Consolidated During Rehab - Still Have Negative TL's

[HouseWife]

Because of pressure from a CA for Perkins Loan, I consolidated my Perkins and Stafford loans under direct loans while the stafford loans were being rehabbed. (Related link http://www.creditboards.com/phpBB2/viewtop...pic.php?t=52216) I thought at the time, that if I didn't include my Stafford loans in the consolidation, that I would not be able to consolidate them through Direct Loans once the rehabilitation was complete.

 

Long story short - they are being reported as "Insurance Claims" "Paid after chargeoff" "Paid Chargeoff". I'd really like to get the TL's update to read "Paid" or "Closed" and not as derogatories. I have disputed with the CRA's but it came back verified. I'm planning on sending a goodwill letter to NJHEAA, but don't hold out much hope.

 

Any other suggestions?

 

Thanks,

 

Housewife

[HouseWife]

Self-serving bump!

 

These TL's are the last things standing between me and decent credit. Please help.

[Havok]

OK I'll try to take a stab at this housewife to help you out. First of all you already know that you can rehab your loans. Even after rehab you can consolidate those loans. Since you consolidated your loans in rehab, they have not been rehabbed and therefore the negative TL's will remain. The OC's tradelines will be there likely until they fall off. The CA's tradeline will be there, but with some work you may be able to get them off your report. See with rehab, Its weird no one really knows what tradeline should remain. There are different experiences with the process, but the positive thing is you are supposed to get new tradelines for the loans after rehab, with an open date that of the originial loan. And that the CA's tradeline should disappear all together. The catch here is what happened to the OC tradelines. I know people have played dumb and those tradeline have also come off, leaving you with however many loans with a "Paid as agreed" on a installment loan that dated from the original loan. Essentially, no negative tradelines. In your case, not only can the OC tradeline remain, but so can the CA's. And you only end up adding one new tradeline, with a date of the consolidation loan. But you can always try a goodwill, but "not mine" will get you no where.

[HouseWife]

I don't actually have any CA TL's for my student loans. Just the OC's TL with the horrible status information.

 

According to PG, this account is the one that is hurting my scores the most. Should I just send a goodwill letter and throw myself on the merc of the State of New Jersey Higher Ed?

 

Housewife