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Fedloan won't grant retroactive Forebearance

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Fedloan won't grant retroactive Forebearance

Rep at Fedloan told me that because I rehabilitated SL's they can't go back and apply retroactive forebearance on them. Anyone know if they are feeding me the usual "we can't do anything about the past" line they give. Or if it truly is the case. Wanted to get forebearance and send letter disputing to 3 CRA's.

Starting Scores June 2018: Ex 466, TU 454, EQ 455
Current Scores January 2019: EX 636, TU 635, EQ 630
Goal Scores 700+ across all 3
Message 1 of 8
7 REPLIES 7
Frequent Contributor

Re: Fedloan won't grant retroactive Forebearance

May be their policy. You could always speak to a supervisor.
I was granted it but I think they probably knew it was their mistake. I had called and requested forbearance when I had a financial/ medical situation(and I'm sure they have the records), but it was never applied.
When I was healed and back to work, I paid double payments to catch up and didn't even ask about the lates and applying the previously requested Forbearance until after I was paid several months ahead.
I think my being paid up 6 months ahead as well as documentation of financial situation from time of injury helped my case and I'm pretty sure they had record of me calling in and some kid dropping the ball on my original request.
Starting Score: TU 631 - EX 641 - EQ 669
Current Score: TU 676 - EX 672 - EQ 728
Goal Score: 750


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Message 2 of 8
Established Contributor

Re: Fedloan won't grant retroactive Forebearance

This may be true because you rehabbed. If you were to have switched to an IBR before you defaulted they would have likely applied a retroactive forbearance:
"Most customers who cannot afford their standard monthly payment, or have fallen behind
on their accounts cannot afford to make a multi-month lump sum payment to catch up. Yet, a
borrower’s account must be current in order to enroll in IDR. To solve this program requirement,
a borrower often requires a retroactive forbearance applied to his or her account to bring the Past-due account current." ~ Navient.

" A deferment may be granted retroactively. However, it cannot be granted retroactively to begin more than six months before the date the lender receives the request and supporting documentation." - https://ifap.ed.gov/fsahandbook/doc0370_bodyoftext.htm

While you can find mention of the retroactive forbearance with the gov, but as with most it is vague, seems to leave the decision in the hands of the servicers with circumstances that are difficult of not impossible to locate in the actual legislation. They will often point you to your servicer and your servicer will often say no, even if the correct answer is yes.
This might be a battle you will not win. Eventually they will fall off your credit report and since you rehabbed your default will be removed. If you want to spend the time, you could send a bunch of letters to them and maybe they will eventually change their minds. Always speak with a specialist on the phone.
The most help I can give you is probably helping to explain payment plans to you. Income-driven repayment plans are great if you're not high income and/or you plan on getting your loans forgiven in 20 years (25 grad). There are four plans and the lowest only requires 10% of your disposable income (after you subtract 150% federal poverty level). Payments can be as low as $0. Have you selected a plan that works for you?



Message 3 of 8
Frequent Contributor

Re: Fedloan won't grant retroactive Forebearance

I have recieved retroactive Forebearances, but the lates still show.  They claim that I was still late until the forbearance was issued, so it is reported correctly.




Starting Score: 697,722,705
Current Score: See Above
Goal Score: 775


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Message 4 of 8
Frequent Contributor

Re: Fedloan won't grant retroactive Forebearance

Wow. Mine were removed. They told me that technically if they were in forbearance then they couldn't be considered late because no payment is due in Forbearance.
Starting Score: TU 631 - EX 641 - EQ 669
Current Score: TU 676 - EX 672 - EQ 728
Goal Score: 750


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Message 5 of 8
Established Contributor

Re: Fedloan won't grant retroactive Forebearance

Workin4abetterFICO:
Technically this is correct, depending on when you asked. I saw an AVVO post about this.
Basically the latest are valid until the retroactively apply the forbearance. Then they're basically saying instead of "you owed and didn't pay us," you've changed it to "you don't owe us anything." If you didn't owe them a payment, they can't say that the payment was late.
If the forbearance has been approved, all that's left to do is dispute the lates with the bureaus with your forbearance paperwork and they should be removed.



Message 6 of 8
Frequent Contributor

Re: Fedloan won't grant retroactive Forebearance


@Sabii wrote:
Workin4abetterFICO:
Technically this is correct, depending on when you asked. I saw an AVVO post about this.
Basically the latest are valid until the retroactively apply the forbearance. Then they're basically saying instead of "you owed and didn't pay us," you've changed it to "you don't owe us anything." If you didn't owe them a payment, they can't say that the payment was late.
If the forbearance has been approved, all that's left to do is dispute the lates with the bureaus with your forbearance paperwork and they should be removed.

I asked for a copy of all my forbearance requests and recieved it some time ago.  I should try the dispute idea.  It does show zero payment due on all my credit reports currently, but also shows that the accounts are late on those months.




Starting Score: 697,722,705
Current Score: See Above
Goal Score: 775


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Message 7 of 8
Established Contributor

Re: Fedloan won't grant retroactive Forebearance

Workin4abetterFICO:
Perfect!!
Now that it's been fixed, they're actually obligated to report it accurately (not late). If you can't fix it with the credit bureaus, you can file a complaint with the CFPB...but you probably won't need to.
Good luck! 🙂



Message 8 of 8