I know that many people are battling the issue of loan servicers deleting TLs and late pay marks from credit reports after rehabbing student loans. I had two sets of loans; both sets have been fully rehabbed and I have a full year of on-time payment reporting from the two new loan holders. In each case, the loan rehab servicer has removed their TLs, and the prior loan holders all removed their TLs . . . except one, Sallie Mae.
Section 682.405 of the CFR reads, upon sale of a rehabilitated loan, "The prior holder of the loan must, within 30 days of receiving the notification from the guaranty agency, request that any consumer reporting agency to which the default claim payment or other equivalent record was reported remove such record from the borrower's credit history". The DOE has interpreted that to mean the status of the TL be changed to its post-default condition, but the record of late pays leading up to default remain. I believe that contradicts the intent and the spiriit of loan rehabilitation.
My sitiuation is complicated by the fact that one of the new loan holders is Navient, the spin-off from Sallie Mae. When I disputed the above with Sallie Mae, Navient placed a note on my CR that I was disputing them!
Question is, at this point do I care about the late pays showing on my CR? There are 19 in total, last late pay was October 2013, I have an on-time pay record since January 2015 with both new loan holders -- since the late pay notes are over 2 years old are they hurting my score that much?
