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HELP! -Questions about after loan rehab for student loans is completed

KitKats
Established Member

HELP! -Questions about after loan rehab for student loans is completed

Next month is my last payment for my rehabilitation. ( I thought it was this month as the collection agency told me when I 1st made my agreement ( june 2020) that the month of june would count, though my 1st payment wasnt until july). I was only able to get ahold of the department of edu through email and they said no I have 1 last payment left.  I dont know how others were  able to speak with someone on the phone as when I call there is no option for that.

 So.. my questions are.. I know the default trades get deleted, But the old servicer ( CRS until 2024) will indeed stay? right now they show 0 and say transfered. Will they be updated to a paid as agreed or still just say transfered. Also is there a way to get them removed or am I stuck with them until they fall off?

Also, has everyone seen a pt increase on CR onces everything finally updates? Or has some peoples dropped? im nervous mine will drop because this will make my balences drasticly go up. how will this effect my ratio? Im rebuilding my credit and my SL are the last to be fixed. 

Message 1 of 5
4 REPLIES 4
refereeguy1390
Valued Member

Re: HELP! -Questions about after loan rehab for student loans is completed

Have you been making payments or just getting credit under the cares act

Starting FICO8 (1/21): EX 567 | EQ 597 | TU 620
Current FICO8 (4/21): EX 615 | EQ 630 | TU 647
Message 2 of 5
KitKats
Established Member

Re: HELP! -Questions about after loan rehab for student loans is completed

making payments.

Message 3 of 5
LaHossBoss
Senior Contributor

Re: HELP! -Questions about after loan rehab for student loans is completed


@KitKats wrote:

Next month is my last payment for my rehabilitation. ( I thought it was this month as the collection agency told me when I 1st made my agreement ( june 2020) that the month of june would count, though my 1st payment wasnt until july). I was only able to get ahold of the department of edu through email and they said no I have 1 last payment left.  I dont know how others were  able to speak with someone on the phone as when I call there is no option for that.

 So.. my questions are.. I know the default trades get deleted, But the old servicer ( CRS until 2024) will indeed stay? right now they show 0 and say transfered. Will they be updated to a paid as agreed or still just say transfered. Also is there a way to get them removed or am I stuck with them until they fall off?

Also, has everyone seen a pt increase on CR onces everything finally updates? Or has some peoples dropped? im nervous mine will drop because this will make my balences drasticly go up. how will this effect my ratio? Im rebuilding my credit and my SL are the last to be fixed. 


I feel like they tool an extra month, too. They did this to my SO. Started in April and ended in December. Called the servicer and kept saying everything was good (you don't call the US Dept of ED, you call the servicer/CA that is handling the defaulted loans and who you set the rehab up with), but then they called in mid- Jan that it just finished.

 

Anyway, the original loans will likely stay, with all the lates, until they age off. A few get lucky and the original loans come off along with all the lates. There is no way to force them to come off.

 

You should have 2 sets of SLs reporting: 1) the original loans and 2) the defaulted loans (US Dept of ED).

 

One set will show $0 and the "new" back dated loans will show the balance you will be paying off. Nothing gets doubled, and that is how loans work, they must report the balance(s) accurately, but it is not "doubled". If it always showed $0 (which I find odd), they still must report the balance(s).

 

1) the defaulted loans with a balance will come off

2) then the original loans that defaulted will remove the default marks (not the lates) or the entire account(s) will be removed

3) lastly, the "new" back dated loans with the new servicer will report.

 

You will see your scores change each step of the way listed above. The last steo, the age of the accounts should help you, depending on how old they are. Installment loans are not calculated like revolving credit and are not scored the same.




Starting Score: 2•20 | EQ 550 | TU 498 | EX 505
Current Score: 7•21 | EQ [F8 645] [F9 651] [EQ5 684] [VS3 630] | TU [F8 717] [F9 692] [TU4 723] [VS3 643] | EX [F8 714] [F9 675] [EX2 681] [VS3 674]
Goal Score: 670 [X] TU [X] EX

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SO Starting Score: 2•20 | EQ 502 | TU 484 | EX 521
SO Current Score: 7•21 | EQ [F8 670] [F9 622] [EQ5 706] [VS3 639] | TU [F8 676] [F9 673] [TU4 652] [VS3 620] [VS4 598] | EX [F8 707] [F9 711] [EX2 680] [VS3 656]
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Message 4 of 5
KitKats
Established Member

Re: HELP! -Questions about after loan rehab for student loans is completed

I think the department of edu did do an extra month. my servicer told me when I made the agreement ( end of June 2020) that June would count as the 1st month. I didnt call to make my 1st payment until the 1st week of July. I spoke with my servicer who confirmed I have completed rehab. so I contacted the dept. of edu to see if I could get things moving faster. And they told me im only at 8 payments so I have 1 more. ( im thinking maybe they really dont count the month you make your agreement).  I didnt know installment loans effected your score differently then other things. I am hoping to get an increase.

Message 5 of 5
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