Closed/Transferred SLs now in Rehab

[Anonymous]

Hello all,

I have roughly 28 days to be done with rehab. I have read countless stories on here as to how to tackle getting rid of delinquencies and negatives associated with the rehabbed SLs. Unfortunately, my CR was hit with a 39pt drop because DOE "flagged" my account to show in collections yesterday! So, odd because it never dropped that low during the 8 months and just like that 1 month to be completed Im flagged?!. I worked so hard to clean my credit while in rehab I went from a 582 to 626 in 6 months and just like that all my hard work tanked! I won't be discouraged, I just need to know how will my scores be affected after the delinquents are removed? I have 36 accts 18 of which show closed/transferred $0 balance these are the same 18 accts that were transferred to DOE (now being rehabbed) so they show up twice. When disputing should I just dispute the rehabbed accts? I wouldn't like my AAOa to take a hit being that my SLs are my oldest accounts by 11 years. If anyone has recently completed rehabbed and disputed how did you go about doing it? Letter? Call? Or online? Thank You so much!

[Gidgetmom]

I can only tell you my experience.  After rehab, my credit reports showed the 3 “new” loans with the original open date and the 3 charged off loans.  I tried to dispute the charged off loans as duplicate, but none of the CB’s would remove them.  This was two years ago.  In the last several months, the 3 charge off were removed by all 3 bureaus.

I ended up with 3 loans, the original open date, and the balances owed now are larger than the original balances due to capitalized interest.  

Also, be prepared...once your loans get picked up by a new loan service, your monthly payments may change drastically. My payments were $61.00 during rehab and jumped to $270 with the new loans.  Of course, I owed over $30,000.  They did remove some of the capitalized interest which knocked my balance down to about $23,000.

Best of luck to you!  No matter what, rehabbing the Loans was a step in the right direction for me.

[Anonymous]

Thank You for your insight and sharing your experience. After rehab, did you take action right away to remove the duplicates? Or did you wait until a new servicer picked up your loans to see a change on your CR? Did you lose AAoA after the charge off dropped off?
Would just like to know how I can get back on track soonwr than later, my Husband and I are trying to buy a home and I need to know what I can do in 60 days!

[Gidgetmom]

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@Anonymous wrote:
Thank You for your insight and sharing your experience. After rehab, did you take action right away to remove the duplicates? Or did you wait until a new servicer picked up your loans to see a change on your CR? Did you lose AAoA after the charge off dropped off?
Would just like to know how I can get back on track soonwr than later, my Husband and I are trying to buy a home and I need to know what I can do in 60 days! 

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I didn’t try to dispute anything until after the new loans were reporting to the CB’s.  I disputed the old loans as duplicates.  I did this online because I was paying each bureau for access to my reports at the time.  As I said, they did not remove them.  They eventually were removed some time last year...almost 2 years after the new loans were added, without my intervention.  I didn’t notice a change in my score when they dropped.

I did not lose the AAOA once the charge offs dropped. The new provider, Navient, used the information from the original loan, including the open date. 😉. 

Every loan is different...could be that you would have luck getting the old tradelines off, once the new one’s report.  🤞🙏

Best of luck on your new home!