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Only 4 more payments till rehab is complete!

Mjhall85
Frequent Contributor

Only 4 more payments till rehab is complete!

So I am getting close to completing my rehab, on my credit report the Us Dept of Ed keeps updating monthly as a CO  and the  Fed Loan servicing hasn't updated since 2017. So the Fed loan servicing once I complete rehab should fall off and the US dept of Ed should start reporting positively then ?

Chapter 7 filed 2/3
Discharged 6/30

Fico 8
EQ 681 TU 671 Ex 665
Fico 4 TU 690 Fico 5 702 Fico 2 693
Message 1 of 15
14 REPLIES 14
Caprisun987
Frequent Contributor

Re: Only 4 more payments till rehab is complete!

@Mjhall85 Someone can correct me if I am wrong, but I believe the USDE collection account is what is removed and the original trade line is updated as current. There is a possibility that the original lates may be removed, but its just as likely that they won't be.

 

Whatever you do, don't dispute the original trade line. People have tried to dispute the lates to get them removed only to find additional 30, 60, 90 day lates added to the trade line. 

Message 2 of 15
Mjhall85
Frequent Contributor

Re: Only 4 more payments till rehab is complete!

thanks for your reply.Well the current tradelines shouldn't be reporting as they are in forbearance due to covid so no lates should be reporting is my thought. Guess we will see in about 4 months what happens. Maybe I will get lucky and they'll wipe them and put new tradelines,luckily the payment history on them is pretty good so once it's current hopefully I get a nice little boost in fico as I won't have a collection on there,well 8 collections haha

Chapter 7 filed 2/3
Discharged 6/30

Fico 8
EQ 681 TU 671 Ex 665
Fico 4 TU 690 Fico 5 702 Fico 2 693
Message 3 of 15
Mjhall85
Frequent Contributor

Re: Only 4 more payments till rehab is complete!

another question, I plan on paying my 40k off within the year,can I make payments on one loan of say 3,000 and pay that one off before the others and keep doing that or do they just put the payment where they see fit ?

Chapter 7 filed 2/3
Discharged 6/30

Fico 8
EQ 681 TU 671 Ex 665
Fico 4 TU 690 Fico 5 702 Fico 2 693
Message 4 of 15
Slabenstein
Valued Contributor

Re: Only 4 more payments till rehab is complete!


@Mjhall85 wrote:

another question, I plan on paying my 40k off within the year,can I make payments on one loan of say 3,000 and pay that one off before the others and keep doing that or do they just put the payment where they see fit ?


If you're asking about post-rehab paydown, your new lender will have rules about how extra payments are applied if you don't specify, e.g. to unsubsidized before subsidized, higher rate before lower rate, higher balance before lower balance, etc.  (These rules might be the same across all federal SL's?  Not sure.)   But you should also be able to request that the payment be applied to a particular loan and bypass those rules.

 

One other thing to be aware of is that if you have any federal SLs that are consolidated (which loans coming out of rehab wouldn't be), payments need to be made in such a way as to keep the post-payment balances proportional or you'll be required to make another extra payment to "catch up" the other loans in that consolidation. (I found this out the hard way. Smiley Frustrated )


Message 5 of 15
Mjhall85
Frequent Contributor

Re: Only 4 more payments till rehab is complete!

I appreciate the insight well these are all still original federal loans I never consolidated them or anything. I guess I will have to contact my servicer once out of rehab. Once finished I have them all in a spreadsheet so I can tackle them one at a time as long as they allow it.

Chapter 7 filed 2/3
Discharged 6/30

Fico 8
EQ 681 TU 671 Ex 665
Fico 4 TU 690 Fico 5 702 Fico 2 693
Message 6 of 15
calyx
Super Contributor

Re: Only 4 more payments till rehab is complete!


@Mjhall85 wrote:

I appreciate the insight well these are all still original federal loans I never consolidated them or anything. I guess I will have to contact my servicer once out of rehab. Once finished I have them all in a spreadsheet so I can tackle them one at a time as long as they allow it.


While servicers all have rules about how over-payments apply, most of them (to my knowlege) will let you choose how to apply overpayments if you contact them (some of them let you do it online within the payment page, as well).



F8 EQ: 809 | EX: 802 | TU: 805 | Accounts: 1/6 4/12 6/24
Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 7 of 15
ChiknNuggz
Regular Contributor

Re: Only 4 more payments till rehab is complete!

Congrats buddy. After your loan is outta rehab and out of default definelty stay in touch with your new loan servicer to see how making large payments would work.  I 3 payments left myself and cannot wait lol. From everything ive read and researched on different forums once the default it taken off your credit report you should see a nice raise in your credit score especially if you have no other defaults on your report.

Message 8 of 15
Mjhall85
Frequent Contributor

Re: Only 4 more payments till rehab is complete!

Yeah it seems like it has taken forever but its getting near the end now. Luckily on my credit report my only derogatory is my chapter 7 so I am hoping I get a little boost once they are out of default,it be awesome if it boosted me to the 700's but guess we will see in about 3 months roughly.

Chapter 7 filed 2/3
Discharged 6/30

Fico 8
EQ 681 TU 671 Ex 665
Fico 4 TU 690 Fico 5 702 Fico 2 693
Message 9 of 15
Mjhall85
Frequent Contributor

Re: Only 4 more payments till rehab is complete!

Rehab is officially completed! Seemed like a long road but worth it. They said call back next Monday and should have info for my new servicer,fingers crossed all goes smooth and I see a nice bump in score I am hoping as my oldest SL is from 2010 so it will help age my credit.

Chapter 7 filed 2/3
Discharged 6/30

Fico 8
EQ 681 TU 671 Ex 665
Fico 4 TU 690 Fico 5 702 Fico 2 693
Message 10 of 15
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