Guarantor vs Original lender/servicer reporting on defaulated SLs

[cammy5]

This may be somewhat of a silly question, so please hold the rolled eyes for the time being. I have filled out the paperworkd to enter the rehab program for my defauled federal student loans. In reading that programs guidlines, as well as numerous posts here, it is my understanding that after completing the rehab program for 9+ months the, the guarantor updates your account info to 'paid/ pays as agreed' or something similar. This is currently (as of December 2007) how it is reporting on my TransUnion credit report.....

 

 

KY Higher Edu Asst Auth #XXXXXXXXXXXXXXXXXXXXXXX

 

Balance: $2,283..........................Pay Status: >Collection Account<

Date Updated: 10/2007.......................Acct Type: OPEN ACCOUNT

High Balance: $1,536..........................Responsibility: Individual Account

Collateral: 07 Regions Bank..........Date Open: 12/2003

Loan Type: Stu Loan............................Date Closed: 02/2004

Past Due: >$2,283<

Remarks: >Placed for Collection<

Estimated date that this item will be removed: 11/2010

 

 

I have the following questions:

 

1) Is the 'guarantor' the Dept of Education (apparently also noted at Kentucky Higher Education Authority in my area) and the 'original lender/servicer' in my case Regions Bank?

 

2) Once rehabbed, how exactly does the Dept of Edu list your loans? Does it list them as 'current/pays as agreed' AND never late, or do the late payment history remain?

 

3) I suppose I did have some bit of 'beginners luck' when I first disupted some info on my credit reports since some of the first items to be deleted were the Regions Bank TLs. At the time, they were listed as 'claim filed with govt/120+ days late'. There are all now deleted and in the past year have not reappeared. Is this (Regions Bank) the original lender/servicer that everyone seems to say will not delete/change their reporting of your TL?

 

As with many here I assume, I look back at my younger days and shake my head at how I was irresponsible and let this get way out of hand, but I suppose the only thing to do now is look forward to the future and try to rectify this situation as best I can (with your help ofcourse!).

Edited January 23, 2008 by cammy5

[LynnInMN]

This may be somewhat of a silly question, so please hold the rolled eyes for the time being. I have filled out the paperworkd to enter the rehab program for my defauled federal student loans. In reading that programs guidlines, as well as numerous posts here, it is my understanding that after completing the rehab program for 9+ months the, the guarantor updates your account info to 'paid/ pays as agreed' or something similar. This is currently (as of December 2007) how it is reporting on my TransUnion credit report.....

 

 

KY Higher Edu Asst Auth #XXXXXXXXXXXXXXXXXXXXXXX

 

Balance: $2,283..........................Pay Status: >Collection Account<

Date Updated: 10/2007.......................Acct Type: OPEN ACCOUNT

High Balance: $1,536..........................Responsibility: Individual Account

Collateral: 07 Regions Bank..........Date Open: 12/2003

Loan Type: Stu Loan............................Date Closed: 02/2004

Past Due: >$2,283<

Remarks: >Placed for Collection<

Estimated date that this item will be removed: 11/2010

 

 

I have the following questions:

 

1) Is the 'guarantor' the Dept of Education (apparently also noted at Kentucky Higher Education Authority in my area) and the 'original lender/servicer' in my case Regions Bank?

 

No. Your guarantor is Kentucky if they are still holding the loan. ED is more like the grandfather.

 

2) Once rehabbed, how exactly does the Dept of Edu list your loans? Does it list them as 'current/pays as agreed' AND never late, or do the late payment history remain?

 

Ed doesnt. Kentucky will list your loans as paid as agreed.

 

3) I suppose I did have some bit of 'beginners luck' when I first disupted some info on my credit reports since some of the first items to be deleted were the Regions Bank TLs. At the time, they were listed as 'claim filed with govt/120+ days late'. There are all now deleted and in the past year have not reappeared. Is this (Regions Bank) the original lender/servicer that everyone seems to say will not delete/change their reporting of your TL?

 

Correct. It is possible that the tradeline may pop up again.

 

As with many here I assume, I look back at my younger days and shake my head at how I was irresponsible and let this get way out of hand, but I suppose the only thing to do now is look forward to the future and try to rectify this situation as best I can (with your help ofcourse!).

[cammy5]

Thanks for the quick reply! That seems to be a bit of good news. I'm going to hurry up and mail out my rehab info so I can (hopefully) prevent Dept of Ed of making any notations on my CRs, since (once again, hopefully), Kentucky Higher Ed Asst Auth will delete their notation entirely upon completion of rehab.