Wow.
I just had the oddest conversation with the DoE. I began rehab 11 months ago on 2 FFEL loans and a Consolidated Direct Loan. I finished the rehab last month, and after a little extra paper work, they said the loans would be picked up soon by a new lender.
DoE removed all traces of my old loans from the credit bureaus. (Credit Scores went through the roof!)
A week later my 2 FFEL loans were picked up by Sallie Mae.
It had been a month, and my consolidated Direct Loan is still sitting there. I called and spoke with a supervisor, and she told me the rehab paperwork hadn't been completed, but that she would expedite it, and that it should be done and picked up in the near future.
I wait 10 days, and call again (today) the lady puts me on hold, and comes back to tell me:
"I'm sorry that nobody ever told you this before, but your consolidated Direct Loan is not eligible for rehabilitation."
Whaaaaat!?!?!?!?
Not eligible for rehab, and I just need to set up a new payment plan for my remaining loan. I've searched the interwebs, but haven't found anything confirming that.
Now, what the heck is this tradeline going to look like when they start reporting again?
Starting Score: 573 (Exp 10/12)
She seemed to be saying it wasn't eligible, because it was a Consolidated Direct Loan.
It's included in the payments I've been making for rehab, and they even deleted the old tradelines once I made my 9th payment.
I'm not sure if the lady really knew what she was talking about, if it wasn't eligible for rehab, or if it just wasn't going to be picked up by a new servicer...
My obvious fear is that when they report the tradeline again, it will include my past derogatory marks.
I think I really need to call back tomorrow and speak with someone more senior.