Student Loan Rehab

[Mjhall85]

So i just got my bankruptcy done and discharged,next is to settle my student loans and be in good standing. Doing a rehab for the 9 months that brings them out of the default status does it remove any lates ? I have read about them and I got mixed answers on this.I had some lates from around 2015 so they fall off in just under 2 years anyways.Any insight on rehabbing is appreciated.

thank you!

[Anonymous]

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@Mjhall85 wrote:

So i just got my bankruptcy done and discharged,next is to settle my student loans and be in good standing. Doing a rehab for the 9 months that brings them out of the default status does it remove any lates ? I have read about them and I got mixed answers on this.I had some lates from around 2015 so they fall off in just under 2 years anyways.Any insight on rehabbing is appreciated.

thank you!

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So with rehab, the CAs will be removed when you complete rehab. As far as the old/original TLs, that is hit or miss. Sometimes the lates remain, sometimes the TLs are removed, and there really is no certain answer on that. It is a wait and see situation. The good thing is, though, that they will place "new" TLs for those rehabbed SLs that are backdated to their original loan date(s) with positive payment history backdated, but still no guaruntee the old TLs or the lates will be removed.

Good luck and fingers crossed they get removed!

[Mjhall85]

thanks, I appreciate the info. I will hope the lates get removed. More so happy they will backdate the positive history as its over 10 years so will definitely help my new credit.

[RobertEG]

The Higher Eduation Act includes provisions that require a lendor to report delinquencies on certain types of federal student loans, but reporting remains discretionary on other types.

What the details (i.e., type) of your federal student loan?

[Mjhall85]

They are direct loans subsidized and unsub,The lates very well may stay but at least they will drop off here in about 2 years worse case scenario.I care more about them being out of default and reporting positive and giving me more credit history as the lates are from 2015 so I am sure the effect on my rebuild will be minimal.