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Default loan/rehab/7 years

ChiknNuggz
Regular Contributor

Default loan/rehab/7 years

I have 5K of student loans that i defuatled on from the dept of ED from Feb, 2014.  I am currently on my 7th payment in Feburary to bring them out of default.  Is it true that student loans and late payments drop off your credit after 7 years? If so should i still do the rehabilitation because next month in febuary would be 7 years for me?  Im looking to get a mortage this summer and the defualt student loan is the only thing stopping me. After the defualt is removed will i see a jump in credit score and will i see a jump if they just fall off at 7 years? Is their anyone i should talk to get removed at the 7 year mark this febuary?  Thanks for all the help!

Message 1 of 32
31 REPLIES 31
LaHossBoss
Senior Contributor

Re: Default loan/rehab/7 years


@ChiknNuggz wrote:

I have 5K of student loans that i defuatled on from the dept of ED from Feb, 2014.  I am currently on my 7th payment in Feburary to bring them out of default.  Is it true that student loans and late payments drop off your credit after 7 years? If so should i still do the rehabilitation because next month in febuary would be 7 years for me?  Im looking to get a mortage this summer and the defualt student loan is the only thing stopping me. After the defualt is removed will i see a jump in credit score and will i see a jump if they just fall off at 7 years? Is their anyone i should talk to get removed at the 7 year mark this febuary?  Thanks for all the help!


Yes they will still fall off at 7 years, unless these are perkins loans. Also, you still need to finish rehab because even if they come off your CRs, they are like taxes and haunt you forever, and if you do not complete rehab then you will be unlikely to get a mortgage. You are 7 payments in, I strongly suggest finishing or you will have to start rehab all over again.




Starting Score: 2•20 | EQ 550 | TU 498 | EX 505
Current Score: 7•21 | EQ [F8 645] [F9 651] [EQ5 684] [VS3 630] | TU [F8 717] [F9 692] [TU4 723] [VS3 643] | EX [F8 714] [F9 675] [EX2 681] [VS3 674]
Goal Score: 670 [X] TU [X] EX

Take the myFICO Fitness Challenge

SO Starting Score: 2•20 | EQ 502 | TU 484 | EX 521
SO Current Score: 7•21 | EQ [F8 670] [F9 622] [EQ5 706] [VS3 639] | TU [F8 676] [F9 673] [TU4 652] [VS3 620] [VS4 598] | EX [F8 707] [F9 711] [EX2 680] [VS3 656]
Goal Score: 670 [X] TU [X] EX




Message 2 of 32
ChiknNuggz
Regular Contributor

Re: Default loan/rehab/7 years

Okay i plan on finishing rehab. They wont fall off while in rehab will they? 

Message 3 of 32
LaHossBoss
Senior Contributor

Re: Default loan/rehab/7 years


@ChiknNuggz wrote:

Okay i plan on finishing rehab. They wont fall off while in rehab will they? 


Yes, they can. They are not Perkins loans, right?

 

Both me and my SO have had many of our old SLs and their corresponding CAs age off before/during rehab.

 

I would still finish it as a records search will easily disclose that you have defaulted SLs and prevent you from getting a mortgage if you just let them age off your CRs. Fed loans do not mess around lol




Starting Score: 2•20 | EQ 550 | TU 498 | EX 505
Current Score: 7•21 | EQ [F8 645] [F9 651] [EQ5 684] [VS3 630] | TU [F8 717] [F9 692] [TU4 723] [VS3 643] | EX [F8 714] [F9 675] [EX2 681] [VS3 674]
Goal Score: 670 [X] TU [X] EX

Take the myFICO Fitness Challenge

SO Starting Score: 2•20 | EQ 502 | TU 484 | EX 521
SO Current Score: 7•21 | EQ [F8 670] [F9 622] [EQ5 706] [VS3 639] | TU [F8 676] [F9 673] [TU4 652] [VS3 620] [VS4 598] | EX [F8 707] [F9 711] [EX2 680] [VS3 656]
Goal Score: 670 [X] TU [X] EX




Message 4 of 32
ChiknNuggz
Regular Contributor

Re: Default loan/rehab/7 years

They are not perkins loans. Thry are from department of education. I took the loan out Feb 2014, but when do they start the default of the 7 years? When the loans actually entrr default then the 7 years starts?

Message 5 of 32
LaHossBoss
Senior Contributor

Re: Default loan/rehab/7 years


@ChiknNuggz wrote:

They are not perkins loans. Thry are from department of education. I took the loan out Feb 2014, but when do they start the default of the 7 years? When the loans actually entrr default then the 7 years starts?


Ok well that is different, they do not just age off when the account age hits 7 years. It will start wgen you missed your first payment (day 1) and never brought the account current again.

 

I stribgly suggest pullung all 3 credit reports from annual credit report - free to pull weekly thru 4/2021 - no scores. These are the most comprehensive credit reports around and they will tell you the info you seek.

 

TU will list "estimated date of removal"

 

EX will list "on record until"

 

EQ will list your actual "date of first delinquency". There is another spot that shows "date major delinquency first reported" - this is not the date you are looking for. When you locate "DoFD", add 7 years to it amd the account should age off on it's own the month or so prior to that.

 

When you find the dates, come back and let us know what they are and maybe we could assist you further. Also let us know if you have trouble accessing any of the reports.




Starting Score: 2•20 | EQ 550 | TU 498 | EX 505
Current Score: 7•21 | EQ [F8 645] [F9 651] [EQ5 684] [VS3 630] | TU [F8 717] [F9 692] [TU4 723] [VS3 643] | EX [F8 714] [F9 675] [EX2 681] [VS3 674]
Goal Score: 670 [X] TU [X] EX

Take the myFICO Fitness Challenge

SO Starting Score: 2•20 | EQ 502 | TU 484 | EX 521
SO Current Score: 7•21 | EQ [F8 670] [F9 622] [EQ5 706] [VS3 639] | TU [F8 676] [F9 673] [TU4 652] [VS3 620] [VS4 598] | EX [F8 707] [F9 711] [EX2 680] [VS3 656]
Goal Score: 670 [X] TU [X] EX




Message 6 of 32
ChiknNuggz
Regular Contributor

Re: Default loan/rehab/7 years

D63AA7C3-31A8-4145-9CFA-0B4363885B2B.jpeg

 This is what its reporting.

Message 7 of 32
LaHossBoss
Senior Contributor

Re: Default loan/rehab/7 years


@ChiknNuggz wrote:

D63AA7C3-31A8-4145-9CFA-0B4363885B2B.jpeg

 This is what its reporting.


Did it give you the estimated date of removal? From this it looks like it probably is 2/2022.

 

This specific account(s) should be removed once the rehab is completed. It would still age off in 2022, but you are 2 months awat from rehab being done, so it will be remived sooner that way than waiting.




Starting Score: 2•20 | EQ 550 | TU 498 | EX 505
Current Score: 7•21 | EQ [F8 645] [F9 651] [EQ5 684] [VS3 630] | TU [F8 717] [F9 692] [TU4 723] [VS3 643] | EX [F8 714] [F9 675] [EX2 681] [VS3 674]
Goal Score: 670 [X] TU [X] EX

Take the myFICO Fitness Challenge

SO Starting Score: 2•20 | EQ 502 | TU 484 | EX 521
SO Current Score: 7•21 | EQ [F8 670] [F9 622] [EQ5 706] [VS3 639] | TU [F8 676] [F9 673] [TU4 652] [VS3 620] [VS4 598] | EX [F8 707] [F9 711] [EX2 680] [VS3 656]
Goal Score: 670 [X] TU [X] EX




Message 8 of 32
ChiknNuggz
Regular Contributor

Re: Default loan/rehab/7 years

Did not give an estimated date of approval. Either way I'll b done with the rehab very soon. My last payment is march 8th. Hoping to go up atleast 50 points. Its the only derogatory mark or closed in collections on my credit report.

Message 9 of 32
ChiknNuggz
Regular Contributor

SL REHAB/CARES ACT/GREAT NEWS

Called Great Lakes Service who has my defaulted student loan and got GREAT NEWS!  I started my rehab back in 8/1/2020 and made my required $10 payment in Oct, Jan (2 payments) , and Feb. Because of the CARES ACT, i did not make any payments the other months because they are not required. Every month I call to ensure that I am on the right track to get out of default and that i was getting credited every month for the CARES ACT CREDIT.  My original last payment was scheduled for 3/17/2021 but because I had made a double payment in Jan and the other payments they actually counted it toward the 9 total payments in 10 months which means I AM COMING OUT OF DEFAULT A MONTH EARLY!!!  My last payment is scheduled to be made on 2/16/2021 and I will be that much closer to being out of default and getting to the goal of getting a mortgage.  This default loan is the only thing holding me back.  So to all the people going through the rehab program, stay strong, call and make sure every payment it accounted for, and just keep doing it.  This journey to no default/ good credit it long but worth it.  Stay positive people Smiley Happy

Message 10 of 32
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