I just received this letter in the mail ...

CONGRATULATIONS

YOU ARE ONE PAYMENT AWAY FROM REHABILITATING YOUR DEFAULTED DIRECT LOAN(S).

AS OF THE END OF LAST MONTH, YOU HAD MADE 11 CONSECUTIVE PAYMENTS TOWARD YOUR DEFAULTED DIRECT LOAN(S) ; ONCE YOU HAVE MADE THIS MONTH'S PAYMENT (WITHIN 15 DAYS OF YOUR SCHEDULED PAYMENT DUE DATE) THE DEPARTMENT WILL CONSIDER YOUR DIRECT LOAN(S) TO BE REHABILITATED, WHICH ENTITLES YOU TO MANY BENEFITS.

PLEASE CALL US AT (866) 894-2703 FOR INSTRUCTIONS ON MAKING THIS MONTH'S PAYMENT AND FUTURE PAYMENTS.

Woohoo, so what benefits will I get - hahaha - and what special instructions will I have to follow for this payment and future ones? I sure hope this helps my credit file!

Congratulations! Finishing rehab is definitely one of the best feelings.

The default notation will be removed from your account. You MAY see all negatived data from the CA removed, but no guarantees. It should help your scores some, but I can't say how much.

I cannot caution you strongly enough though ... do NOT stop making payments to the CA until you receive instructions from whomever purchases your loans and you have new info on where to send your future payments. And if you intend to consolidate, don't do THAT until the loans have been bought by another lender.

Again, Congrats!

I did this same thing but it did not make any difference on my CR. It still shows as a deliquent that was then purchased by Sallie Mae. I petitioned them to at least make a notation that it was paid in rehab but no go!! I also had to contact them to get my tax (interest paid) infor. I paid thru RAB in Tenn....

Thanks for the replies.



WoW I sure hope they don't do that to me, I might not take it so easily.

I entered into rehab thinking it would be good for my CR; having read that negative info was removed at the recommendation of the DOE. I was also told that late fees and penalties would be removed once the loan was rehabbed. Hopefully they don' renege on any of those statements.

Will I have the option to choose who purchases the loan (I would hope so)? I dont want to work with any of those troublesome companies!

If your loan is or was a Direct loan, it will stay a Direct Loan. Your credit report will be cleared. The poster with a Sallie Mae loan has a FFELP loan, which is a totally different program. FFELP lenders such as SM are not required to change the CR based on rehab. Only the guarantor is required to do this.

CONGRATULATIONS!!! I just made my first... well second attempt... in clearing up my defaulted Student loan today! I cannot wait until I get the same letter! Wish me luck!

Goodluck! I just made my seventh payment

Thats good news, thanks Lynn!

And good luck to you girlyjen78 and for that matter e1 else!

Thank you! I need it! I will be making my 2nd payment next week!

There's no sign of my rehabilitated student loan on EQ, not sure if it was on there before I had been scared for a few years to check my report. Haven't gotten copies of the other two reports yet so I will see if they're on there.

Ok, now I am a bit worried and not sure I should be ...

I just got a letter in the mail today from an ACS saying that my DOE account had been placed with them for immediate collection.

Can they do this while in rehab? Is this some over zealous CA trying to make a quick dime by sending out a letter on an open account? What should I do? Call the DOE and complain or call ACS and tell them I have rehabbed the loand and to F off?

I would recommend that you call the 800 number you listed in the first post and ask them what the heck is up!

Your account is not officially rehabbed until the loan is transfered back.

That # goes to guess who? ACS!!!!

The letter had the USDOE seal and letter head on it ... thus when it states "call us" I assume I would be calling the DOE. NOPE!

So why did ACS send me a letter saying I was one payment away from rehab and then follow that up with a letter saying it was now turned over to them for immediate collection?

Something seems very fishy here and god help me if I get screwed over some how.

Ok, it seems that the letter for immediate collections is automatically generated when ever an address is updated. Since I updated my home address when I called to check for payment instructions the letter was automatically sent.

I was assured that everything was in order, they received my 12th payment and the account was scheduled to be reviewed by Friday of this week.

Lordy that auto-letter just about gave me a heart attack!

It's disturbing to read that some people complete rehab and there's no change on their CR. I finished rehab and am concerned this might happen to me.

I will be really mad if nothing changes on my report. I could have consolidated my defaulted loans at 4.1% prior to the rate hike last July (now, I'm at 6.1%), but I was in the middle of rehab and chose not to. The only reason I stayed in rehab was to get the default notations cleared.

Huh??? Where are you reading this?? Your current loan holder will adjust your CR within 90 days AFTER you complete your rehab. Those are the rules per the HEA. However if you had an OC like Sallimae or Citibank, they are not required to make any adjustments.

UPDATE



I just got a letter today stating that my account has been rehabbed and that it has been transferred back to the direct loan servicing center from the direct loan collection dept.

They also said that they have instructed the CRA to delete records of the default and that I am once again eligible for many benefits.

Hopefully in a month or so I will see all of those TLs removed from my CRs!

WooHoo!

Congratulations! I too received the same letter on 3/11/06.

Congratulations! I too received the same letter on 3/11/06.

Now lets see how quick the CRAs update our CRs ... (assuming it was on yours)

My Direct Loan account is now Current on EQ.

They have 90 days from the date of rehab to update the CR. It is a manual function so do not expect anything to happen overnight.

Wow - that was quick for you! So what changed? Did they remove all negative data? Did they just change the Default status to Current, paying as agreed or what?

They are all still on my reports I reckon they will use all 90 days and teach me my lesson as afforded by the laws. My payments did drop by half from what they had me paying in rehab though, so I guess I can wait 90 more days.

CONGRATS!!! It is such a good feeling isn't it!

All negative information was deleted. I now have 1 account with Direct Loan that shows current. EXP is still showing derogatory information in the comments section. (student loan permanately assinged to government). Huge increase in score.

I halfway through rehab (6 mo.). My loan is originally through AES, but was transfered to SalliMae at some point. My CR lists several accounts from both. Does this mean that even when rehab is completed, I'll still have the Sallimae negatives on my CR?

Yep. That's what it means.

OH BOY OH BOY - I cant wait, I guess now is a good time to sign up for privacy matters!

WOO HOO !!!!! I am clean and it didnt take them the full 90 days !!!!!

My scores jumped as much as 200 pts !!!!! WOO HOO - time to go drink a few cold ones!

Now if I could get that handful of meds off there I would be closer to 800 - YES!

Well, Congratulations! All I can say is NOT to stop payments on time and that will get you going. Cool!

Congratulations!!!

UPDATE!!!

I got THE LETTER stating that I have finished the rehab on my loan and will be reporting that to Credit Bureaus! I am so SUPER excited. It seemed like a long road ahead when I initially posted here stating that I was starting rehab! I am so happy I did. I can't wait to check my scores! I wish I could remember what they were last year around this time!

Congratulations! I finished rehabbing a direct loan last month and am still waiting for it to update. Is it possible to speed this up with a dispute? The letter I got said that it should update within 30 days.

Did your FICO score jump 200 points or was that your FAKO score?


I know this post is old, but I really hope I can get an answer because a 200 point FICO increase would be amazing.

I did have a significant jump... 60+. A lot has to do with the thickness of your file.

http://creditboards.com/forums/index.php?s...=289156&hl=

Wow! A 60 point jump...I can only hope to have that much of an increase. I will be making my 9th payment 12/29. I pray that they don't take the full 90 days to update my reports.

Stryker, you mentioned in the thread that you linked that you disputed the negatives off your reports before the 90 days were up.

I read your response to a poster that asked about the disputing, but I don't quite understanding what you meant by:



Can you explain what you meant? Sorry for being slow.

Just caught this, PC...

As soon as I completed rehab, I disputed the bad loan notations. These would have come off eventually, but I didn't wanna wait.

For the loan notations themselves, I GWed those off.