Student Loan Rehabilitation And The Effect On Tradelines

[Waytogo]

Correction: I didn't see "closed". Yeah Sock is right they will fall off. I'm not sure on the time frame I think if it was a positive account it may stay on longer. Here is some info I found on experian http://blog.equifax.com/credit/how-long-do-closed-accounts-stay-on-my-credit-report/ looks like it can be up to 10 years.

[scvbd99]

If a student loan is closed before it's repaid, that means it has either been tranferred to a new servicer for regular repayment, or it has defaulted and been transferred to a collection agency of some sort.  

Once it's closed/transferred by any servicer, if it's a positive account, the positive credit reporting information stays for 10 years.  If it's closed/transferred with any negative reporting on it, then the negative status stays until 7 years after the date of first delinquency, and the positive information will report for another 3 years after that (making 10 total).

[klondike]

So I made my final rehab payment on Friday the 14th and contacted ASA to make sure it posted. I then disputed all three credit bureaus. ASA said my loans will be resold and the bureaus updated in the 1st week of March. I will keep everyone posted.

[scvbd99]

Getting them new funding by the first week of March would be record speed.  

Mine took longer to get new funding, and it wasn't until they did that the collection agency/default tradelines were deleted.  

Best of luck, and congrats.  

[Waytogo]

Good job! I made my final payment on the 17th of Feb. I called the next day to make sure it posted. I was told to check back the first or second week of March to see if a new bank picked it up. I didn't dispute though. I assume the outcome will be the same hoepfully? I'll update as well!

[klondike]

So I made my final payment on February 14th and called ASA to make sure it went through. I received a letter on March 9th saying my loans have been picked up by ACS as of February 25th. They were the company who had them when I defaulted, so easy to setup payments etc. I setup ACH auto pay begining on March 14th.

I'm not sure what day in March they report, but I disputed on Equifax and the entry was deleted at the end of the dispute period, but my scores have not updated yet. I will let everyone know when the scores are updated.

[Involver]

As a data point regarding scoring:

My loans are currently being rehabbed.  I make my 9th payment next month.  My original T/Ls all came off this month due to age, so right now it is if the default never happened.  My TU 08 went up 106 points from 656-762.  EX 650-737.  EQ 644-733.

This includes a big deduction in AAoA (my loans were nearly 9 years including positive payment history early on).  I'm curious to see how the score will be affected by higher AAoA when they re-report but also the high ratio owed on the installment loan.

[klondike]

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@scvbd99 wrote:

Getting them new funding by the first week of March would be record speed.  

Mine took longer to get new funding, and it wasn't until they did that the collection agency/default tradelines were deleted.  

Best of luck, and congrats.  

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It only took 11 days for my loans to be resold! Now I am just waiting to the bureaus to update, which should be soon.

[Waytogo]

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@klondike wrote:

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@scvbd99 wrote:

Getting them new funding by the first week of March would be record speed.  

Mine took longer to get new funding, and it wasn't until they did that the collection agency/default tradelines were deleted.  

Best of luck, and congrats.  

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It only took 11 days for my loans to be resold! Now I am just waiting to the bureaus to update, which should be soon.

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That's great. I made my last payment but there was some issue where they did not send it to the department that handled the "pick up". So it was just signed off last week and hopefully my loans get picked up. Anyway, please keep us posted on how it worked out and your credit bumps!

[Waytogo]

Update: I just called and my loans were picked up! I was told that it could be up to 90 days for my credit file to update. But she said more than likely up to 30 days. So for me it did take about a week to get picked up after all my paper work was completed.However, I made my final payment on Feb 17th and on the 14th of March I was picked up - part of the delay was an error in processing. I would suggest to anyone to call a week after your last payment to ensure all the paperwork is complete and accounting for.