Student Loans

[Charmante]

I have 5 Student Loans totaling $19,000 and each was opened in 2011. They all fully defaulted. Collections.

However I started the Federal Student Loans Rehabilitation Program.

Where you make 9 on time payments, then they are removed from default and reclassified as Never Late.

They advised me that after 9 payments ALL negativity will be COMPLETELY DELETED from my credit report...

Questions:

1) Has anyone done this? Did it work? How well?

2) Do the loans now report NEVER LATE?

3) Do they show OPENED Since the ORIGINAL Date you established them OR the date Rehabilitation happened or what...?

4) After I rehabilitate, is it possible to combine into ONE LARGE $20,000 LOAN or must they remain as 5 smaller loans...?

Thank you all.

[Anonymous]

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@Charmante wrote:

I have 5 Student Loans totaling $19,000 and each was opened in 2011. They all fully defaulted. Collections.

However I started the Federal Student Loans Rehabilitation Program.

Where you make 9 on time payments, then they are removed from default and reclassified as Never Late.

They advised me that after 9 payments ALL negativity will be COMPLETELY DELETED from my credit report...

Questions:

1) Has anyone done this? Did it work? How well?

2) Do the loans now report NEVER LATE?

3) Do they show OPENED Since the ORIGINAL Date you established them OR the date Rehabilitation happened or what...?

4) After I rehabilitate, is it possible to combine into ONE LARGE $20,000 LOAN or must they remain as 5 smaller loans...?

Thank you all.

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This should be moved to Student Loans ;-)

I just finished rehabbing my student loans which had dropped off my reports in 2012-14 sometime. There are 27 of them !

 FedLoan just picked them up and I'm waiting for them to report to the 3Bs

 the rehab process removes "default " from your loans which is a plus

 it also reports them as new trade lines and with their old dates! Yay your AAoA increases!

 However, any lates will stay on your report from DOFD : if you took out those loans in 2011, they question is when were the first lates? When did they go into default? If the answer is later than 2013, then those lates we'll still appear. 

[Charmante]

They were late in early 2012. I actually never made a single payment... I forgot they existed until they began automatically taking a portion of my income every month. Lol

I hope they appear NEVER LATE... Lol

Thank you so much for help...

[Anonymous]

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@Charmante wrote:

I have 5 Student Loans totaling $19,000 and each was opened in 2011. They all fully defaulted. Collections.

However I started the Federal Student Loans Rehabilitation Program.

Where you make 9 on time payments, then they are removed from default and reclassified as Never Late.

They advised me that after 9 payments ALL negativity will be COMPLETELY DELETED from my credit report...

Questions:

1) Has anyone done this? Did it work? How well?

2) Do the loans now report NEVER LATE?

3) Do they show OPENED Since the ORIGINAL Date you established them OR the date Rehabilitation happened or what...?

4) After I rehabilitate, is it possible to combine into ONE LARGE $20,000 LOAN or must they remain as 5 smaller loans...?

Thank you all.

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Consolidation will make a new TL entry on your CRs thus lowering your AAoA. Since your loans are old, those TLs would potentially drop off, especially since thry were defaulted. Are they still on your CRs? If they are, the DOFD may be 2013 or later. When you rehab, they will have dates from when you originally got them with positive info reporting (though, not on the old TLs until they age off, as those lates will most likely stick), thus giving you a very long and old AAoA. That seems much better for your scores than a new TL, but the choice is always yours as what is best for you, as there are always other factors. Just because there is a lot of entries does not mean you have a bad CR, it is just thicker.