How to Rehab

[Anonymous]

Hey guys,

i have 4 student loans. I defaulted and they were sold and are defaulted again. add US Education.

A. How do i rehab?

B. Once i get rehab, will all 8 items come off report and new loans go on in good standing?

[SCF]

1) Contact whoever is currently holding your loan, it may be a collection agency or the Department of Education.  If you don't know who has the loans, you can check your credit report or the National Student Loan Data System.

2) Once you complete rehab any collection accounts will be removed.  The defaulted tradelines may be removed, have their lates removed, or just have the default remarks removed.  Unfortunately, the law doesn't require any more than removing the remarks, and not all servicers choose to remove the lates or defaulted tradeline.

[Anonymous]

What the guy above me said is true and works... but it doesn't work with all lenders..

You have to be careful who you rehab your loan with for example I had loans with phea/aessuccess and went through the rehab program ... 6 months later I still havent been able to get old accounts removed - just the default status (which is not helpful) they then duplicated the old accounts listed them as transferred and opened up a third set of accounts under the new aes/suntrust so now I have 3 times the amount of accounts and it didn't help my score at all altho I did get my title 4 rights back it doesnt help cause I own my own business and dont plan on going to school.

to help you understand the impact I have credit accounts with histories up to 7 years and a couple of ccards with 4 years of history and a couple of new ones with less than 25% utilization (just happened to catch me before PIF) my highest score high 677 ... that is as high as ive been able to get with these old account with the default status removed still listed on my credit....

The company I rehabbed with was premier credit and they were suggested by AES... 

Make Sure that account removal ***not just default status removal***  is very clearly documented in your contract. or as an addition to your contract. And research the company that will be handling your rehab by making sure they dont operate like this.