Paying off rehab early? Good or bad?

[qwerty-7]

Question1:

 

I am about to rehab a few student loans I didn't know about. I really could pay the off loans within the next few months. Does it do me any good or is it counterproductive?

 

Question 2:

 

I was just made aware of these defaulted loans, as I was under the impression that they were paid off. I have another loan I have been making monthly payments on for almost two years. It is in good standing and dates back to 1994. One of the few positives on my credit. Does it have to be included?

[LynnInMN]

Question1:

 

I am about to rehab a few student loans I didn't know about. I really could pay the off loans within the next few months. Does it do me any good or is it counterproductive?

 

Are you talking paying the entire loan off in full or just the payments required to rehab? If the latter, you cannot advance pay on a rehab.

Question 2:

 

I was just made aware of these defaulted loans, as I was under the impression that they were paid off. I have another loan I have been making monthly payments on for almost two years. It is in good standing and dates back to 1994. One of the few positives on my credit. Does it have to be included?

 

 

Included in what??? In the above rehab??? Is it with the same lender??

[DaddyO]

REhab removes the negatives from the credit report.

 

 

I rehabed both my federal and perkins loan....had enough to pay the Perkins off, but that would have left the negatives on the credit report.

 

 

just my .02

[qwerty-7]

I was talking about setting up the rehab arrangements and then paying it off completely in the next couple of months.

 

As for my other student loan:

It is with William D. Ford while the rehab would be with Dept. of Ed.'s collection agency. I really would not like to include it in the rehab because it is my oldest file by far and it has been paid as agreed for the last 2 years.

 

Thanks for the input LynnInMN... and your .02 DaddyO.

[ziggypop]

I was talking about setting up the rehab arrangements and then paying it off completely in the next couple of months.

 

This isn't possible, as Lynn said. Rehab requires 9 on-time consecutive voluntary payments. There must be (I believe) at least 20 days (it might be as little as 15, but I'm not sure) between each payment. So, you have to do it as monthly payments. Oftentimes, they'll "strongly urge" you to do auto-debit (as an aside, that's not an issue with SLs like it is with other auto-debits on defaults -- most of us here have done it with no problems at all). It might take a couple of extra months, though, after the 9th payment to get the loan resold and finished with the actual rehab.

 

As for my other student loan:

It is with William D. Ford while the rehab would be with Dept. of Ed.'s collection agency. I really would not like to include it in the rehab because it is my oldest file by far and it has been paid as agreed for the last 2 years.

 

If it's a separate loan and not in default, there's nothing on it to rehab, so that's not an issue at all, anyway.

 

Thanks for the input LynnInMN... and your .02 DaddyO.

 

Hope this helps!!

[qwerty-7]

Thanks, it does.