I finished rehab on 5 student loans a few months ago and I have some confusion about the results.
I rehabbed 2 loans from Sallie Mae (USA Funds was the guarantor). After rehab, USA Funds completely deleted their TLs, Sallie Mae didn't delete any lates, and opened new TLs that said the accts were opened the same date as the original loans. All of which I expected. What I'm confused about is the 2 original loans that went into default...they are closed and in the comments section they say, "Student loan permanently assigned to government." I was under the impression that it can't say anything like that (that's considered a negative comment) after rehab. Am I wrong? Also, the new and positive TLs are closed also (the loans are now with FedLoan) and while they say the opening date was 10/2004 the only payment history reported is 10/13-12/13. It was my understanding that the payment history would date back to the date the original loans were open and show all payments were made on time. I know the payment history on the original loans shouldn't get changed, but I expected the new TLs to show positive history dating back to 2004. Am I wrong on this? I don't know what to do to fix these 2 issues if they should be fixed.
I rehabbed a Perkins loan and it still reports negatively to the CRAs and shows its in default. Should I contact the school about this (the school provided the loan)? The CA I did the rehab through has since deleted their reporting with no problems.
I rehabbed 2 SLs through DOE. The original lender was Discover. The original loan just says it was closed/transferred...that's what I expected. The new loans are now with Nelnet and I'm having the same problem with those as I am with the new SM trade lines...they say the date opened was the same as the original loans, 04/2009, but only show payment history for a few months. What should I do about that? Is it right that it's reporting that way? DOE doesn't have any other positive or negative TLs on my report as the deleted the neg TL when rehab was completed.
sorry for the long post but any help would be greatly appreciated. Thanks!
The two Sallie Mae loans should not have that comment, it needs to be removed and/or updated to closed/transferred like your other loan. After rehab, the lates leading up to the default can continue to be reported, but the default notation has to be removed. Call Sallie Mae, if they won't remove it, try disputing it with the CRAs or working with the Student Loan Ombudsman.
The payment history on your post-rehab tradelines is correct as far as I know, others have reported the same thing. You're getting the positive effect of the age of the account on your score, and you'll build up some good payment history with those tradelines in short order.