Weird Rehab situation - Questions about reporting, etc.

[Jbean]

Hi all!

 

Haven't found a similar situation on here, so maybe once I ask, i can compile an accurate picture of what will happen...

 

I had student loans with Nelnet, to the tune of about $7.5k. I defaulted on them ages ago (long story), and they fell off my report ages ago. Nelnet has no record of me.

 

Fast forward to now. I'm done with that hideous long story and in the repair process. I'm headed back to school. One of the things I need to do is rehab my loans so that I am in active repayment. When I'm rehabbed, I should be able to apply for financial aid again in 2009. Yay!!! (note for those who don't know: You can't file a FAFSA if you're in default. This especially sux for those in states that have additional programs you can qualify for, but only if you file a FAFSA.... )

 

So, things stand thus:

-No SL on my CR

-$7.5k worth of default, about to go into rehab.

-Nelnet, the OC, does not have me in their current files.

 

The question is, what will happen to my report on beginning rehab? I *assume* the DOE puts it on all 3 CRA's, and it tanks my scores for the 9-month duration. Then, DOE removes all negative notations. When Nelnet gets it back, what will happen then? ALL previous activity with Nelnet is way past reporting SOL, so do they show only the current info, which is on-time payments? Or are they going to show 7 years of 120-day lates, and NOW positives?

 

Any ideas??

 

Thanks all!

Edited March 18, 2008 by Jbean

[sjg07]

I was in a similar situation.

 

Rehab did not show up on my credit reports.

 

I asked here and was told that, after rehab, the new consolidated loan would show up, but not the old defaulted loans. My new consolidated loan is still being processed, so I can't verify the previous sentence (my fingers are crossed that it's true, though!).

 

Good luck!

[Saria]

Hi all!

 

Haven't found a similar situation on here, so maybe once I ask, i can compile an accurate picture of what will happen...

 

I had student loans with Nelnet, to the tune of about $7.5k. I defaulted on them ages ago (long story), and they fell off my report ages ago. Nelnet has no record of me.

 

Fast forward to now. I'm done with that hideous long story and in the repair process. I'm headed back to school. One of the things I need to do is rehab my loans so that I am in active repayment. When I'm rehabbed, I should be able to apply for financial aid again in 2009. Yay!!! (note for those who don't know: You can't file a FAFSA if you're in default. This especially sux for those in states that have additional programs you can qualify for, but only if you file a FAFSA.... )

 

So, things stand thus:

-No SL on my CR

-$7.5k worth of default, about to go into rehab.

-Nelnet, the OC, does not have me in their current files.

 

The question is, what will happen to my report on beginning rehab? I *assume* the DOE puts it on all 3 CRA's, and it tanks my scores for the 9-month duration. Then, DOE removes all negative notations. When Nelnet gets it back, what will happen then? ALL previous activity with Nelnet is way past reporting SOL, so do they show only the current info, which is on-time payments? Or are they going to show 7 years of 120-day lates, and NOW positives?

 

Any ideas??

 

Thanks all!

 

A defaulted student loan does not prevent you from filing a FAFSA. In fact, you regain eligibility for federal aid after six consecutive payments. Whoever gave you that information was wrong.

 

I didn't see any negative impact on my reports or scores while making my rehab payments, only a huge increase when rehab was complete.

 

Also, Nelnet won't necessarily be buying back the loan. Whether it's back with Nelnet or with another lender, it will be a completely new loan with a fresh tradeline.

[Sharon_p]

I just finished rehab with my loans in December and they've been in repayment for three months now. When should I expect a chance in my CAs and scores? Right now my results are mixed...half of my loans are showing current, half are showing over 180 days late and some of the collections accounts are still showing up.

[Stryker]

Hi all!

 

Haven't found a similar situation on here, so maybe once I ask, i can compile an accurate picture of what will happen...

 

I had student loans with Nelnet, to the tune of about $7.5k. I defaulted on them ages ago (long story), and they fell off my report ages ago. Nelnet has no record of me.

 

Fast forward to now. I'm done with that hideous long story and in the repair process. I'm headed back to school. One of the things I need to do is rehab my loans so that I am in active repayment. When I'm rehabbed, I should be able to apply for financial aid again in 2009. Yay!!! (note for those who don't know: You can't file a FAFSA if you're in default. This especially sux for those in states that have additional programs you can qualify for, but only if you file a FAFSA.... )

 

So, things stand thus:

-No SL on my CR

-$7.5k worth of default, about to go into rehab.

-Nelnet, the OC, does not have me in their current files.

 

The question is, what will happen to my report on beginning rehab? I *assume* the DOE puts it on all 3 CRA's, and it tanks my scores for the 9-month duration. Then, DOE removes all negative notations. When Nelnet gets it back, what will happen then? ALL previous activity with Nelnet is way past reporting SOL, so do they show only the current info, which is on-time payments? Or are they going to show 7 years of 120-day lates, and NOW positives?

 

Any ideas??

 

Thanks all!

 

A defaulted student loan does not prevent you from filing a FAFSA. In fact, you regain eligibility for federal aid after six consecutive payments. Whoever gave you that information was wrong.

 

I didn't see any negative impact on my reports or scores while making my rehab payments, only a huge increase when rehab was complete.

 

Also, Nelnet won't necessarily be buying back the loan. Whether it's back with Nelnet or with another lender, it will be a completely new loan with a fresh tradeline.

 

Key word though is "after"... if you haven't started those payments, I don't think your application will be accepted.

 

OP: if I had to guess, I would agree with these posts. I don't think the old stuff would ever show unless a full factual is pulled. Past seven years and all.

[Saria]

Hi all!

 

Haven't found a similar situation on here, so maybe once I ask, i can compile an accurate picture of what will happen...

 

I had student loans with Nelnet, to the tune of about $7.5k. I defaulted on them ages ago (long story), and they fell off my report ages ago. Nelnet has no record of me.

 

Fast forward to now. I'm done with that hideous long story and in the repair process. I'm headed back to school. One of the things I need to do is rehab my loans so that I am in active repayment. When I'm rehabbed, I should be able to apply for financial aid again in 2009. Yay!!! (note for those who don't know: You can't file a FAFSA if you're in default. This especially sux for those in states that have additional programs you can qualify for, but only if you file a FAFSA.... )

 

So, things stand thus:

-No SL on my CR

-$7.5k worth of default, about to go into rehab.

-Nelnet, the OC, does not have me in their current files.

 

The question is, what will happen to my report on beginning rehab? I *assume* the DOE puts it on all 3 CRA's, and it tanks my scores for the 9-month duration. Then, DOE removes all negative notations. When Nelnet gets it back, what will happen then? ALL previous activity with Nelnet is way past reporting SOL, so do they show only the current info, which is on-time payments? Or are they going to show 7 years of 120-day lates, and NOW positives?

 

Any ideas??

 

Thanks all!

 

A defaulted student loan does not prevent you from filing a FAFSA. In fact, you regain eligibility for federal aid after six consecutive payments. Whoever gave you that information was wrong.

 

I didn't see any negative impact on my reports or scores while making my rehab payments, only a huge increase when rehab was complete.

 

Also, Nelnet won't necessarily be buying back the loan. Whether it's back with Nelnet or with another lender, it will be a completely new loan with a fresh tradeline.

 

Key word though is "after"... if you haven't started those payments, I don't think your application will be accepted.

 

OP: if I had to guess, I would agree with these posts. I don't think the old stuff would ever show unless a full factual is pulled. Past seven years and all.

 

I don't disagree with you; I was simply stating that a default status does not necessarily preclude one from filing a FAFSA or even obtaining additional aid.