Ongoing Student Loan Rehab

[sixfour1]

About seven months ago I rehabed my student loans and I have made my seventh payment all on time. This shows up on all three credit reports. Two of the three had my old student loans on them Experian and Transunion.

Both deleted the Direct Loans SVC System, but Trans Union has listed the US Dept of Education as having new information. Will I need to contact US DEpt of Education to get this deleted I have the document where they deleted from Experian.

[Whitneyy]

More than likely. I had to contact Sallie Mae OVER and OVER again to get it to look right on my credit reports and it finally worked. Good luck. 

[pizzadude]

Moved to Student Loans for better visibility

[Anonymous]

I agree with Whitneyy!  Sallie Mae is a great institution overall.  I have found them to be helpful and friendly.  However, they aren't the best at performing tasks and following up!!  And, yes, I believe that you have to contact the lending institution to have it removed.  Because they were the first ones to put it on there in the first place.  Remember, the credit bureaus are simply reporting arms for the most part.  

You mention the word Rehab.  I am assuming that you had some serious late payments at one point and now, because you are an honest and sincere person, you are working with the Rehab department to reinstate the loan under their umbrella, as opposed to a collection agency?

I had a similar situation with Key Bank (Tough group of folks to deal with).  They wrote me off and placed me for collection.  I then went to loan rehab, got the loan reinstated with Key Bank and was making regular payments of $300 per month.  (Interesting note:  After I made that arrangement, there was no monthly interest or additional fees involved.  Every $300 payment I made came right off the principle.)

So I just paid the loan off.  I was given an option to "settle".  But felt that paying the loan off would bode better for me.  When I did that, my score went up by 18 points.  And now, when a future creditor looks at my record they well rest assured that I am someone who doesn't "settle" but someone who pays the full amount back.

Another note I have for you is that, if there is ever a time when you cannot make those monthly payments, Sallie Mae will work with you and offer you to "deffer" the loan payments for a period of time.  Good part of that is that you don't have to make payments for the agreed upon time.  Bad news is that you are paying accrued interest the whole time.  So when payments kick in, they usually demand the first payment and a payment on the compiled interest...which can prohibitively high for your budget.  So be careful there, and be aware.

Best idea ALWAYS is to do exactly what you agreed to do.  Make ontime payments and get the loan paid off...and you will see that score go up!  Good Luck

[Gracie_217]

This week I make my last payment. I have 2 line a total of 4900.00. They are the only 2 deragatory makes on my report. Wondering how long it takes report to update? Is there a certain day they report? Also if anybody has seen an increase on credit report?

[Anonymous]

Hi there! I have a similar situation with Key Bank and had a few questions for you. Was yours a private loan with them?

Also, when you agreed to pay them $300/month, did that put the loan in rehabilitation? I also agreed to $300/month with no interest. But they told me it would not take the loan out of default and it would still affect my credit score. Were you able to work out a rehab on your loan with them? Many thanks in advance for your help!

[SCF]

Private loans are not eligible for rehab - that program is only for federal loans.  With defaulted private loans, you have to negotiate any pay-offs and removals of negative reporting the same way you would with other collection accounts.