Hi everyone. I just wanted to post a new thread about SL rehabilitation. So I just completed my rehab by making my 10th consecutive payment on 2/15. My rep told me within a week or two a new loan servicer will pick up my loans and to wait for a packet in the mail. I’ve been rebuilding my credit and this is the only thing that’s keeping me out of the 700 club. I’m excited to see when the negatives are removed from my report what my score will jump to. I’m anticipating to be in the 700s. Today (2/17) I am going to dispute on all bureaus the inaccuracies to help move along the process. I will continue to update.
While this is a strategy that others have tried, some with success, it is important to note that your lates were likely not inaccuracies. As part of the rehab your default is guaranteed to be removed. However, people have the mistake belief the lates will be wiped too. This means disputing them as inaccurate when you know that they indeed accurate is a slippery slope anyone should approach with caution.
@sabii Perhaps I was given incorrect info but I am under the impression that all the lates and default status will be changed to reflect on time payment. Is this not true? This is what I have been told by coast Professional who I just completed my rehab with. That’s why I did the dispute bc I read on here people had success and it sped up the process instead of just waiting.
Ar100: Unfortunately what they told you is incorrect. They are a collection agency but the actual process is from the Department of Education. "When your loan is rehabilitated, the default status will be removed from your loan, ....Also, the record of default on the rehabilitated loan will be removed from your credit history. However, your credit history will still show late payments that were reported by your loan holder before the loan went into default." https://studentaid.ed.gov/sa/repay-loans/default/get-out#loan-rehab
If someone wanted to get the default removed I would just wait. It gets removed as a part of the process. As far as the lates, I would just wait to see if they get removed by themselves before I started a dispute. That's just what I would do. If there's anything getting a second chance at my credit health has taught me, it's patience.