Student Loan Rehab help

Anonymous · ‎03-15-2021

Hey yall,

whooo there is a lot of information on here about SL and rehabbing loans. I am not sure but I have a unique question. 😁😁

My husband entered a SL rehab program in Sept 2020. He has 124k in student loans (grad and undergraduate degree). NONE of his student loans are reporting on his credit reports. We are trying for a FHA loan within the next 6 months. Credit score; 598 ex, 612 tu, 600 eq.

Once the student loan rehab program is complete, how will the student loan appear on the report (since nothing is reporting now) . Will his AAoA change?

All of his loans were with Naviant now they are with NCS (National Credit Services, not on reports. They have had the accounts for approx 2 years, but never reported). All loans are Federal loans.

Any help is greatly appreciated.

Anonymous · ‎03-16-2021

@Anonymous wrote:
Hey yall,
whooo there is a lot of information on here about SL and rehabbing loans. I am not sure but I have a unique question. 😁😁

My husband entered a SL rehab program in Sept 2020. He has 124k in student loans (grad and undergraduate degree). NONE of his student loans are reporting on his credit reports. We are trying for a FHA loan within the next 6 months. Credit score; 598 ex, 612 tu, 600 eq.
Once the student loan rehab program is complete, how will the student loan appear on the report (since nothing is reporting now) . Will his AAoA change?

All of his loans were with Naviant now they are with NCS (National Credit Services, not on reports. They have had the accounts for approx 2 years, but never reported). All loans are Federal loans.
Any help is greatly appreciated.

@Anonymous

So theres no old tradelines from the original servicer? I had National also and they didnt report on mine BUT the department of edu did. What I have found is the department of edu contracts them to handle the collection but its the department of edu who actually collects the payment. If the department of edu is on the credit report, that is the collection account. After rehab is complete that will be deleted. when you have a new servicer they will report their tradeline on the report and it will be current. My understanding is it will back date to the original loan so it wont look new. but it also wont show the lates. I am currently waiting for my new servicer to report. could be a 60 to 90 day process.

calyx · ‎03-17-2021

Did he default 7 years ago? Although the HEA states that unpaid student loans should be reported beyond the usual FCRA 7 year thing, they tend to fall off anyway.

If they're old - it's very unlikely that any collection account or derogatory information will be reported when the rehab is complete. It is still possible for lates to be reported, but not likely. After rehab, the loans will be reassigned to a servicer, and at some point they should report as an open tradeline backdated with the original opening date. IF these loans are older than most of his tradelines, yes, it will improve/lengthen/age his accounts, thicken up his file, and help his score. Be aware that these rehabbed/reassigned lines can take 3 or 4 months to report once the transfers and everything is complete. It's definitely not fast.

Happy practitioner of AZE7or8or9or10 | Team Finances > FICO

ChiknNuggz · ‎03-19-2021

Ive completed rehab and havd dept of edu removees from my reports now waiting for new tradelines but am nervous couldd drop score. My original loans were 2014 and closed out n 2016 for 5K. Thing I'll see a drop or gain in score.