Good News! Rehab Complete! But Questions Remain

[tfkallday]

Hi everyone!  I have successfully completed my 9 month rehab!  If there is any advice I can give you its don't be scared of your loan situation!  Don't put it off any longer.  It is not as bad as you think and is correctable.  GET INTO ACTION!  Now onto my questions.  My loans on the NLDS say "in repayment" as of 8/15/13 .  It says the current servicer is Dept. of Ed/NELNET ... Does that mean that my loans got picked back up by the Dept. of Ed?  When can I expect to see a change in my credit score?  So far just gardening with my secured cards I have gone from an ugly 556 to a still-ugly 595.  The good news is that once the status of my student loans get switched I will have the 22 negative tradelines turn into 22 positives.  I also have 24 straight payments and no lates on my private loans.  Any answers to my questions are much much appreciated. Thanks!

[SCF]

It sounds like your loans were picked up by Nelnet, but you may want to check with your CA and make sure that is what happened and when you can expect to hear from the new servicer.  Your reports will probably take 60-90 days to fully update as the CA removes its information, the default notation comes off the old tradelines, and your new servicer reports your account.

[tfkallday]

Thanks!  I just checked my mail and my loans indeed were picked up by NelNet with my first payment due 10/4/13.  I was reading some horror stories on here that it took some people months to get picked up.  Isnt that quick?  Any additional input from anyone else? Thanks!

[InvincibleSummer3]

My loans were also picked up by Nelnet and it was exactly that fast. They've been easy to deal with since.

I made my first payment to Nelnet and they reported within 30 days. It took another month or so for the old tradelines to come off, so SCF's 60-90 day timeline is right on target.

[tfkallday]

Hey Invincible!  Wow Great news!  First of all congratulations!  Second of all I was wondering if you accepted their payment plan or if you tried renegotiating payment?  My payment is about 300 a month which is a lot if you include my other two loans on top of that.  I am hoping to try to work out an alternative payment method.  

[InvincibleSummer3]

Once I was out of rehab, I then could apply for IBR or ICR repayment plans. It's pretty easy, once you're logged in on the Nelnet website, there's a menu on the left where you'll see "Repayment Options" and then rught under that "Lower my payments". Click on the latter, and it'll take you right into your options for getting your payments lowered.

Good luck! And congratulations.

[tfkallday]

Thanks SO much. I called them and they were SUPER helpful.  I told them I would like to apply for IBR and they told me to send them my tax documents and I would be approved since I met the criteria.  On top of that, they gave me a 60 day administrative forbearance.  This gives me time to get my act together before I can start paying them and allows me to get along well without scrambling.  I am, so far, happy with their service, and am looking forward to my updated credit report.  I actually cannot wait. Thanks for everyone's help I wouldn't have had the courage to move forward without this forum.

[bahbahd]

Warning.  With Nelnet, you want to check both your bank account and online Nelnet account monthly to make sure they are getting and applying payments correctly.  Your experience with Nelnet might be Ok so far. They can be a nightmare when things go wrong.

Two months ago, my auto draft was not randomly not deducted. I knew the next day cuz I now now to watch them like a hawk. Logged in and manually made the payment.  

NEVER just fax in forms without following up within a couple weeks to make sure what ever request was received and acted upon.  In 10+ years I have never received any letters confirming anything from them.  Yes, they have my address. I'll get statements, but nothing else. Sometimes they will deny a forbearance or deferment request and never notify you. You will be late before you know it. You may even talk to someone who might not inform you about your denial. Don't fall into the cycle.  If they have not processed your request, make a full payment before the next due date or all hell will break loose.

This company has a long history of pushing consolidation on borrowers to lock them in with higher interest rates, loan recycling, using subsidy loopholes to defraud the DoE/Fed (and loosing lawsuits over it,) etc.   Many times I've heard and experienced personally "Oh, we did not receive your fax. But your late now, here is your $500 late fee."  This is what happens when they will only process new requests 30 days before your current status is up.  Short window for your requests to "make it" through their dysfunctional system. 

The worst thing you can do is loose your diligence because "they have been good to me so far."    You'll have a long, long

[tfkallday]

Thanks for the advice! I've learned not to trust anyone with this stuff. I have made a habit of calling my loan services every single month just to keep in touch and make sure everything is going smooth and will do that with nelnet monthly. Thanks again! Wish me luck