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Consolidation of very old defaulted student loans.....how does this work?

IamWesty12
Regular Contributor

Consolidation of very old defaulted student loans.....how does this work?

Hey guys.  Another question.  After Biden's Fresh Start Inititiave and the loan forgiveness announced a few weeks ago I decided to once and for all get my student loan $hit straight.  After the full $20K forgiven, I will then have a balance of roughly $4k left to pay.  These loans are dated back from 2000 through 2002 so they have long since been dropped from any of my credit reports.  With me getting the green light to rehab these with my new IDR payment being only $5.00 monthly, how will these loans report if they report at all?  I am confused about this entire process.  If the student loans dropped off any credit report long time ago but they are now being pulled out of default and rehabbed, am I to assume that they will now report as a paying tradeline?  Again, I took these out in 2000 when I received my first associates.  My name has already been cleared from CAVIRS with this program and I was given a COE yesterday for a USDA 502 direct loan and will start house shopping next.  But like I stated, I wanted to once and for all get all of these defaulted student loans taken care of and honestly got lucky with the fresh start program.  Will they start reporting on my credit reports as 22 year old tradelines?  If so, will I then get the benefit of that age of them?  Will they also now show on my credit reports as $24K in loans, affecting my balances, my utilization, etc?  My total defaulted loans were just over $24K. So taking $20K out of the equation from forgiveness, that leaves roughly $4K.  I just sent back in my signed document agreeing to a monthly repayment plan of $5 monthly on my income.  So what will happen next once these very old defaulted student loans go into rehab and get out of default?  As always, thank you for any info and time to this!

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