2 replies to this topic

[tw0st3p]

Hey all, I have done some research on here and think I know the best way to go but wanted to see if I might be able to get a bit of reassurance.

I have one outstanding student loan in default with a balance of $2386.91. It is in collections with NCO Financial systems and the guarantor is Oklahoma College Assistance Program (OCAP). This is reporting on all of my credit reports.

Fortunately I am in a position to pay off the entire balance if that is the best option, however when I spoke to OCAP she said if I did that they would leave it on the credit reports, but marked "Paid". She was adamant that they would not remove this from my reports. She said in order to do that I need to setup the rehab program with the collection agency and make 9 consecutive payments on time, then it would be pulled off collections and the balance purchased by another loan company.

It seems the best option is to make the 9 payments and have it removed from my credit, and then pay it off in full with the new company?

Is this really the best option, rather than paying it off in full? That seems counter-intuitive.

Thanks for any help.

[snowpuppy]

Rehab is the best option if you want to clean your reports.

You may want to check with others here about your min balance and what you would owe at the end of 9 payments. Some here have said that their small loan balances are not eligible. SL's are in one hot mess right now so the accuracy of what any of these agencies tell you should be checked.

[tw0st3p]

Thanks for the info. I was leaning towards the rehab, however I wanted to be sure that was the best option for credit repair.