-aid-o...

I've been trying to research the process myself but it is dense and confusing....

[kjel]

+1

There's no rhyme or reason in how TLs are being dealt with once rehab is complete. The federal rehab program only promises that the default status will be removed, however CAs are tellign people that hte TLs will reflect all the delinquencies that led to the default status to be wiped clean.

Multiple reporting isn't uncommon-again it's a gray area about who is doing what especially when you have an originator, a gaurantor, and a servicer. Many people have had to reach out to the ombudsman to resolve these issues.

My advice is to wait until you are finished with rehab and picked up by a servicer to clear up your CRs.