120 days lates while working abroad

[txbubba]

My story:

After graduating from Texas A&M University I was offered a job teaching English at a Chinese junior college that had its accreditation from Hong Kong University. I thought that this would be a great opportunity to work and live in the Far East.

I have student loans. I knew about deferment and forbearance. I applied for 1 year economic deferment due to the fact that I wouldn't be earning enough American money to my student loan. My student loan did go "on hold."

 

I left in August 2005.

Let me state that my student loan is with AES aka American Education Services.

 

Everything was great till January 2006 when AES sent a letter saying that the 6 month deferment was over.

Numerous attempts to contact them by phone, email and letter failed.

 

Here's the problem: You can't call their freakin (and several other curse words) 800/toll free numbers from China. So I call their non-800 # but I always have trouble because the phone lines suck. Besides the obvious fact that its the middle of the night when its US standard business hours. Okay enough venting.

 

Here is my student loan info

 

I arrived back in America September 2006. Since my arrival I have paid it on time every month.

While my loan was never defaulted, can I use Default Rehabilitation?

What can I do to rid of myself of this big red stain?

 

AES website has a says

You must make at least 9 payments within 20 days of your assigned due date during a period of 10 consecutive months

and

 

Your loan(s) will be repurchased and the defaulted account status reported by AES will be deleted from your credit report. Once rehabilitated, you may actually improve your credit by continuing to maintain your scheduled monthly payments.

 

What does the above quote mean in plain English? It says the defaulted account status would be deleted.

My loan isn't in default.

Will they close out the previous credit loan entry without deleting the late payments?

 

Since it will be two years on August/Sept 08 should I just continue to pay ontime and wait?

Edited December 10, 2007 by txbubba

[LynnInMN]

Since you did not default, you cannot rehab.

 

Even if you had defaulted, Suntrust/AES is your lender/servicer. Nothing would have changed on this tradeline even with rehab as it is only the guarantors tradeline that the negatives info is removed.

 

The late pays remain until they age off.