Just made 9th rehab payment - what happens to credit score?, Rehab and credit score Options

[Tabitha1]

I just made my 8th rehab payment for Sallie Mae thru Pioneer Credit. They informed me that after completeing and submitting the refinancing info, Direct Loans will be refinacing the two loans ($6955). They said that a 9th payment will be due at the end of the month (3/28). After that I can expect a "significant change" to my credit score to appear in May. My EX score is 563.

Here is my question: Does anyone have any experience with going through this process and can tell me how significant this change was? Did it change that quickly?

Thanks for all the help in advance!!!

[Googie]

[LynnInMN]

I just made my 8th rehab payment for Sallie Mae thru Pioneer Credit. They informed me that after completeing and submitting the refinancing info, Direct Loans will be refinacing the two loans ($6955). They said that a 9th payment will be due at the end of the month (3/28). After that I can expect a "significant change" to my credit score to appear in May. My EX score is 563.

Here is my question: Does anyone have any experience with going through this process and can tell me how significant this change was? Did it change that quickly?

Thanks for all the help in advance!!!

Sallie Mae isnt involved with this transaction. They were paid off when you defaulted on it.

Is direct loans rehabbing it or consolidating it??How long have you been in default for?

[Tabitha1]

Pioneer Credit Recovery has only said that Direct Loans (DL) would be re-financing the loan. If I'm a month away from being out of rehab why would I be going back into it with DL? Therefore I assume (and will verify) that DL is consolidating my student loan. I went into default roughly Late 2005 early 2006.

[Tabitha1]

bump

[Credit Card Mana...]

I've been there and done that with direct loans. Here's what happened for me. I had to mak 12 months of payments, after the qualifying payment they sent me a letter from the collection agency telling me to wait for a letter from direct loans for new payments, I ended up not having to make a payment the next month but i was worried about it and called direct loans every other day until it was "back in their system" so they could make sure I wasn't missing a payment.

Now for the good stuff.

I had 3 loans defaulted and tons of lates.

The three loans were erased from the CBR's. (well 1 was left on eq but was removed with a simple online dispute)
One new loan was created with the total sum of the remaining balance.....the loan shows as being opened the same day the first loan was opened and it shows as current and never past due....not even a 30 day on there once. I can't tell you exactly what it will do for you because your other credit stuff will still affect your score but it removes your bad tradeline school loans and puts on a perfect one.... I jumped from 535 to 610.

[Jaymes]

The three loans were erased from the CBR's. (well 1 was left on eq but was removed with a simple online dispute)
One new loan was created with the total sum of the remaining balance.....the loan shows as being opened the same day the first loan was opened and it shows as current and never past due....not even a 30 day on there once. I can't tell you exactly what it will do for you because your other credit stuff will still affect your score but it removes your bad tradeline school loans and puts on a perfect one.... I jumped from 535 to 610.

Gosh, I sure hope that happens to me. My original SL (at the time it was called a GSL or Guaranteed Student Loan) originated in 1986. That's the one I defaulted on. It has long since stopped reporting. I would love for that to reappear with 23 years of history when I complete my rehab in two months. Is this reporting on all three of your reports?

[Credit Card Mana...]

yes it's on all three of my reports...

[Feech]

Thanks for this answer. I was curious myself. I am on my 5th payment of my rehab and it gets me down every month, because I'm still so far from it being done. Thanks for showing me the light at the end of the tunnel, if I were to get a bump like that on my reports I would be very happy..

[westernsky]

I finished my rehab in Aug 2008 after my ninth CA payment. My 3 loans were picked up with a local cu and I made my first payment in October (the month off was nice).
I don't know what my scores were before rehab, but during they were 570 range. After the rehab reported complete, and all of the bad default stuff went away, they jumped up to around 650. Since I had no credit cards or anything else reporting, besides my student loans, I immediately opened a few lines of credit and have been PIF ontime every month and my scores are now 720-ish. I can't wait until these age.

I can't believe how lucky I am to have had this opportunity. The rehab happened at just the right time; I was lucky there was a bank to pick up my loan right at my 9th payment and things just fell into place. I know ca's are notoriously hard to deal with, but the people I worked with at ERS were great to me and so were the people at Texas Guaranteed.

There is hope and a light at the end of the tunnel.
To the op and those going through it, in the end it is worth it.
I feel like I'm free and clear now... well about as free as you can feel with 25k in sl.

[Jaymes]

Westernsky, I'm curious. Did the new creditor report the opening date back to the date of the original loans, or was it the date they purchased the rehabed loans?

[westernsky]

Jaymes - My new lender has the original dates on the loans, not the new ones. Nice, no?

[Jaymes]

Very nice, Westernsky. I think that's what they are supposed to do. I'm keeping my fingers crossed that that's the way it turns out for me, of course that is if they ever find a lender to buy the loan. Six payments down, three (hopefully) to go. I may check with Patelco to see if they purchase SLs? If so, maybe there's something I can do to get them to pick it up. I already know PenFed stopped purchasing SLs.

[Feech]

Jaymes, make sure to keep us up to date with what happens..

[Jaymes]

Jaymes, make sure to keep us up to date with what happens..

Will do. I just made my 7th payment and I'm hoping financing starts to flow within the next few months.

[bassguppy]

GC Services is the CA that is handling my defaulted SL's. I made my 9th payment last month then they notified me that I had to continue to make payments for an additional 3 months. They stated that with the bad economy banks are reluctant to take on loans, they originally stated that NY higher ed lost their lender and they have to find a new one.

What incentive do they have to find a lender since this is delaying me getting out of default?

My loan originally went into default in Oct/Nov 2007 because I originally had a deferment but it came out and they had a previous address on file so no mailings at all.

[BLUEMOON78]

I am curious about this as well. I just had my 2008 federal tax witheld because of my defaulted student loan. I spoke with someone at HESAA who asked me why I hadn't already started a rehab program since I have been making on time payments for months - well because I had never heard of the rehab program before! Anyway, what he told me was that I make 9 payments on time and then they sell my loan and it is taken out of default & no more tax withholdings.

Has that been the case for everyone else? I really need to get this taken off of my credit report and stop having my tax refunds withheld

[Feech]

Who are you making your payments too? A CA?

[BLUEMOON78]

Who are you making your payments too? A CA?

I'm not sure if this was direct at me or not but I'm going to answer anyway. I'm making payments to HESAA

[Feech]

Sorry yeah it was for you. If your loan is in default you can if elgible enter into the rehab program.

[crappycredit13]

Just thought I'd add my experience to this:
My 9th rehab payment to Edfund / California Student Aid Commission was April 16th. I was offered the consolidation through DirectLoans to satisfy the rehab.

Called them yesterday to check on the status-- they placed the loan with an intermediate bank -- Greystone Bank -- while it's on its way to the DirectLoans program, apparently.

They said I should receive the "rehab complete!" letter in the mail shortly and the changes to the credit reporting will hapen within 30-60 days. If it doesn't happen in 60 days, they suggested filing a dispute with the CRAs.

My loan was originally with Citibank Student Loans. I knew it was a longshot, but I sent them a GW letter right before I made my last payment asking them if they could remove the negative reporting from their side as well [in addition to what CSAC/Edfund reports]. Their wording was vague, but in their reply it sounds like that they'll remove it if I send them a copy of the letter from Edfund stating that I satisfied the rehabilitation.

When all of this is done I will be happy.

[Feech]

Hey Crappycredit, Thanks for the update. It looks like there is some money flowing for these rehabs and thats good. Try to post your GW letter so some might be able to use it. Tell us how many negative TL's are reporting now, then follow up to let us know how many disappeared after it got reported. Also if you dont mind let us know your before and after scores..Thanks

[crappycredit13]

I'm not sure I kept the letter, but it had something to do with "the spirit of reconciliation" and getting the country back on track after the economic collapse, and the spirit of the rehab, while not requiring them to do this, would show a lot of good faith. Some profanity removed. Their reply seemed to be fairly boilerplate, so maybe this is something they specifically do.



I have 4 negative reports from Citibank STU, with $0.00 balances. "Collection/CO" on TU, "Late 180 Days" on EX, "Late 120 Days" on EQ.

I have 4 negative reports from CA STU AID, with balances. CO, CO, Late120. Condition: Derogatory. CO Status since May 2008.

I'll definitely follow up.
Before scores are roughly 540-580, with one collection on EX/TU, two CO credit cards (one now paid), and one judgment on TU (which should fall off May 1st if I'm lucky).

I'm crossing my fingers to a jump to 680 when all is done. But maybe wishful thinking.

This post has been edited by Stryker: Apr 30 2009, 02:03 PM

Reason for edit: profanity removed; please refer to TOS.

[Feech]

Thanks I'll keep my eyes open

[LostSoul]

Here is my experience:

I defaulted on 2 school loans. Which resulted in having my paycheck garnished for about a year. I called Edfund to enroll in rehab program. They stopped my garnishment and federal tax refund offset immediately, but continued on with state refund offset.

I called Edfund when 9th payment was paid. They informed me that no rehab lender was available. I received a letter from Edfund regarding direct loan consolidation application once rehab is complete. It stated on the letter that they will hold onto the completed consolidation application until my rehab is complete and wanted me to complete the form and sign it and return it to them in the next few days or so. I signed and mail it back to the the next day.

10th rehab payment was paid and I finally received the rehab completion letter from Edfund. Rehab lender is Greystone Bank/SAF. They are responsible for transferring my loans to Direct Consolidation Loan Program. The letter also stated to look out for a loan consolidation package in the mail in the next few days. That it is very important to sign and return the documents ASAP. But I received nothing for 20 days since I received the rehab completion letter.

Being paranoid and not wanting to miss any payments. I call SAF to see whats going on. The confirmed that they have my file and I verified my contact info with them to make sure they have everything correct. They informed me that my file was due to be in their system the next day and that I would receive statements from them until my consolidation paper is finalized with DirectLoan.


** checked my credit file using backdoor and noticed that the 2 negative accounts from Edfund is completed deleted from my EQ file ( took about 3 weeks after I received the completion letter) , nothing has been added in replacement to those yet. No changes to TU or EX yet. EQ fako went up 80 points but that just fako. I'll pull the FICO once everything updates on my reports.

This post has been edited by LostSoul: May 5 2009, 05:23 PM

[Feech]

Thanks Lost, thats a huge jump. I hope for the same. Your lucky they wouldnt stop my garnishment for nothing. How long ago was that? How far did the loans go back. I wonder if I call and ask them to stop the garnishment if they would?