I won my appeal and was approved for a refund which should make me eligible for Fresh Start. I know this section isn't too busy, but I'dlike to hear success stories, if any. I'm impatiently waiting for my check to arrive to kick start bringing it out of default
@donkort wrote:I wasn't eligible.
But it's certainly "worth it," since it brings you out of default, point blank. Being in default on student loans is worse than being in default on most anything---except maybe child support.
My scores have been stagnant for the years I've taken interest in credit. So I'm really hoping for a bump here bc I truly believe what you said. I don't think 'they matter less as they age' applies to them.
@kcos194 wrote:I rehabbed via fresh start back in September, the whole process was pretty easy and took about 20 days or so from when I got the paperwork in the mail. I wrote about it on another site, but here's the gist of how it went down:
- I called the default resolution group (DRG) at the Department of Ed and said I wanted to rehab my 2 loans out of default using the fresh start program. You probably know this, but outside of fresh start it would take 9 on time payments to remove the default status, and these weren't low dollar amount payments.
- EdDept sent me paperwork to fill out listing my monthly expenses and I "agreed" to rehab with the larger payment. I use agreed in quotes because that is the official process, but once you send it back, that payment agreement is no longer adhered to.
- My loans were then sent to a non-default servicer, Nelnet in my case, and were added to my other 6 loans currently under the pandemic pause with them. The interest rates and balances were all the same.
If forgiveness goes through, these 2 that were in default will be paid off immediately as they're my highest rates, but if not they're just rolled into my new payment with Nelnet once the pause ends. The defaults were removed from my reports and the loans were added to my currently open acccounts within a month from them being added at Nelnet. Late payments were wiped out, just the on time payments from October to now are on them, but the dates they were opened are the same, which keeps my age of oldest account info. It resulted in about a 20-30 point bump for me at that time.
Hope this helps, happy to answer any other questions you might have, and good luck!
This works! I appreciate the response, it'll help as a template for when I make the call. Guess the whole process up until the credit adjustment/ jump is a bit longer than I anticipated.
@kcos194 wrote:I rehabbed via fresh start back in September, the whole process was pretty easy and took about 20 days or so from when I got the paperwork in the mail. I wrote about it on another site, but here's the gist of how it went down:
- I called the default resolution group (DRG) at the Department of Ed and said I wanted to rehab my 2 loans out of default using the fresh start program. You probably know this, but outside of fresh start it would take 9 on time payments to remove the default status, and these weren't low dollar amount payments.
- EdDept sent me paperwork to fill out listing my monthly expenses and I "agreed" to rehab with the larger payment. I use agreed in quotes because that is the official process, but once you send it back, that payment agreement is no longer adhered to.
- My loans were then sent to a non-default servicer, Nelnet in my case, and were added to my other 6 loans currently under the pandemic pause with them. The interest rates and balances were all the same.
If forgiveness goes through, these 2 that were in default will be paid off immediately as they're my highest rates, but if not they're just rolled into my new payment with Nelnet once the pause ends. The defaults were removed from my reports and the loans were added to my currently open acccounts within a month from them being added at Nelnet. Late payments were wiped out, just the on time payments from October to now are on them, but the dates they were opened are the same, which keeps my age of oldest account info. It resulted in about a 20-30 point bump for me at that time.
Hope this helps, happy to answer any other questions you might have, and good luck!
Hey how long did it take for your check to come in? They said allow up to 14 days. I'm business day 9, calendar day 12.
so do you think the collections from 2020 to 2022 will be deleted after my loan moved to a new servicer from "fresh start" program? thanks
@hoang817 wrote:
so do you think the collections from 2020 to 2022 will be deleted after my loan moved to a new servicer from "fresh start" program? thanks
Yea, they should. Mine looked like that too, and basically what happens is the default ones disappear from your credit reports and they then report as in good standing. They have the same balance, and origination dates, so no change to your AAoA and total debt amount, but the payment history will start anew from there. So for mine, the defaulted loans are gone like they never existed, but I have on time payments on the same exact loans from October to now.