No experience here, but a Google search provided this page: https://studentaid.ed.gov/sa/repay-loans/default/get-out.
Midway down the page, it states "Once you have made the required nine payments, your loans will no longer be in default."
Here's another page with similar information: http://www.studentloanborrowerassistance.org/collections/federal-loans/getting-out-of-default-federa....
Hi Sasha! My experience was that after the 9th month they moved my two student loans in default to a new lender so from ECMC to Navient. They lowered the APR and monthly payment but I didn’t owe much at that time and just paid in full once they were moved. They reported as current and when paid closed but marked as paid. They removed the derogatory information too. It was like getting a clean slate going through the loan rehabilitation.
Your lender will will send you a letter with all of this information and where they’ll moved the loan if they do moved them. There might be a month or so where you don’t have to pay while the loans get moved and the new lender will send you a new due date too.
@Anonymous wrote:
@shoegal wrote:Hi Sasha! My experience was that after the 9th month they moved my two student loans in default to a new lender so from ECMC to Navient. They lowered the APR and monthly payment but I didn’t owe much at that time and just paid in full once they were moved. They reported as current and when paid closed but marked as paid. They removed the derogatory information too. It was like getting a clean slate going through the loan rehabilitation.
Your lender will will send you a letter with all of this information and where they’ll moved the loan if they do moved them. There might be a month or so where you don’t have to pay while the loans get moved and the new lender will send you a new due date too.
awesome thank you!
im trying to get all my info and ducks in a row while we're in this "quiet waiting period" with the house haha..
Because you're applying for a mortgage I want to clarify so that it doesn't freak you out -
When the loans move to a new servicer it will create new accounts on your CR. The old student loan accounts will be closed and derogatory payment status removed; the lates however, will remain. When the loan accounts show up on CR the opening date should be backdated to the date the prior loans were opened.
Hopefully, your mortgage lender knows that your loans are in rehab (and what the process entails) so they don't get concerned when the new accounts pop up on your report if you're still going through the approval process when that happens.
