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Student Loans Rehabbed

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Valued Member

Student Loans Rehabbed

After what seems like an eternity I am finally at a huge milestone in rebuilding my credit!

Just reached out to Navient today to confirm that my loans were rehabbed and sent to them! 
it feels like a weight has been lifted off my shoulders!! 
This is the last major thing I needed to clear up on my credit report(besides waiting for a few inquiries to fall off, current at 4 for ex and tu 5 for eq). 


I do have a few questions.


Does anyone know of my loans will now show closed instead of in default for the department of education ?

will Navient open up "new" loans for me in good standing?  If so will they be back dated to when I originally opened my student loans? 
Will my payment history be cleared up?
thanks ! 

Message 1 of 6
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Valued Contributor

Re: Student Loans Rehabbed


@Wls170 wrote:

After what seems like an eternity I am finally at a huge milestone in rebuilding my credit!

Just reached out to Navient today to confirm that my loans were rehabbed and sent to them! 
it feels like a weight has been lifted off my shoulders!! 
This is the last major thing I needed to clear up on my credit report(besides waiting for a few inquiries to fall off, current at 4 for ex and tu 5 for eq). 


I do have a few questions.


Does anyone know of my loans will now show closed instead of in default for the department of education ?

will Navient open up "new" loans for me in good standing?  If so will they be back dated to when I originally opened my student loans? 
Will my payment history be cleared up?
thanks ! 


The default remark on the NSLD may take time to be uodated, but what is important is what is reported on your CRs.

 

The answers should be yes to everything you asked except for cleaning up your payment history. There is no guarantee of that. Some servicers do remove the old lates and others do not and there is no way to force the issue. Either way, you should hopefully see improvement when the defaulted SLs (CAs) come off your CRs and possibly again when the "new" old TLs are placed on with the backdated open date (if this increases your AAoA and possibly give you a new AoOA), but that will depend on your credit profile.

 

If they remove the lates or old OC TLs, then you should possibly see a bump there too, but again there is no guarantee they will remove the lates or the OC TLs. If they don't remove them, the lates will fall off as they hit 7 years old.

 

Good luck!




Starting Score: 2•20 | EQ 550 | TU 498 | EX 505
Current Score: 10•20 | EQ [F8 615] [F9 653] [EQ5 645] [VS3 656] | TU [F8 567] [F9 552] [TU4 563] [VS3 639] | EX [F8 587] [F9 573] [EX2 614] [VS3 631]
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SO Starting Score: 2•20 | EQ 502 | TU 484 | EX 521
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Message 2 of 6
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Valued Member

Re: Student Loans Rehabbed

Just a quick update: 

it appears that some of my old tradelines are disappearing from my credit reports and being replaced with Navient.   This happened on my Experian report so I'm hoping when my credit reports update next all 3 will show this trend.  If not I may dispute the closed accounts with the negative marks.. 

Message 3 of 6
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Senior Contributor

Re: Student Loans Rehabbed


@Wls170 wrote:

Just a quick update: 

it appears that some of my old tradelines are disappearing from my credit reports and being replaced with Navient.   This happened on my Experian report so I'm hoping when my credit reports update next all 3 will show this trend.  If not I may dispute the closed accounts with the negative marks.. 


Just FYI:  if the lates are <7y old and aren't deleted, don't dispute.  If it's a negative account, then definitely as the rehab should bring them all current.

@Wls170 ,


Huge favor for the info:  Do your rehabbed lines report as 100% utilization (as if it were a new loan, not interested in the date, just the utilization)?     I'm curious if somone with rehabbed lines will report >100% due to fees/interest, etc, or if you get a new start at 100% like you do with consolidated lines.




F8 EQ: 804 | EX: 794 | TU: 801 | Accounts: 2/6 4/12 9/24
Happy practitioner of AZE9or10or11 | Team Finances > FICO
Message 4 of 6
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Valued Member

Re: Student Loans Rehabbed


@calyx wrote:

@Wls170 wrote:

Just a quick update: 

it appears that some of my old tradelines are disappearing from my credit reports and being replaced with Navient.   This happened on my Experian report so I'm hoping when my credit reports update next all 3 will show this trend.  If not I may dispute the closed accounts with the negative marks.. 


Just FYI:  if the lates are <7y old and aren't deleted, don't dispute.  If it's a negative account, then definitely as the rehab should bring them all current.

@Wls170 ,


Huge favor for the info:  Do your rehabbed lines report as 100% utilization (as if it were a new loan, not interested in the date, just the utilization)?     I'm curious if somone with rehabbed lines will report >100% due to fees/interest, etc, or if you get a new start at 100% like you do with consolidated lines

 

 

Yes some of the loans are showing the balance is higher than the loan amount.  

Experian doesn't show me utilization so I can't  say for sure if it reports as >100%.  Their site will show my credit card utilization but for student loans it just shows the amount paid. 

 

 

 


Not sure how or if that hurts my score though 

Message 5 of 6
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Senior Contributor

Re: Student Loans Rehabbed


@Wls170 wrote:

@calyx wrote:

@Wls170 wrote:

Just a quick update: 

it appears that some of my old tradelines are disappearing from my credit reports and being replaced with Navient.   This happened on my Experian report so I'm hoping when my credit reports update next all 3 will show this trend.  If not I may dispute the closed accounts with the negative marks.. 


Just FYI:  if the lates are <7y old and aren't deleted, don't dispute.  If it's a negative account, then definitely as the rehab should bring them all current.

@Wls170 ,


Huge favor for the info:  Do your rehabbed lines report as 100% utilization (as if it were a new loan, not interested in the date, just the utilization)?     I'm curious if somone with rehabbed lines will report >100% due to fees/interest, etc, or if you get a new start at 100% like you do with consolidated lines

 

 

Yes some of the loans are showing the balance is higher than the loan amount.  

Experian doesn't show me utilization so I can't  say for sure if it reports as >100%.  Their site will show my credit card utilization but for student loans it just shows the amount paid. 


Not sure how or if that hurts my score though 


If it does hurt it, it would probably be negligible (past data). 

@LaHossBoss had a question regarding utilization of rehabbed loans in their thread, and I thought that the utilization would be based on the original loan amount, but wasn't 100% sure, so your answer is super helpful - Thank you!




F8 EQ: 804 | EX: 794 | TU: 801 | Accounts: 2/6 4/12 9/24
Happy practitioner of AZE9or10or11 | Team Finances > FICO
Message 6 of 6
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