Rehab taken over by Navient after 9th Payment. What to expect?

[Anonymous]

Hey everyone, I've been a casual reader of the forum for about a year, and have not read many good things about Navient. I was paying the five dollar minumum with the previous collector of my defaulted student loan until i got a letter from Navient after my 9th payment with the same 5 dollar payment structure. Does anyone have the same experience and if so, what happened next, and how is it going so far as far as credit increase/decrease, lates taken off etc.? Thanks for any replies in advance.

[calyx]

Navient should be contacting you (most likely by mail) just setting up the payment plan.  I'm curious about the $5 payment from Navient, after rehab people are usually put on the standard payment plan, which would be much more than the $5, so you may want to contact them to be sure.   If you are put on the standard plan and you want to go for forgiveness or be put on one of the income driven plans, you'll have to contact them for eligibility (it depends on the loan/s on whether or not you're eligible for certain payment plans).

As far as your credit - the default will be removed, so your loan(s) will be brought current with the original date that it was taken, giving you older lines.  Those older, positive lines should help your credit score.   Whether or not the lates are removed  is up to the servicer (whoever the old servicer was, not Navient, unless they were the original).    You can ask them to goodwill the lates, and if they refuse, you'll just have to use the 7 year 'fall off' rule to determine when you'll get the biggest boost to your score.

^ All of the above score talk is assuming that the student loans are your only derogatories.  It gets complicated when there are many, and the general rule is that you'll get the best boost when the last negative one is taken care of/removed.

[Anonymous]

Thanks for the reply. I just got off the phone with a Navient customer rep after asking for an amortization, so to speak. I still can't believe what she jus told me. I'm due to pay 5 dollars a month until 2029, thereafter it will be 3 bucks and some change. My meager earnings and destitude laden paychecks have helped me out for the first time. Question is, should I contact the original servicer,  Reliant Capital Solutions, about taking off the lates etc., of should I give it time?

[calyx]

I would give it about 6 months and then ask them.   It took about 4 months for everything regarding my student loans to report correctly when they were transferred from one lender to another, so I always try to give 4-6 months.

After that, begin the harassment goodwill attempts!   

[Anonymous]

First, I think you need to get more information from Navient. They are notorious for telling people something on the phone and not meaning a word of it. You have to get them to pin things down because if they mess up your loan payments, they won't really be held responsible.
What is the name of the payment plan? Standard repayment or maybe an Income-driven repayment plan such as IBR or REPAYE? Will it lead to forgiveness?
It would be very helpful here if you were to list your loan amounts and types. Income too if you're comfortable.
As for the late payments, I would wait a few months after your loans have been transferred. Things can take a bit of time to rearrange. If they don't fall off in the rehab, you could always try a dispute with the credit bureaus using the rehab completion letter. Quite a few people had success with that.
Hope this helps.