Defaulted Rehabilitated Student Loan

[Anonymous]

I have 2 direct stafford loans, I defaulted on both of them and was contacted to make good on them in 2009.

Entered into a payment plan which apparently was a rehabilitation program which I wasn't really aware of. 

I defaulted again before finishing the rehabilitation, now on my credit reports there are 3 federal student

loan accounts that show as defaulted the two original loans and a third that is roughly double the amount of

the original two. Should there be a third loan account from the rehabilititation attempt? 

[scvbd99]

Not sure without more info, but did you check to see if the 2 loans that you defaulted on were sold to another lender, who then combined them into one tradeline for themselves?

If that's the case, then the 2 original ones should have stopped reporting around the same month that the new tradeline started reporting.  

Let us know if this isn't the case.  Sombebody might have run into something similar.  

[SCF]

It's also possible that the third tradeline is the collection agency that your loans were assigned to after you defaulted.

Who is each tradeline being reported by?  What is the current status on each one?  Are all three being updated each month?

[Anonymous]

The two original loans are listed as dp of educ, the third larger loan is listed as US Dept Ed. The one from US dept ed status is closed. Just the two from dp of educ are being updated.

[SCF]

A while back the US Department of Education made some pretty serious changes to their computer systems.  At that time, a lot of folks reported that their loans - which were originally one tradeline, were broken out into multiple tradelines by loan type.  I would guess that's what happened to you here.  As long as that first loan is closed and no longer updating its reporting, it sounds like things are reporting correctly.