Dept of Ed Loans Still Reporting $0 balance

[credible]

Ok guys...

 

I've read thru alot of posts and hope my question isnt too redundant. Heres the situation:

 

I had about 9 Dept of Ed Directloans in default total. I went into the rehab program and then consolidated the loans. They were all given new terms and put in current status with the new program and loan company. The issues IS the loans all still show up on my credit reports as Dept of Ed Loan, $0 balance, 120 days past due. Does that make sense?

 

What can I do to change this. At this point I've cleared my entire report. These loans are the only accounts showing on my report currently. Once I get these off , I'd be able to get a few new revolving balances to rebuild.

 

ANY ADVICE IS WANTED PLEASE.

[pt0872]

You consolidated WHILE in rehab?

 

That could be your problem right there....you shouldve completed rehab then consolidated.

 

Others might chime in here, hopefully your not stuck with those old TL's now because of the consolidation.

[credible]

no i was told by DirectLoans that the only way to bring them out of default status was 6 months ontime payments (rehab). Then after completing that task, I did the consolidation. Now the new loans dont show up but all the old ones show up saying different things ranging from 0 balance open account , to paid off bad debt, to still showing the old balance saying 120 days late.

 

Basically I'm completely confused w/ this

[ziggypop]

no i was told by DirectLoans that the only way to bring them out of default status was 6 months ontime payments (rehab).  Then after completing that task, I did the consolidation.  Now the new loans dont show up but all the old ones show up saying different things ranging from 0 balance open account , to paid off bad debt, to still showing the old balance saying 120 days late.

 

Basically I'm completely confused w/ this

<{POST_SNAPBACK}>

 

Actually, pt was right -- you didn't rehab your loans, unfortunately. Rehabbing requires 12 on-time consecutive payments. Since you only made 6, you were eligible for consolidation, but did not complete rehab. Therefore, your loans will not be cleared of the default notation.

 

Who did you consolidate with and when? Those should show up, although if it was within the last couple of months, it might just not have done so yet. I think it took 2-3 months before my consolidation loans showed up on all of my reports. I did call them in the meantime, though, and checked to make sure that they did report. Since Direct isn't updated, either, it looks like it might be too soon. Your original TLs should all be updated to show closed/paid charge off/$0 balance. If it's been more than 90 days or so, you may want to contact them and make sure it's done properly.

 

Sorry this isn't better news!!!

[credible]

wow...yea looks like you guys are right. I as told that I was to make 6 consec payments by Direct Loans. I shouldnve gotten clearer info. Hopefully my scores will lift up a little bit when I get the old loans to all show $0 balances and the new loan show as current revolving debt.

 

Oh well....thanks for the input guys

[ziggypop]

wow...yea looks like you guys are right.  I as told that I was to make 6 consec payments by Direct Loans. I shouldnve gotten clearer info.    Hopefully my scores will lift up a little bit when I get the old loans to all show $0 balances and the new loan show as current revolving debt.

 

Oh well....thanks for the input guys

<{POST_SNAPBACK}>

 

They will improve. Long story, but I didn't end up rehabbing, either, even after 13 payments. But, my score did pretty big jump after DOE reported as closed/$0 balance (it does say paid charge-off, or whatever to that effect, though, on all three -- of course!!) and my consolidation loan started reporting. Note that you might see a little dip the first month or two that your consolidation loan starts reporting, just because it's a new TL and it drops your average age of TLs a little bit, but it jumps right back up.

 

Good luck!!