What will Rehab Wipe Out when Completed?

[Gudziel]

I have a total of 16 loans, as some of you may have already heard me say before. I entered rehabilitation a few months ago for two lenders, AES and Sallie Mae. My rehab program is set to finalize in February for both lenders.

 

Now, I know that some TL's will update to show current, good status w/ "paying as agreed" once rehabilitation is successfully completed. I am also under the impression that other TL's will stay on my reports until they fall off, not changing status and infact staying as negative TL's. The problem I am having in trying to figure this out is understanding exactly which one's will fall off of my reports and which will update?

 

As you can see below, AES is reporting 33 TL's. This is why I am confused with my AES TL's. I was subjected to the 15% pay garnishment in '07, so I am unsure if this has anything to do with any of these TL's. They are also split a certain way between CR's and with these Dates Opened, I am completely confused. Can someone please let me know which will update and which will be left to stay of these TL's?

 

AES - 11 TL's - Date Opened: 12/07 (all 11) (Reporting only on EX & TU)

AES/BRAZOS - 11 TL's - Date Opened: 11/00 --> 6/04 (Reporting on all 3 CRA's)

AES/PHEAA - 11 TL's - Date Opened: 1/01 (all 11) (Reporting only on EQ)

 

Now Sallie Mae is a different story. I know that my 5 TL's for Sallie Mae were on there first. After I entered rehab, USA Funds had appeared on my reports (states defaulted). So, of these, which will remain until the 7yr mark and which will fall off?

 

Sallie Mae - 5 TL's - Date Opened: 05 & 06

USA Funds - 5 TL's - Date Opened: 05 & 06 (just started to report as I am in rehab paying their CA)

 

I know that Saria is always telling me, but I am not understanding my reports at all as the dates are odd and just the mere fact that over a total of 45 TL's for these lenders is hard to look at.

[Saria]

I would guess that the AES, AES/PHEAA, and USA Funds TLs will be deleted. Those look like the guarantor TLs to me. Hopefully Lynn will chime in on this one since she always seems so good at recognizing guarantor names and TLs.

[Gudziel]

Thx for your reply again Saria!

 

So AES/BRAZOS and Sallie Mae TL's will stay no there and will update? or not? If not, from what date will they fall since I have deferred them and whatnot?

 

Again I appreciate your replies Saria. As always, you are extremely helpful. I only posted this similar thread over in Credit Forum because there are always more viewers there and I just wasn't sure the next time you'd drop by this forum. Thanks again!

[Saria]

When you rehab a loan, the TL from the original lender remains. It's not updated, as that account was essentially closed when the guarantor paid them upon default. Lender TLs fall off 7 years from the time the guarantor paid the claim, right around the time of default.

[t-bear]

All reference to the default should be removed. What will remain is the original lender tradeline showing a zero balance and the payment history for that account as a "negative account" in your credit history.

 

It should be clear from the credit report that the original loan had lates in the past, but is now paid off, and is no longer either late or in default. 7 years from default it will fall off your report.

[Guest Joseph C]

This Thread is giving me "Courage" to not Consolidate, and instead Rehab (as i did last year, do it one more time i guess) my NJ HESAA Loans.. that will make AES/PHEAA (which i have) go away!!!

 

 

IIRC:

 

Guarantor = AES/PHEAA.. they GO AWAY when the loan is REHABBED

Lender = NJ HESAA ... IF i get a Payment Plan and REQUEST REHABILITATION with them, then THEY will update my GOOD PAYMENT STATUS of 9 or 10 months and AES?PHEAA will go away, and them SOMEONE ELSE (Direct Loan? Sallie Mae maybe?) will pick it up, as it is NOT DEFAULTED and IS REHABBED!!!

 

One question: Can i get a NEW SL to go Back to School BEFORE i do this? or AFTER i have made good arrangements with NJ HESAA?

 

[t-bear]

This Thread is giving me "Courage" to not Consolidate, and instead Rehab (as i did last year, do it one more time i guess) my NJ HESAA Loans.. that will make AES/PHEAA (which i have) go away!!!

 

 

IIRC:

 

Guarantor = AES/PHEAA.. they GO AWAY when the loan is REHABBED

Lender = NJ HESAA ... IF i get a Payment Plan and REQUEST REHABILITATION with them, then THEY will update my GOOD PAYMENT STATUS of 9 or 10 months and AES?PHEAA will go away, and them SOMEONE ELSE (Direct Loan? Sallie Mae maybe?) will pick it up, as it is NOT DEFAULTED and IS REHABBED!!!

 

One question: Can i get a NEW SL to go Back to School BEFORE i do this? or AFTER i have made good arrangements with NJ HESAA?

 

 

Are you saying you rehabbed a loan last year and now you want to do it again? I don't know how that is possible? It takes a year to finish rehab and go through the process of having your new loan sold and set up. If you mean you tried to rehab and didn't succeed, I don't know whether you can do it again. Maybe someone else knows if that is possible.

 

But no- you are not going to request a payment plan through your lender. Your lender has sold the loan. You are going to rehab the loan through a collection agency working on behalf of guranator and the dept. of education. You have to make 9 consecutive on time payments that represent a certain percentage of the loan to rehab the loan. After you have finished that, THEN the default from the guarantor is removed from your credit report. THEN your loan is purchased through a new lender and you establish a new tradeline.

 

All of that has to be finished before you can get any further student loans.