Student Loan catastophy!

sonogirl · ‎12-21-2007

Please help... First post please be kind

So back in 6/2005 I defaulted on my student loans (partly their fault partly mine they were sending statements to old address and I thought I had atleast a year to repay or when I found a job in my field

As soon as I checked my CR's in 1/2006 I noticed the default. I immediatly started the default rehabilitation program $340 a month for 12 months on time every time. As of today I have 2 new TL's with all positives since 2/07 and 7 negs from original servicer listed as CHARGE OFF/ CLAIM FILED WITH GOVERNMENT does that sound right every time I call them they say these negs must remain. The kicker is that my servicer and guarantor were both AES who is listed all 7negs and the 2 new pos. Anybody have any experience with this any advice would be great at this point. Thanks in advance.

Scores 12/12/07

EX:519

EQ:544

TU:517

All Fico

09/11 TU 599 EQ 601

Anonymous · ‎12-21-2007

I would contact the DOE.
The status should be updatedto paid/pays as agreed the lates will remain,

Anonymous · ‎12-22-2007

I may have misunderstood your post, but are you saying that even after you rehabed your student loan that the neg stayed on your reports. I am in the process of rehabing my loan and my paper work states that once rehabed all neg entries will be deleted from my credit report and the loan will be sold to another bank. my loan is with HESSA and i have talked to several csr who ahve all told me the same thing, rehabing the loan is designed to get your loan out of default, and clearing up your credit is the incentive that the government finally got smart enough to offer so that more people would start paying back their loans. the program now only requires 9 on time monthly payments out of a 10 month period, so you could even miss a month without blowing your chance at rehabing the loan. i would contact your loan company again and ask for a supervisor, the lates are not supposed to remain and infact when sold / or rehabed the old trade line disappears completely. it may hurt your score at first because it may reage your credit file but its worth it because your score will increase with the new trade line provided you keep it in good standing. however you never get another chance to rehab a loan again if it goes into default once rehabed.

hope this helps, keep me posted. good luck

sonogirl · ‎12-22-2007

Thanks for responding regarding all the old neg TL they remain but with a $0 balance and are all listed as Charge off I got the same letter when I rehabbed saying that the default status should be removed but when I speak to a supervisor at AES they are saying that when you default on your loan the government reports additional TL's kind of like how collection agencys sell accounts to one another adding new TL's and when your are out of default the government deletes their TL's but the original servicer's TL still remains as charged off. They will not budge on this even though I explain to them it is ruining my chances at getting new credit seeing as though no one will give you credit when it looks like you have not satisfied a student loan default. Maybe I will try to contact the DOE maybe they can help because AES is not helpfull at all even though I've gone two years without missing a payment with them.

09/11 TU 599 EQ 601

Anonymous · ‎12-22-2007

Just to be clear

The SL Rehab program
9 months of on time payments = they report those on time payments and change the STATUS of the account to CURRENT.

If the TL sould now say OK/Current or when paid it will say OK/current was XX days past due.

The previous late payments will remain for 7 years.
If someone tells you different get it in writing-

sonogirl · ‎12-29-2007

Update: I got a letter from AES stating that they will only change my defaulted student loans to charge off with $0 balance. I called them and they stated that they are a part of the DOE and that they follow the DOE'S guidelines then I call the DOE default line and they say AES is a seperate entity. Why is everyone giving me the run around lately I rehabbed almost 2yrs ago and have been on time ever since please someone help I am so exhausted with this!

09/11 TU 599 EQ 601

Anonymous · ‎12-29-2007

I would submit a formal complaint-

https://wdcrobcolp01.ed.gov/CFAPPS/OIG/englishhotlineform.cfm

sonogirl · ‎12-31-2007

Hi Timothy this question is for you. I called and spoke with AES today for the 26th time since september and I finally got someone who actually cares kindof she says it doesn't sem fair that the old loans should be listed as chargeoff/collection when they were rehabbed I almost jumped through the phone because that's what I 've been saying all along! My question is I read on one of your posts that you should not consolidate student loans until they are out of default well I consolidated my loans as soon as they were out of default is that what the problem is?? If so that is such BS because AES offered me the consolidation option after rehabbing they said it was they only way to lower my payment. The manager at AES I spoke to today said she would speak to someone in the credit dept. to see if she could correct this. Have you ever heard of this happening? I feel like they tricked me by offering lower payments but failing to say at what cost bad credit for 7 years!? Please help I think this is what's tanking my scores there is 7 charge off/collections listed from this

09/11 TU 599 EQ 601

Anonymous · ‎12-31-2007

sonogirl wrote:
Hi Timothy this question is for you. I called and spoke with AES today for the 26th time since september and I finally got someone who actually cares kindof she says it doesn't sem fair that the old loans should be listed as chargeoff/collection when they were rehabbed I almost jumped through the phone because that's what I 've been saying all along! My question is I read on one of your posts that you should not consolidate student loans until they are out of default well I consolidated my loans as soon as they were out of default is that what the problem is?? If so that is such BS because AES offered me the consolidation option after rehabbing they said it was they only way to lower my payment. The manager at AES I spoke to today said she would speak to someone in the credit dept. to see if she could correct this. Have you ever heard of this happening? I feel like they tricked me by offering lower payments but failing to say at what cost bad credit for 7 years!? Please help I think this is what's tanking my scores there is 7 charge off/collections listed from this

I'm anxious to see what kind of results you get. I have my pre-consolidated Sallie Mae loans showing 13 baddies, each with 4 x 120 days late. However, they all show up as "closed/transferred" with TU as pay status blank, EX as "current", and EQ as "too new to rate". The dings are from late 2001. I don't think anything can be done, maybe a GW, but who knows. In Dec 01 I paid a bunch of $$ to quickly get them out of default so I could get a mortgage in April 02. So, Sallie Mae got them from USA Group, and serviced from March 01-April 02 before the consolidation. Any ideas?

Anonymous · ‎12-31-2007

Well it sounds like EX is correct-

You can try a GW-

Unless these are your only baddies- they aren't hurting too much anymore.

WhirledPeasPlease wrote:

sonogirl wrote:

Hi Timothy this question is for you. I called and spoke with AES today for the 26th time since september and I finally got someone who actually cares kindof she says it doesn't sem fair that the old loans should be listed as chargeoff/collection when they were rehabbed I almost jumped through the phone because that's what I 've been saying all along! My question is I read on one of your posts that you should not consolidate student loans until they are out of default well I consolidated my loans as soon as they were out of default is that what the problem is?? If so that is such BS because AES offered me the consolidation option after rehabbing they said it was they only way to lower my payment. The manager at AES I spoke to today said she would speak to someone in the credit dept. to see if she could correct this. Have you ever heard of this happening? I feel like they tricked me by offering lower payments but failing to say at what cost bad credit for 7 years!? Please help I think this is what's tanking my scores there is 7 charge off/collections listed from this

I'm anxious to see what kind of results you get. I have my pre-consolidated Sallie Mae loans showing 13 baddies, each with 4 x 120 days late. However, they all show up as "closed/transferred" with TU as pay status blank, EX as "current", and EQ as "too new to rate". The dings are from late 2001. I don't think anything can be done, maybe a GW, but who knows. In Dec 01 I paid a bunch of $$ to quickly get them out of default so I could get a mortgage in April 02. So, Sallie Mae got them from USA Group, and serviced from March 01-April 02 before the consolidation. Any ideas?