REHAB or CONSOLIDATION for MORTGAGE and Overall Best Score

[Anonymous]

I've been on a major credit rebuild for the past 5 months. I've managed to have two collections removed and one CO removed from tradeline. I began in the 556 range and am now 670 across the board. I am currently preapproved with mortgage with MMS of 633 but I have become obsessed with trying to always raise my score. I got a call today about my student loan relief. The agent said I qualified for some sort of program that was a consolidation. I have $76K in SL but only two of them are in default. At this point since I am already approved, should I just wait and address them or should I start the Rehab process or Consolidation process? I obviously want the best score scenario but am not as familiar with what I should do going forward. Looking for any information and advice possible. 

[calyx]

Because you are looking at mortgages, I would go rehab over consolidation.
Rehab will remove the default and you would keep your original opening date - so positive old lines.
Consolidation will start a new tradeline and will hurt your mortgage scores for at least a year.

[wantitgone]

I agree with @calyx. My mother had long ago defaulted on her student loans. They weren't even on her credit reports anymore, but she wanted to go back to college (she's 54, go her right?!) but of course, she was blocked from getting any aid. She recently spent 12 months rehabbing her loans based on her income; she had to pay $5 a month. After she was done, all the loans landed back on her reports, with no bad history and back dated 15 years to 20 years (the original dates of opening). And she's set to begin taking classes this summer!

So absolutley, rehab is the way to go if you want to help your scores!

[Anonymous]

I will definitely do the Rehab route. I'm just now sure who to contact for that. 

[wantitgone]

if they are federal loans, you would want to login to studentaid.gov to see who has your loans and then contact them to ask about rehabilitation. They may also be here: https://myeddebt.ed.gov/  Good luck!