Should I finish consolidation?

[Jaymes]

A year ago, I began the rehab process of a very very old SL that was no longer reporting. With there being no lenders to assume the rehabbed loans, I called the DOE, who said I should consolidate with DirectLoan. I submitted my consolidation app in May, heard nothing from them, checked the status frequently and it kept saying its in "CERT" status.

 

However, shortly after I made my 9th payment, I got a letter from DOE saying that the loan servicing center was taking over the responsibility of servicing my loan. I checked the DL website a couple of times after that and it was still showing "CERT" status. I just assumed that something fell through the cracks.

 

My loan is now reporting to all three and the TL was backdated to the original loan date.

 

Today, I received a summary sheet from DL. One thing that was weird is that the interest rate is lower (by quite a bit). I don't know why.

 

But my questions are regarding credit reporting.

 

Will the entry from the loan servicing center remain on my report? If so, I assume they'll just report as paid and show a zero balance.

 

Also, will the DL TL be backdated to the original date of the loan?

 

Thanks for any guidance.

[Jaymes]

Anyone?

[crappycredit13]

Looks like I made it there faster than you did. I'm now consolidated with DirectLoans, after rehabbing with EdFund/California, which placed it with StudentAidFoundation inbetween the rehab and DL's certification and taking of the loan.

 

Final results looked like this:

Original Citibank loans aren't cleaned up.

Edfund entries are deleted.

StudentAidFoundation entries are backdated to the start of hte loan, show a full clean payment history. Shows now as "sold/transferred" with a $0 balance and closed.

One tradeline for DirectLoans for the complete, with a start date as of the the date it moved to DirectLoans [that one DOES NOT get backdated].

 

 

Overall, it's worth it. Some minor fluxuations with my score throughout all of it.

[Jaymes]

Thanks for the info. I thought I had heard that the DL doesn't get backdated. Now I have a couple of days to decide if I still want to proceed with the consolidation. It takes about $18 a month off my current payment for 10 years.

 

Thanks again.

[crappycredit13]

Thanks for the info. I thought I had heard that the DL doesn't get backdated. Now I have a couple of days to decide if I still want to proceed with the consolidation. It takes about $18 a month off my current payment for 10 years.

 

Thanks again.

 

 

It took about $15-$30 a month off of my payment, as well. Very nice.