Rehab Agreement HELP

[Anonymous]

those that have successfully rehabilitated their Fed Student Loans when did the agreement begin & officially complete???

My situation is agreement was signed on 8/8/2021

But first payment was not technically made until 9/7/2021 due to CARES Act

I am having trouble getting the correct information as to when the Rehab will complete.  (9 consecutive months)

The collection company (Default Resolution Group) states the agreement began the date it was signed and fee was waived due to CARES Act so start date of 8/7/2020 however US Dept of Ed states the agreement began when first payment was made the following month 9/7/2020.

I call every month to make sure this is being processed correctly. 

Collection company stated 4/7/2021 was 9th payment and Rehab is complete and they are waiting for transfer of loan out of their office to new servicer BUT US Dept of Ed said I have one more month so 5/7/2021 is when it will be completed.

I know I should go by US Dept of Ed but just wondering if anyone had a similar situation and if their Rehab agreement began the date it was signed or did it start the following month???

TIA

[Anonymous]

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@Anonymous wrote:

those that have successfully rehabilitated their Fed Student Loans when did the agreement begin & officially complete???

My situation is agreement was signed on 8/8/2021

But first payment was not technically made until 9/7/2021 due to CARES Act

I am having trouble getting the correct information as to when the Rehab will complete.  (9 consecutive months)

The collection company (Default Resolution Group) states the agreement began the date it was signed and fee was waived due to CARES Act so start date of 8/7/2020 however US Dept of Ed states the agreement began when first payment was made the following month 9/7/2020.

I call every month to make sure this is being processed correctly. 

Collection company stated 4/7/2021 was 9th payment and Rehab is complete and they are waiting for transfer of loan out of their office to new servicer BUT US Dept of Ed said I have one more month so 5/7/2021 is when it will be completed.

I know I should go by US Dept of Ed but just wondering if anyone had a similar situation and if their Rehab agreement began the date it was signed or did it start the following month???

TIA

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Similar thing happened to my SO. I believe it also started the following month for him. He signed up in April, so conpletion was Dec, but they called him in Jan stating it was finally done? 

It really is a non-issue at this point because his FedLoans still are not reporting. We were notified they were transferred back to FedLoan, could create an account and look at the loan info, and choose to start making payments if we wanted to opt out of the Cares Act forebearance, but they just simply will not report lol

Honestly, for us, not the biggest deal because that is 33k worth of debt not reporting and 4 less accounts with balances, and he had a second set of defaulted SLs that he rehabbed and are reporting (since they are FFEL loans and do not qualify for the Cares Act forebearance), meaning his age of accounts and age of oldest account is boosted significantly, but not entirely what it was until the FedLoans start reporting, and he now has open/active installment loans (and under $10k between the 3).

So since payments aren't due yet because of the forebearance and if you have not actually made 9 payments (or not had to make 9 payments due to Cares Act), then there is little to worry about because I do not believe it is going to change the repayment situation (since they are in forebearance - you will not be reported as late because there is no payment due) nor the (lack of) reporting situation. They will notify you when they are transferred back to the servicer or to a new servicer.

[Anonymous]

This exact same thing happened to me. My agreement said first payment was on July 9th 2020 my loan agreement was on July 10th. The collection company said I was done on March 9th however DOE did not count July 9th as my first payment they counted August 9th as first payment even though the agreement clearly says starting July 9th.  It was really frustrating and added a whole month to my rehabilitation! Doe said I was done on April 9th there was nothing I could do I just had to wait another month. Now it's finally done!

[Anonymous]

Thank you for the info.

My concern is when I should expect the default status and all those late payments (post-default) to come off of my credit reports. I only have late payments on this student loan after it entered default so I am patiently waiting for everything to update but I guess it will be another month until US Dept of Ed recognizes this as a completed rehabilitation and then they stated it could take up to 60 days from that point for the credit bureaus to update on their end.

I want to apply for a mortgage but I am waiting on this as this is the only negative at all on my reports.  

[Anonymous]

Thanks that is great you are finally done!

Do you know how long until your credit reports will reflect that you are not in default? 

I am so on top of this for that very reason I just want these negative late payments that have been added on since I got into default to come off my credit reports. 

[Anonymous]

I don't know when but I'm waiting to apply for a loan as well and check everything daily. My eddebt account says closed and yesterday in student aid account listed nel net as my servicer instead of the collection agency! I did try to make an account with nel net but it would not let me it's probably too soon. I just can't wait to get my credit report fixed! 

[Anonymous]

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@Anonymous wrote:

Thank you for the info.

My concern is when I should expect the default status and all those late payments (post-default) to come off of my credit reports. I only have late payments on this student loan after it entered default so I am patiently waiting for everything to update but I guess it will be another month until US Dept of Ed recognizes this as a completed rehabilitation and then they stated it could take up to 60 days from that point for the credit bureaus to update on their end.

I want to apply for a mortgage but I am waiting on this as this is the only negative at all on my reports.  

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They already had aged out before rehab was completed, so I am sorry, I forgot that aspect.

Thing is, there is zero guarantee the lates will be removed. They only agree to remove the default marks and the collection accounts. The original accounts have a possibilty of retaining the lates and there is no way to force them to remove them. I have seenpeople try to dispute them and they added additional, valid, lates. Meaning they usually start at 90d (or 60d) and they tack on the 30d and 60d lates and possibly other lates that has not been reported. 

It technically does not "default" until it stops reporting lates, the balance is written off to $0, and the collections accounts are opened in their place reporting "CO" every month. All the lates on the original account can remain.

[Anonymous]

I am hoping that the information they told me is correct I literally call every single month to get clarification bc even though my credit score is over 700 this student loan shows negative marks & a new late payment is added each month. 

They told me that all the late payments AFTER I entered default would be removed only & lates BEFORE default status stay.

My credit reports only show late payments from after I went into default all my late payments are from 2020-present. Prior to 2020 (and entering default) my student loan was with a different servicer so I disputed that and was able to get it removed from my credit reports. The current servicer, US Dept of Ed is new only added to my credit in 2020. 

This is directly from the Federal StudentAid.gov website:

"If you rehabilitate a defaulted loan, the record of the default will be removed from your credit history. However, your credit history will still show late payments that were reported by your loan holder before the loan went into default."

But I see what you are saying and I really hope that the info from them directly is true bc it's driving me crazy!!

[Anonymous]

@Anonymous well if only US Dept of ED is reporting, which should be reporting "CO" every month (which is not a new late, as "CO" is not a late), those should be deleted. If you already got the original loans removed, then you will have no lates, because you currently have no lates. What you have is a delinquency (different than a late, crazy, I know!) reporting every month because they are being updated monthly, so they keep your scores depressed with every update.

So, yes, if the original loans are gone, the US Dept of ED collection accounts will be removed entirely.

I hope that is a little clearer, but still about as clear as mud, I am sure. The intricacies are mind numbing!

Having *all* my defaulred SLs removed and new one's reporting gave my score an overall boost of 100+ pts, but I had much lower scores than yours, to start. It will be piecemeal, depending on a few factors like, were the SLs your oldest accounts or do you have older accounts? The increase of age of accounts was worth a tremendous amount of points once they started reporting, and the fact that I had zero open installment loans, so that helped there, too. Then losing the last default mark was also worth a boat load more points (70pts, in my case) bringing me over the 700 mark, finally, and only remaining baddies are 3 x collection accounts! So I feel strongly that I will have excellent scores once those collections are dead and gone by year's end!

It will defeintely be credit profile dependent, but wait until every thing is sadi and done (not only defaults being removed, but SLs reporting again) to see where you really stand because it can be an emotional roller-coaster watch the scores go up and down with each change the SL servicers make!

I am still waiting for the end result of my SO's SLs coming out of rehab and reporting (still only on 2 of 3 bureaus and only 1 set of loans, none from FedLoan, yet - again, rehab finished in Dec/Jan, depending who you ask). He saw a good boost too, but still has a couple baddies we are waiting out/working on, so no final result.

Good luck and please keep us posted on what happens because it will probably help other's in this situation currently or in the future!

[Anonymous]

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@Anonymous wrote:

@Anonymous well if only US Dept of ED is reporting, which should be reporting "CO" every month (which is not a new late, as "CO" is not a late), those should be deleted. If you already got the original loans removed, then you will have no lates, because you currently have no lates. What you have is a delinquency (different than a late, crazy, I know!) reporting every month because they are being updated monthly, so they keep your scores depressed with every update.

So, yes, if the original loans are gone, the US Dept of ED collection accounts will be removed entirely.

I hope that is a little clearer, but still about as clear as mud, I am sure. The intricacies are mind numbing!

Having *all* my defaulred SLs removed and new one's reporting gave my score an overall boost of 100+ pts, but I had much lower scores than yours, to start. It will be piecemeal, depending on a few factors like, were the SLs your oldest accounts or do you have older accounts? The increase of age of accounts was worth a tremendous amount of points once they started reporting, and the fact that I had zero open installment loans, so that helped there, too. Then losing the last default mark was also worth a boat load more points (70pts, in my case) bringing me over the 700 mark, finally, and only remaining baddies are 3 x collection accounts! So I feel strongly that I will have excellent scores once those collections are dead and gone by year's end!

It will defeintely be credit profile dependent, but wait until every thing is sadi and done (not only defaults being removed, but SLs reporting again) to see where you really stand because it can be an emotional roller-coaster watch the scores go up and down with each change the SL servicers make!

I am still waiting for the end result of my SO's SLs coming out of rehab and reporting (still only on 2 of 3 bureaus and only 1 set of loans, none from FedLoan, yet - again, rehab finished in Dec/Jan, depending who you ask). He saw a good boost too, but still has a couple baddies we are waiting out/working on, so no final result.

Good luck and please keep us posted on what happens because it will probably help other's in this situation currently or in the future!

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yes you are correct it is reporting as a "CO" each month which seems like a late payment bc when I log on to my Experian account is falls under the "accounts ever late" category which is frustrating since I am technically making the required payment each month. But from what I understand you get 0 credit for the rehabilitation payments only credit once the process is completed

that is amazing you saw 100+ point increase!

I am not anticipating a credit boost that high I learned early on when I started repairing my credit not to get my hopes up! but I am looking forward to having the negative marks removed since this is the only delinquency on my credit profile. even with a decent credit score I get denied credit simply because I have had this negative account.

this account is not my oldest and I do have one other installment account on my profile.

do you know what the date opened is once the loan is transferred out to a different servicer?

does the loan go back to the original open date in my case 2012 or will it show an open date of when it was transferred which would be 2021?

curious what happened in your case.