I have a loan with Sallie Mae. Its a joint consolidation but somehow they never got it onto DH's reports . I have told Sallie Mae numerous times both on the phone and in writing that I want to rehab this loan. They continued to have the GRC (CA) call me until I informed them they were calling a cell phone number and that it was illegal for a CA to call a cell phone because it made me incur charges. The CSR for the GRC was real nice and I told her I wanted to rehab this loan. That was about 2 weeks ago and no further contact. I sent email to omsbudsman office last week detailing how Sallie Mae is refusing to allow me to rehab. No response from omsbudsman yet. I need to get it started ASAP because we plan to buy a house next yr and I need as much rehab complete as possible. Sallie Mae has already stalled us so much we won't be complete with rehab prior to when we need purchase house, lease is up at end of April.

Is there anything else I can do to get rehab started?

Ok...you are getting things mixed up. Sallie Mae was/is your consolidation lender. When you default, the loan is charged back to your guarantey agency. Thus Sallie Mae is no longer involved. They are not stalling anything at all. That is probably why the Ombudsman has not contacted you.

GRC is the collection agency that is hired for that guarantey agency. They are the one who facilitate any rehab.

FYI...If you are in default and pursue rehab, you will not be able to qualify for a FHA/VA or most morgages until the rehab is complete. Payments for rehab are not reflected and the CA will not provide you with a payment history for the purposes of getting a new loan. So even if you start start rehab tomorrow, you are looking at approximately 13 months until your rehab is complete.

Before I told GRC they were calling a cell phone, I was being connected to GRC when calling Sallie Mae. Sallie Mae tells me GRC is collection agency for them. According to that national loan database website the guaranty is TEXAS GUARANTEED STUDENT LOAN CORP. Forbearance ended and payments were supposed to start back last July, I have made 1 payment since then so I am well over the 280 days required for the loans to be marked "default". Sallie Mae is refusing anything involving default & me rehabbing. I have sent them letters saying i wanted it sent to whoever it needed to be with in order for me to rehab. SAllie Mae is stalling on that. DH & I are both aware we won't qualify for FHA but we have other issues that would keep us from FHA if not repaired before April. We are planning on a subprime because our scores will be low, most of our CR are CA so we will have thin files once they are all gone.

I just need to know how to get Sallie mae to send my loan to the right place for rehab. Would it be possible for me to contact the guarantee agency myself to get the loan moved to them?

Sallie Mae only owns GRC, they do not send accounts to them. TGSLP would now be the holder of the loan and they would have hired GRC. You need to be talking to GRC, not Sallie Mae. You are barking up the wrong tree!! Sallie Mae is out of the picture!!!

Lynn, I am very confused because I can still log-in at Sallie Mae and the account info says : Your account has been turned over to a collection agency for further collection activity and you may be charged additional collection fees. You are in danger of defaulting on your student loan account and you need to resolve your delinquency now!

From everything I see about my loan, even on the student loan databse, it doesn't look like it has "officially" been marked in default. I am still receiving email notices from Sallie Mae and when try to call Sallie Mae and enter my SSN I get directed to GRC. I have told GRC I am only interested in rehabbing this loan, nothing else at all. Sallie Mae doesn't have a phone # for me because I only have a cell phone and I prefer to use email. I have written/emailed/verbally told both Sallie Mae and GRC I want to rehab my loan. To this date I have still not had any contact with the guaranty. GRC even tells me they are collecting for Sallie Mae.

What can I do or is there anyone @ Texas Guaranteed that can get the rehab started for me? We can handle payments now but want rehab to clear up the reporting.

Sounds like you might be in default aversion or cures. Call the CA and do what they tell you do to avoid default and 18.5% in collection fees.

Since you are not in default, you CANNOT rehab.

Call the CA!!!!

I spoke with GRC rep just a few minutes ago. Asked him about default and he said accts don't usually stay with them over 350 days. Asked him is anything other than default can remove the lates, he said no. He also told me how to get through to Sallie Mae.

So I guess the big question now is which will have a worse effect on me scorewise and also in future when applying ofr mortgage

1. Default & then rehab

2. Work out agreement now with Sallie Mae and then later try goodwill letter on the lates or even just have to do letter explaining for lates

If you default then rehab, you are still stuck with the negative Sallie Mae tradelines on your CR. Rehab only cleans up the guaranty agencies negative trade lines, not the originating lender.

Cure the default while you have the chance!