On my 8th Payment of SL Rehab

[GoHooterGo]

I've read on here where some state they will remove the SL TL from your CR's and sometimes they won't.

 

Here is the agreement I've signed with them:

 

- Removal of your student loan(s) from default status.

- Removal of the default status reported by Original Creditor from all major consumer reporting agencies' reports.

- Eligibility for all remaining periods of deferment or forbearance.

- Eligibility for new financial aid to return to school.

 

Then I have a copy of what they call a "Roadmap to Student Loan Rehabilitation"

 

Listed as reasons "Why Rehabilitate Your Student Loan?"

 

- Your loan will return to a CURRENT status.

- You will no longer be subject to offsets on TAX RETURNS or GOVERNMENT PAYMENTS resulting form THIS defaulted loan(s).

- Our client will remove its negative report of this defaulted student loans(s) from all three (3) major credit bureaus.

- You will be eligible to request more TITLE IV LOANS and GRANTS.

- Make NINE (9) CONSECUTIVE, ON TIME MONTHLY payments

 

So, to me it looks like after the 9th Payment, and once a new lender picks it up, the TL will be removed from my Reports and a new Loan will appear? Thoughts?

[GoHooterGo]

I've done some reading on here and Online Searches.

 

Most of everyone says that their Student Loans are Reported TWICE. However, my Student Loan is only reported ONCE.

 

I have ONE (1) LOAN, which was for a little over $2,000.

 

I defaulted on this Loan, which Great Lakes Educational Loan Services Inc (GLELSI) is the company that I was supposed to be paying. I did pay a few payments on this loan, but then had to stop due to unemployment.

 

I have no idea what kind of loan it was, but I know I got Financial Aid using the FAFSA Application. I believe I qualified for a Federal Stafford Loan?.

 

So, after I defaulted on the Loan, it was sent to DCS (Diversified Collection Services) which pulled my Report and hit my EX Report with a Hard INQ XX/2009. Then 2 Months later, they hit TU and EQ with a Hard INQ. Later that Month, I called and started my Rehab, which I had to make 9 Involuntary Payments.

 

Here is how the TL Appears on my Credit Reports:

 

SLM ENTITIES/GLELSI #123456789

2401 International

POB 7859

Madison, WI 53704

 

Loan Type: Student Loan

Remarks: Student Loan Perm Assign Govt

>Maximum delinquency of 90+ days occurred in XX/200X for $XXX<

Estimated date that this time will be removed: XX/2015

 

Balance: $0

Date Updated: 10/2009

High Balance: $2,000

Terms: Monthly $50

 

Pay Status: >120 Days Past Due

Account Type: Installment Account

Responsibility: Individual Account

Date Open: XX/2006

Date Closed: XX/2009

 

---------------------------------------------------------------------------------------------------------------------------------

 

So, now I read my Rehab Paperwork again, and I notice this:

 

Claim of: Great Lakes Higher Education Guaranty Corporation

Original Lender: BONY ELT AS ELT FOR SLM ENTITIES

 

So, I'm confused.

 

If the SL is being reported as SLM ENTITIES/GLELSI what will be removed? Will this entire TL be removed and a NEW TL be reported?

Edited July 30, 2010 by GoHooterGo

[nikki10]

I have or had the same questions regarding how my original student loan is reporting, so I called the Department of Education. The guy told me that ALL Negative information is suppose to be deleted from the original student loan. He explained that the point of getting your loan into rehab is so that it will look like things are current.

[GoHooterGo]

I hope so.

 

If I get this TL removed from my Reports, it would be a HUGE boost to my Score.

[FreakN]

My Original Lender was Sallie Mae. I defaulted and the loan was taken over by the Guarantor LOSFA. I rehabbed through LOSFA and the loan was bought by EdFinancial and the LOSFA TL's were deleted and Edfinancial TL's show current all the way back to the time I took the loan out with Sllie Mae...Sallie Mae Still Remains as a Derogatory on my CR's. I'm pretty sure this is how it's supposed to report. Not sure.

[GoHooterGo]

But I don't have Sallie Mae even on my Reports.

 

The only TL on my Reports is 1 TL that has my OC and Guarantor all on one TL. I don't know what will happen, but I'll find out in a few months at the most.

 

27 More Days till the 9th Payment. I'm going to call and see if I can make that final payment early and see if I can get the process started on finding a new Creditor to take up my loan and remove this TL from my reports.

[FreakN]

Were you able to make the final payment early? I made a payment a few days before the due date back when I rehabbed my loan and they credited it back to the previous month. I called them and the CSR was nice enough to credit it to the following month but she warned me to not do that again as the rehab is done to prove to the potential buyer of the loan that you are capable of making monthly payments on time.

[LynnInMN]

You cannot make payments early....the requirement for rehab is that you make "timely" payments. Too early or too late, they dont count and you will have to start all over again.

[babyarho2010]

My TLs were updated to remove the "default" status, however, the previous (year old) lates remain....and - I had to make TWELVE payments before a lender repurchased my loans....YMMV.

[FreakN]

How's this going GHG?

[kynov]

Yeah, don't expect your rehab to be over in 9 months... I am going on month 12 now. I have seen some people on here at around 18 months. The DOE told me its the economy and there is nothing they can do about it.

[NWJenA]

I just got through rehabbing my Sallie Mae loan through USA Funds and I made the last payment early and sure enough it was too early and I had to wait an extra month. It was so frustrating because they called me and said I could make it early so that my loan could be included with the next loan sale... anyhow, I am now officially rehabbed. My loan was picked up by AES and SunTrust and I make my first payment on 9/11. As of the last few days, USA Funds came off my reports completely and my EXP FAKO went from 638 to 702 and my EQ FICO went from 641 to 656. It will probably come off TU in the next few days.

 

So now I'm just waiting for the new TL from AES/SunTrust to appear.... I am also curious about how Sallie Mae should be reporting. I know that the original late payments will stay, but it never mentioned DEFAULT, so there is nothing to update... what should it say under comments and status on Sallie Mae??

 

I wonder if my scores will go up or down when the new TL reports??

[FreakN]

My Sallie Mae loans show as Transfer/Sold in the Activity Description on my EQ Report and Pays as Agreed in the Current Status. They are still considered negative though due to the lates in the payment history.

[GoHooterGo]

 

Well, heres an update.

 

9/1 - My 9th and FINAL Payment was credited.

9/20 - Great Lakes takes control of my loan again on behalf of SunTrust Bank.

 

The above image is THE ONLY Tradeline relating to my SL to EVER Show up on my report. Now, my question is, will this account stay on my report or not? I really want this one gone.

[GoHooterGo]

Here is the agreement I've signed with them:

 

- Removal of your student loan(s) from default status.

- Removal of the default status reported by Original Creditor from all major consumer reporting agencies' reports.

- Eligibility for all remaining periods of deferment or forbearance.

- Eligibility for new financial aid to return to school.

 

So, what does this do? It seems like every person I talk to, I get a different answer. Patience is the key here, but I want to know what's going to happen and when, so I can plan my Credit Repair around it. If I know it's coming off in a week, I'd start shopping for a new Credit Card in the Score Range where I think I'll be and try to maximize the most out of my INQ.

[goughjustin]

 

Well, heres an update.

 

9/1 - My 9th and FINAL Payment was credited.

9/20 - Great Lakes takes control of my loan again on behalf of SunTrust Bank.

 

The above image is THE ONLY Tradeline relating to my SL to EVER Show up on my report. Now, my question is, will this account stay on my report or not? I really want this one gone.

 

I am Rehabbing now... any update on this?

[cod]

1

Edited March 13, 2011 by cod