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So this happened .....

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Anonymous
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So this happened .....

Anyone have this happen?

 

I just started my Rehab with US Dept of Education for 4 defaulted loans. I logged on yesterday to make my 3rd payment when low and behold.....no re-payment agreement showing anymore. I thinking to myself "ok strange". Click around some more and account balance shows $0. Double strange. 

 

I called them today and was told that Nelnet recalled all 4 loans. And that US Dpt of Ed credit reporting would update in 30-40 days. 

 

Im perpleed. Had no idea. 

 

Dont know how or why. Anybody?

2 REPLIES 2
SCF
Valued Contributor

Re: So this happened .....

Did you ask them why?  And what the status of your loans will be once they are back with Nelnet?  Usually, the only other option to get out of default is consolidation - did you apply for a consolidation loan and choose Nelnet as your servicer?

Message 2 of 3
Anonymous
Not applicable

Re: So this happened .....

SCF

 

So sorry, I didnt realize anybody responded to this until I scrolled through this section today. 

 

Yes I called Nelnet and the guy told me they were recalled and he didnt know why either. The letter that I got from Nelnet:

 

(Verbatim) 

 

"We recently transferred the servicing of your U.S. Department of Education (ED) student loan noted above to the Default Management Collection System (DMCS), as it had defaulted due to several months of no payments. However, after your loan transferred, action was taken on your account by you or a third party, which allowed us to recall your loan from the DMCS. Your loan will be returned to Nelnet for Servicing on 04/30/16"

 

The letter I got after that said they are in forbearance with an end date of 05/25/16 and with a Next Payment Due date of 07/24/2016

I havent applied for any consolidations or anything. My focus was purely on credit rebuilding and getting them out of default through rehab. Now with that being said, I have posted several times about these particular 4 loans. Two of which I am convinced Wells Fargo screwed up in a major way. I disputed several times through all 3 agencies. Over and over. Last month, I finally reached out to the Dpt of Ed Ombudsman. But going by the dates on the notices from Nelnet, the recall action took place even before I initiated contact with the Ombudsman group. So unless it had anything to due with my last phone call to Nelnet (wich they repeated what I was already told of course- "they didnt do anything wrong other than one erroneous credit reporting update that never should have taken place because they were already transferred and closed before then) 

 

So long story short, I still dont know the reason. And I bet its in my best interest to not start digging too deep and leave it be. I dont know how or what took place, all I know is that I no longer have any loans in default now. I checked NSLDS they no longer show defaulted. Your guess is as good as mine? 

 

Message 3 of 3
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