Completed Loan Rehab - Still showing US DEPT OF ED/GLELSI Late payments

[TheFIGuy]

Hey myFICO Familia,

I completed my Student Loan Rehab last year and all my negative, defaulted accounts except one "US DEPT OF ED/GLELSI" with 9 late payments of 120+ days remain. Nelnet picked up the defaulted loans and report positive from when I started school.

How do I get "US DEPT OF ED/GLELSI" this account to be removed or am I just unlucky?

[Anonymous]

Hi,
Do you mean the default accounts are still there or just that the accounts from before the default still show up on your credit report?
Rehab removes the default, but it does not remove the old accounts with the lates unfortunately.

[TheFIGuy]

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@Anonymous wrote:
Hi,
Do you mean the default accounts are still there or just that the accounts from before the default still show up on your credit report?
Rehab removes the default, but it does not remove the old accounts with the lates unfortunately.

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@Sabii "Rehab removes the default, but it does not remove the old accounts with the lates" — Pardon my ignorance but wouldn't the default account be the one with lates?

[Anonymous]

I think @calyx could explain this better, but my understanding is that they will remove the default meaning any one in collections.
Your old account (s) after just your old accounts. They remain in most cases and are rarely redlined through a dispute with the CBs. You could try though. Use your rehab completion letter. Wait until a few months after the rehab is done to be sure.
There are no guarantees though.

[calyx]

No, you can have lates and not default.   The default actually makes the account negative, the lates mean that your tradeline is still ultimately "positive," just with a few dings (battered and tarnished, as it were).

I would send a goodwill letter to Great Lakes - explain that you rehabbed and that you are seeking a goodwill removal of the lates *or* the tradeline altogether.    Great Lakes is one of the servicers I more often see positive information with regards to goodwill, so I think you have a good shot at it.   Otherwise, it's 7 years until the lates fall off.

[TheFIGuy]

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@calyx wrote:

No, you can have lates and not default.   The default actually makes the account negative, the lates mean that your tradeline is still ultimately "positive," just with a few dings (battered and tarnished, as it were).

I would send a goodwill letter to Great Lakes - explain that you rehabbed and that you are seeking a goodwill removal of the lates *or* the tradeline altogether.    Great Lakes is one of the servicers I more often see positive information with regards to goodwill, so I think you have a good shot at it.   Otherwise, it's 7 years until the lates fall off.

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Hi @Calyx, @Sabii, or anyone

Can you both answer the below questions:

• Attempted to GW Great Lakes but they declined my offer as expected. I was shot down via email and phone call which I also expected I guess.
  
  1. Question: During the phone call the rep stated she could not help me and this matter would need to be handled with the US Dept of Education. I called them to which they said they didn't see anything "negative".
  2. Question: When I log in to the NSLDS—National Student Loan Data system no account with "US DEPT OF ED/GLELSI" or "Great Lakes" is shown or exists. Is this normal? I find that to be strange personally.
  3. Question: Can one of you point me in the "formal direct dispute for dummies" as I know disputing online is not smart!

A. If you can answer this, would I want to dispute the account or late payments? Apologies for the ignorance!

[Anonymous]

1. Both are often trained to pass the buck or in general, be as unhelpful as possible. 😁 J/k, I'm a bit cynical due to my interactions with those two. I would recommend taking what they said with a grain of salt. You can see lates on your report so they're probably there. You could double check by looking at a different report but it's very uncommon for the lates on the original loan to remain past getting out of default. GW rarely work due to the mandatory reporting in the HEA (though I would recommend the saturation technique in that case) and disputes with the CB have mixed results. When disputing it's also a good idea to think if something worse could update than what's already there.

2. Without seeing it, I would say no. It's with Nelnet right now. I can't recall how or if it shows past servicers.

3. There's nothing to dispute as far as I can tell. Only with the CB maybe and technically idk that there's anything inaccurate. 7 years from Aug 2016 is Aug 2023. You could always try getting them off 6 months early with an early exclusion but it's probably just something that would have to fall off.
Sorry I couldn't be more helpful.

[Mookey67]

That is the trade line prior to the default which is how it is suppose to read. Since default doesn’t occur until 270 past due on federal loans, if you dispute it then it will more than likely update and add worse delinquent marks up to default. Since it hasn’t updated since 2016, I would just leave it alone. Hope this helps

[TheFIGuy]

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@Mookey67 wrote:
That is the trade line prior to the default which is how it is suppose to read. Since default doesn’t occur until 270 past due on federal loans, if you dispute it then it will more than likely update and add worse delinquent marks up to default. Since it hasn’t updated since 2016, I would just leave it alone. Hope this helps

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@Mookey67, @Sabii and All,

You have all helped affirm my suspicions. I was thinking if I disputed they could possibly update my report with worse delinquent marks. As someone on here once said, "Don't poke the sleeping bear". It sucks these 120/day late marks will hurt my score by 60+ points until 2022-2023 but I guess being an ignorant college kid haunts you for a while eh.