Paying down SL while in Rehab...What is the danger?
So, I thought I was in good standing with all of my SLs. I have many since I have two Ivy League degrees and co-signed for my daughters' loans. I found out that three of my loans were not with Navient and actually with HESC. When I found out, HESC offered me the oppty to avoid collections and make payments to get them in good standing. While I was going throgh the process of determining my monthly payments, they transferred my loans to Performant. I, since, got into the rehabilitation program and started making payments. With interest, the loans were a tad over $47K. This was showing as a past due on my CRs. I wanted my scores to go up and knew that having a past due amount of $47K was detrimental, so I began making additional payments. Since Sept 2017, I paid the $47K down to $12K. I don't want to mess-up the process because I want all the negative reports aligned to these loans to be removed, upon completion. I know I need to have a balance of $500 to have the loan purchased and I need to leave a cushion for additional months of payment, in case my loan is not picked-up immediately.
My concern is that I have read that interest fees added to some rehabilitation loans are reduced, once the program is complete. I won't hit nine months until May. Then it may take a month or two before the loan is picked-up. If I continue to pay-down the loan in advance, I run the risk of getting the balance so low that if the interest is taken off at the point of completion, they will owe me money and I won't be eligible for the loan. Should I stop making the additional payments, wait until the loan is transferred and then pay-off the loan. My goal for paying it down was to try to avoid the 16% interest they add to the balance at the point of transfer. Any advice is greatly appreciated.
Starting Score: 648 Current Score:723 Goal Score: 780