Student Loan Rehabilitation And The Effect On Tradelines

[FicoTron]

Just got my results via TU, same outcome, all six DELETED!  I am very excited to say the least.  Still waiting for Scorewatch to update...and for those of us who have it, lately you know that it is leaving a lot to be desired. 

As far as Sally Mae, it doesn't look good bro, it seems like Direct Loans is the only solid chance to have a clean slate.  My tradelines for the new account show 2 years of on time payments with the age of the account dating back nearly 15 years...

[gijoe4500]

I called the debt collection agency handling my student loan rehab yesterday.  They told me that Direct Loans still hasn't picked my loan back up.  I'm suppose to call again on Dec 15 (when my next payment would be due) to see the status.

[humble1911]

FicoTron, 

I am soo happy for you.  It gives us all hope.  I have been quietly following your journey for the last 4 months.  

I just finished paying off my 9th payment of the Dept of Ed rehab program with the CA (Premiere Credit).  This occurred on November 12, 2011.  I spoke with them on November 15, 2011 just to see what the next step should be and they mentioned the following:

1.  They mentioned that the US Dept of Ed (Direct Loans, which I verified with them) should be notified by November 22, 2011.  Next, since I was with direct loans, the US Dept of Ed will pick the loan back up and contact me to setup a payment schedule.

I then asked how long will it take to be removed from my credit report, and they mentioned that it usually takes 30 - 45 days, but they did verify that it will be completely removed.  However, they mentioned that have seen some people whose credit reports are updated within 2 weeks by just disputing the record after the first 10 days or after November 22, 2011. 

I want to try this, but I don't know if there is any downside to this.  Does anyone know?

Lastly, the reason I'm actually writing is because I have 3 trade lines for my SL on my credit report.  One for when the original collection was reported, which has no payment history, it just states the balance and that the status is collection/chargeoff (according to TU).  Then I have 2 from Chase that I have a couple of late payments with 30,60,120 notices.  However, they both show as closed, payed as agreed, with $0 balances because I consolidated them once in 2008.

My question is, from your experience, will the US Dept of ED just remove the 1 tradeline with the US Dept of ED and add one with good standing and payment history or will they remove the tradelines from Chase as well.

I have read lots of comments about seemingly similar situations, but I just felt that I didn't understand everyone's situation enough to discern whether or not it was similar to mine.  As a result, I'm hoping you have some insight.

Once again, thanks in advance for any insight you can provide and congrats again! 

[Trondul]

WOOOOOT! I just pulled my report from Credit Secure and all three reports are clean!  Disputing is definitely the way to go. It looks like they simply contacted DoE and they confirmed that it should be removed.  I'm anxious to see what my scores are now!

[humble1911]

Trondul,

How long after you completed the rehab's last payment did you dispute?

[Trondul]

My last payment was July 15th, 2011. So it has been a while. 

[Anonymous]

Congrats! What did you two dispute them as? Innacurate information? Or did you just tell them they are rehabilitated and should be deleted?

[Trondul]

I think on Equifax there were check boxes for innacurate information and "creditor agreed to remove" or something to that effect and I wrote in the comment that they were rehabbed loans.  On TU I think it was something like "confirm all information."  What's odd is that I haven't received any notice from either EQ or TU that my dispute was successful, but the tradelines are gone from my reports as pulled through AMEX's credit secure site.

[FicoTron]

Ok, i just got my scorewatch alert via myFico EQ and I am taking this with a grain of salt the size of a meteor large enough to destroy earth...and I know this is what the people following this thread have been waiting for, so here it is...my score before I disputed was a legit fico EQ 660, then I disputed and it went down to 618 because the accounts were not reporting...I just now got a Scorewatch alert and I absolutely DO NOT BELEIVE the score I am seeing...786!  Like I said, I don't believe it, so stay tuned for the dropoff, it seems way too good to be true.  I was hoping for something around 690 and am just in absolute shock.

[FicoTron]

So after you do the math, my score jumped from 618 to 786...a 168 point jump...but for real, it went from its highest at 660 to 786, which is a 126 point jump...not too shabby either way you look at it.  It seems a lot higher than any other I've seen though, and I haven't had any other things drop off or anything so, hopefully this is good news to others who have been in the process of rehab...PLEASE KEEP THIS THREAD ALIVE!!!  I know that when I started rehab, I would have killed to hear news like this....good luck all...