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Defaulted on student loans

Established Member

Defaulted on student loans

So back in 2012 I took out 2 student loans and after I was done I defaulted on them. The US dept of edu sent them to a collection agency and I am now in a 9 month rehab program. Once I am done with the 9 months with no missed payments they said the US dept of edu will pick my loan back up and I will no longer be in default. ( I have 4 accounts showing up on my credit report, 2 from US dept of edu and 2 from collection agency about these loans) 


Two questions: has anyone gotten out of a defaulted student loan in december or January and had a tax offset done to obtain the amount owed for student loan from tax refund? Or would they only offset my refund if my student loan is still defaulted?


And once my student loan is out of default and back to orginal lender will the debt collection account(2)s be removed from my credit report since I completed there rehab program?


Sorry if this sounds confusing. 


Credit repair started 5/15
TU 333 EQ 319 EX 324
09/16 TU 509 EQ 472 EX 457
11/16 TU 513 EQ 478 EX 494 01/17 TU 512 EQ 513 EXP 526
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Senior Contributor

Re: Defaulted on student loans

Yes once you complete your rehab amd the new loan servicer picks it up they will remove all collections acct and default notes on credit report , I just finished my rehab and waiting for new loan servicer to pick it up then I plan to dispute all Tradelines that have negative default stats on them , others on here have had much luck with disputing them rather than waiting 60 to 90 days for them to remove it .
Once you are out of default they can't touch your income tax or garnish your wages . I believe I was also told that after 6 payments your wages would not be garnished or no offset would be done , but I could be mistaken . But I know for a fact once you complete the program they can't offset your taxes or garnish bc it's not defaulted anymore .
Message 2 of 2