Late student loans

[Anonymous]

" I have a student loan n for $10k that went into collection for being 99 days late.  I thought this was being paid, as I set something up for payment with the previous company that owned it.  Fast forward to yesterday and my score dropped 56 points.  Is there anything that I can do to get the late removed or to recover the points quickly.  Someone suggested that I refinance so that the trade line isn't active and might boost points because it would be an older inactive one. What should I do?"

[Anonymous]

Once your federal loan is late a certain amount of time it defaults. Department of Education owns federal loans, however they have multiple servicer's they used to manage then. So basically if you you set up a payment plan with one, once they were no longer your servicer you'd have to set up a new payment arrangement to avoid default
Federal loans can be removed from default one time through rehabbing. If you refinance, the loan gets picked up by a private lender. You'll lose the privileges of federal loan.
Rehabilitation takes 9 on-time monthly payments. The only quicker option is consolidation. It gives a a new 100% utilization loan. It won't get you as many points back because it didn't remove the default. Rehabbing as also the only chance at getting the lates removed.

[calyx]

When you say "into collections", do you mean default?   if so, definitely rehab - Sabii lined it out for you.

Bringing this account current, whether by rehab, consolidation or refinancing is the fastest way to move past the penalty, but only rehab can remove the default and will bring your account current, which will yield the best results.   The others will just start new accounts, and you will just have to wait for the old account to age off.   You have a major derogatory with a 90day late and/or default, and it will significantly suppress your scores for the 7 years it is present.