Getting the run around about REHAB

[asgor]

I made my last student loan rehab program with Direct loans payment in August got sold to Sallie Mae the same month.

Made my 1st Payment to Sallie Mae in September had old tradelines posting negative along with new tradelines.

Disputed the old tradelines and they got completely wiped off instead of updateding the past 10 months of payments I made while in rehab

I called Direct Loans and they said they do Completely wipe out payment history and not report any payments while in rehab.

BUT I read on her a different story. They say they don't refelct any past payments because its not to repair credit.

Any tips I Could get on how to handle this would be greatly appreciated.

[Rikku]

Let me make sure I understand this correctly: you rehabbed your defaulted loan, it is now serviced by SM, and you disputed the old TL and it was deleted completely? But you want the old TL back because it will show ten months of positive payment history?

I'm not an expert on loan rehab, but my understanding is that the loan is still in default status until the rehab is completed - thus, you are not "paying as agreed" while you're making the rehab payments. It may sound like splitting hairs, because you're paying as agreed upon for the rehab program - but you're not paying as agreed when you signed that original promissory note for the loan that you defaulted on. Make sense?

Don't sweat it - you got a pretty awesome deal for a second chance. Rather than having a defaulted loan on your CR for seven years and having your wages and tax returns garnished to pay your obligation, you get to start again from scratch. With the removal of the old TL, you have a clean slate - and if you keep up your good payment habits, you'll have ten months of good payment history again in no time.

[Involver]

Yeah im really curious to see how this is going to play out for me. My rehab should be completr in April and my defaulted loan is set to fall off of my CR in May so I'm not even going to ask about deleting them. I will definitely lobby for backdating my positive payment history though. While the AAoA drop would hurt if the original accounts fall off without any positive payment history i am far more concerned with having the default / collection off of my record.