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Finished student loan rehab. Fico score up 57-74 points

New Contributor

Finished student loan rehab. Fico score up 57-74 points

I started my rehabilitation for my student loans 10 months ago.  Last payment was on the October 16th.  Received a alert through various credit monitoring agencies that my Fico score increased.  Experian and TransUnion went from 669 and 689 to mid 740s.  Went to check Credit Karma and it stated that my defaulted  Dept of Education loans were removed from my report. I’m guessing those negative trade lines were deleted.  Received a letter from Fed Loan last week stating they were my loan servicer.  Wondering when Equifax will report that the same as I have the lowest score with them.  Will it report to all credit agencies?


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Message 1 of 13
12 REPLIES
Frequent Contributor

Re: Finished student loan rehab. Fico score up 57-74 points

Hi,
It could be permanent or they could come back. No guarantees because rehab doesn't guarantee removing old lates or tradelines. You'll have to wait and see what they all will do. If it sticks, congrats! If not, you're already on a better path.



Message 2 of 13
New Member

Re: Finished student loan rehab. Fico score up 57-74 points

Congrats! I don't have an answer to your question but your experience gives me hope that my credit score will increase when my rehab is completed. I read various places online that your credit score will not increase much initially since your late payments will still be listed on your credit report. May I ask if your new payments are around the same amount?

Message 3 of 13
Frequent Contributor

Re: Finished student loan rehab. Fico score up 57-74 points

Libprincess:
You should check out the Income-driven repayment plans from the gov. They have a repayment estimator that's easy to fill out, especially if you log in. Just remember to put in your disposable income from your tax information not gross income to get the more accurate, lower amount. Mine usually ends up being lower than the estimator too.
https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action
Another trick is to use your lowest recent paystubs/ timesheet instead of the IRS tool on the online application if the income for that pay period is lower than the rest of the year for whatever reason. It will lower your payments even more, and they will be set for the next 12 months.
If you have any more questions, feel free to ask. :-)



Message 4 of 13
Established Member

Re: Finished student loan rehab. Fico score up 57-74 points

Thats a huge jump and awesome news! I just re-entered into the rehabilitation program myself. Let us know if the score jump sticks!

Message 5 of 13
Member

Re: Finished student loan rehab. Fico score up 57-74 points

Good Luck! I make my last rehabilitation payment tomorrow, so I'll follow along on this journey.. I'll let you know what happens on my end when that time comes, in the mean time good luck and good job!

Message 6 of 13
Frequent Contributor

Re: Finished student loan rehab. Fico score up 57-74 points

Congrats on the rehab/removal and score jump!    When I rehabbed long ago, the negatives were removed, so I will hope for the same for you.



Message 7 of 13
Member

Re: Finished student loan rehab. Fico score up 57-74 points

Awesome news! I finished my loan rehab program last month and they said my loans should be bought back (or whatever) on 01/06. So any day now they should be back to positive and I was hoping to see a pretty decent increase. I didn't expect as much as you received though, so that's great! It gives me hope that it won't necessarily just be a point or two. Those pesky loans are the only negatives on my account right now and it's SO annoying! @

 

Starting Score: about 500
Current Score: 629
Goal Score: 720


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Message 8 of 13
Established Member

Re: Finished student loan rehab. Fico score up 57-74 points

@calyx Is that true that after you did your rehab your negatives were removed?  I have a dept of ed student loan that was rehabbed and consolidated back in 2013, however that student loan is still being reported as greater than 120 days late.  I called experian to dispute that the loan is not currently greater than 120 days late and in fact it was rehabbed and the customer service rep informed me that it is being reported correctly as that was the loan's status prior to being rehabbed and that experian would not entertain a dispute.  When I stated that I wanted to complete a dispute anyway, he hung up the phone on me!  I called Experian right back and reported him, but I was so discouraged, I didn't persue initiating a dispute.  Is he right, or should I call them back.... Just don't know anymore Smiley Sad

Message 9 of 13
Frequent Contributor

Re: Finished student loan rehab. Fico score up 57-74 points


@Dee-1972 wrote:

@calyx Is that true that after you did your rehab your negatives were removed?  I have a dept of ed student loan that was rehabbed and consolidated back in 2013, however that student loan is still being reported as greater than 120 days late.  I called experian to dispute that the loan is not currently greater than 120 days late and in fact it was rehabbed and the customer service rep informed me that it is being reported correctly as that was the loan's status prior to being rehabbed and that experian would not entertain a dispute.  When I stated that I wanted to complete a dispute anyway, he hung up the phone on me!  I called Experian right back and reported him, but I was so discouraged, I didn't persue initiating a dispute.  Is he right, or should I call them back.... Just don't know anymore Smiley Sad


My negatives were all removed a little while after my rehab was complete, but they were removed by the servicer - contact the servicer that had your loan when you went into the default ('gave you the lates' so to speak) and ask them if they'd be willing to remove them since you have successfully rehabbed your loan.  It's not a guarantee (so the CRA should not be involved), but most of the people I know who've had rehabs have gotten their negative information removed.


If all else fails, try a Goodwill letter campaign

Good luck!



Message 10 of 13