REHABING Defaulted Student loans that have fallen off Credit Report.

[MidnightJester]

Has anyone started a Loan Rehab with it off your credit file already?? Does it stay off till picked up from bank?? Does it appear as good payments right away?? Does it show good payments with Default status till rehab is done??

IF you started rehab with it already on credit reports its a different situation

[superdad]

I would be courious to this question also.  I have 18k in SL and they are no longer on my CR.

[SCF]

During the rehab, you make payments directly to the CA that is collecting the loan - so if they aren't reporting now, I would guess they would not just start reporting because of the rehab, but I also think that they can report.

Once you complete the rehab, any reporting by the CA disappears, and is replaced by a fresh tradeline backdated to the original open date for your loan.  Any remarks relating to the default would also disappear, but it sounds like in your case, they've already fallen off due to age.

The nice thing about rehab is that even if the CA does decide to start reporting again, it would be gone after you complete the 9 payments and the loan is sold back to a servicer.

[MidnightJester]

*update* My accounts(2loans) have been returned to MYEDDEBT the student loan resolution group. I think i lowered my intrest and amounts owed to such a low level the collection company had no/little value in it to them. I head they can only collect penalty and fees based on your intrest owed or possibly total bedt owed

It is still off my 3 big CRA's. That is good : )

I sent MYEDDEBT $20.00 through a 1-time credit card payment. Reason being I was hoping to prevent it from going back to another collection company and having to deal with them. Dealing with MYEDDEBT is a much better situation. This will be the first test of what happens with sending any money to MYEDDEBT. I will tell you if they report to my CRA's at all. They next step will be starting REHAB in a month or two. I will keep you updated to that as well and how it slowly reappears on my CRA from not existing at all.

[martinsoka17]

When I rehabbed, the CA I went through did not report any of my payments I was making. I had three TLs from the original SLs I took out in 09/10, showed as "closed", then 3 more showing all the lates (30,60,90,120, ect). All in all 6 TLs. I'm in limbo right now, since I completed rehab on 4/21/14, and my loans were picked up by Sallie Mae, but Sallie Mae hasn't reported my new TLs yet. Even during the limbo, the CA didn't report anything. So I think you'll be ok, especially since you are going through MyEdDebt

[MidnightJester]

Now I have a new situation I am facing as I see things. WHAT happens if anyone knows when they pop up a new TL for the 2(Sallie Mae loans) What did they look like?? I assume they will go back to sallie mae since I never consolidated. With the new TL do you think If they backdate it the old TL which dosent exsist would copy over its LATES and DEFAULT to the NEW TL.

What does the new TL look like with people that have completed REHAB?? Are there any initial DEGROGS listed on new TL?? 

[MidnightJester]

UPDATE wooooooooooo, Here we go.

Rehab has started. My first Due date is June 28th 2014. $35 dollars a month. after that 8 more to go. Credit reconstruction is fully in GO mode. Still not a hint in any CRA reports about this. I will see how things go. I think they wont even know till the old sallie mae picks up my loans, or another loan company.

[MidnightJester]

First REHAB payment has been made and posted to MYEDDEBT. Just for people know I made the payment online by credit card on the 18th and it took till 27th to fully post online. (8 Work days, 10 days total)

*** It does post as original payment date that I sent it in of June 18 it just it takes 10 days to show up ***

[Cookie2120987]

I might have missed it and if I did I'm sorry, but we're these collections recent?  Or by them falling off do you mean over 7 years later? After mine went to fed loan servicing they turned into two new accounts that reported one mo th as good than closed as paid, than a THIRD set appeared as a new line under nelnet reporting once I finished rehabilitation

[MidnightJester]

Well the Loans themselves were 19 years old, way past fallen off. The CA collection on behalf of govn't student loans were as as recent as last year but they werent reporting to the CRA since it was long fallen off my credit reports. I was able to pull the collections from the CA by using part of the loan collection rules against them. I knocked my intrest owed so low through them taking my tax refunds that the CA had no money to earn from it. Apparently the collection fees they earn are based apon your loan owed and intrest owed especially. With no intrest owed they could collect barely anything in fees from me and sent it back or MYEDDEBT student loans called for it back. They lost out and removed 955 in collection feees from my account : )