cancel
Showing results for 
Search instead for 
Did you mean: 

What happens after 9th rehab payment?

Senior Contributor

What happens after 9th rehab payment?

so 20 years after i was in school i decided to rehab my federal loans.. today my 7th payment came out.

so what happens after the 9th one? i see some posts about disputes etc but do i need to do this? can i just keep paying? once its rehabbed will it affect my credit and if it does hopefully in a good way!

im asking these questions because really i can only deal with one rediculousness at once(see my post in mortgage loans - short story my landlord is being foreclosed on and bf decided he didnt want to rent anymore so we got a preapproval and decided to buy a house!)

thank you for any info you can provide!
| Discover $11,500 - Capital One $4,500 - Care Credit $7,000 - Lowe's $5000 - Honda Financial Lease - Ch 7 BK 12/2013 - First Time Home Buyer!! Close 8/21/18 |
Message 1 of 15
14 REPLIES
Valued Contributor

Re: What happens after 9th rehab payment?

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....

2019 Goals: 800+ across the board (my sole 30-day late drops in Q1 2019); save 3 months' worth of income
2018 Goals: garden, 750+ across the board, garden

Experian is still the canary in my coal mine.

EQ7997 INQ (4 CC, 2 mort, phone)
EX7649 INQ (5 CC, 2 HELoan, 2 mort)
TU8027 INQ (5 CC, 2 mort)
8/24 < 4% AAoA 6.7 | AoYA 2m | AoOA 19.8y
Take the myFICO Fitness Challenge [ Last INQ 14-Oct-2018 ]
Really not much of a gardener.
Message 2 of 15
Senior Contributor

Re: What happens after 9th rehab payment?


@expatCanuck wrote:

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....


ah thank you!

| Discover $11,500 - Capital One $4,500 - Care Credit $7,000 - Lowe's $5000 - Honda Financial Lease - Ch 7 BK 12/2013 - First Time Home Buyer!! Close 8/21/18 |
Message 3 of 15
Valued Contributor

Re: What happens after 9th rehab payment?

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.


Gardening Goal: Waiting out the last derogs until April 2019
Message 4 of 15
Senior Contributor

Re: What happens after 9th rehab payment?


@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..

| Discover $11,500 - Capital One $4,500 - Care Credit $7,000 - Lowe's $5000 - Honda Financial Lease - Ch 7 BK 12/2013 - First Time Home Buyer!! Close 8/21/18 |
Message 5 of 15
Frequent Contributor

Re: What happens after 9th rehab payment?


@sasha123 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.

Current Cards:
Goal Cards:
EX 8: Jan 2018 - 546 | EQ 8: Jan 2018 - 571 | TU 8: Jan 2018 - 566
EX 8: Jul 2018 - 572 | EQ 8: Jul 2018 - 573 | TU 8: Jul 2018 - 578
TCL: $1,350 | AAoA: 8.2 yrs (I can thank my student loans for this) | Util: 65% (high due to charge-offs)
Cleaning up and rebuilding after a long hiatus from credit
Message 6 of 15
Senior Contributor

Re: What happens after 9th rehab payment?


@beutiful5678 wrote:

@sasha123 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.


actually i forgot to tell her about that but.. if any of that does happen ,of course i have all my paperwork and can just be like uh sorry totally forgot!  but also its on auto draft so its on my checking account statements 

| Discover $11,500 - Capital One $4,500 - Care Credit $7,000 - Lowe's $5000 - Honda Financial Lease - Ch 7 BK 12/2013 - First Time Home Buyer!! Close 8/21/18 |
Message 7 of 15
Established Member

Re: What happens after 9th rehab payment?


@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.



hi shoegal, just a quick question for you. Did the derogatory accounts get deleted from your reports after rehab? My rehab is set to be done this month and for some reason US Dept of Edu (or maybe the CRA?) deleted my derogatory accounts on TU & EQ already last month but they haven't been deleted on EX so I was just curious if finishing the rehab would get them to delete those accounts? Did they for you? 

Message 8 of 15
Senior Contributor

Re: What happens after 9th rehab payment?

so today 4/30 i got a notice from the dept of ed that they removed my account from the preauthorized debit program! no explanation why... it gives me their # to call however anytime i try to call it refers me to Performant? but thats not who my loan servicer is.. i go through myeddebt.ed.gov and their website has been down for like 2 weeks now so how the heck am i supposed to make the last 2 payments of my rehab arrangement!?
😢😡
| Discover $11,500 - Capital One $4,500 - Care Credit $7,000 - Lowe's $5000 - Honda Financial Lease - Ch 7 BK 12/2013 - First Time Home Buyer!! Close 8/21/18 |
Message 9 of 15
Senior Contributor

Re: What happens after 9th rehab payment?

so i found my original paperwork for my student loan rehab app and it has the national service center payment address on it so i will mail a payment today.. but i STILL want to know why they randomly cancelled my auto draft in my 8th month! i will be including my THIRD complaint letter with my payment! 😂 ... Dept of Ed has the worst customer service ive ever encountered! its like they want you to fail loan rehab!

| Discover $11,500 - Capital One $4,500 - Care Credit $7,000 - Lowe's $5000 - Honda Financial Lease - Ch 7 BK 12/2013 - First Time Home Buyer!! Close 8/21/18 |
Message 10 of 15