OK.. i am working on my husbands credit report right now. We defaulted on his student loan last may. We went to small claims and she agrees to do mediation so we did not get a judgement, but our account was accelerated.. So it shows all as past due on my credit report.
At that time they would not rehab me.. i am not sure why.. but i believed them..
So after reading this i contacted her again today and asked her about the rehab. She said it was changing from 12 months to 9 months, but she was not sure when.
We are currently paying $150 a month on a $3000 balance.. She said if i wanted to rehab, the whole balance had to paid on the 12 months. Is that true? it is a perkins loan.
HOw much will the rehab help me.. does it take away all the bad??
My husband is getting a bonus from work in July. and then another in February. I asked her if i could pay $150 from now-july (if it is 9 month rehab) OR from now til February if it is still 12.. then in the last months make larger payments. (for example $150 for 8 months and then $450 the last for months.. i could put the bonus money in a separate account to pay the remaining balance of the loan in the 4 months. OR is it better for me to just pay it off in july and be done with it and forget the rehab.. or will rehan be that good for me.??? thanks!
Full Version: Student loan default
QUOTE(AnneZ @ Apr 24 2006, 09:52 AM) 
OK.. i am working on my husbands credit report right now. We defaulted on his student loan last may. We went to small claims and she agrees to do mediation so we did not get a judgement, but our account was accelerated..
Defaulted balances are always accelerated.
So it shows all as past due on my credit report.
You mean his report, right??
At that time they would not rehab me.. i am not sure why.. but i believed them..
Mediation as part of your agreement may prevent you from rehabbing. Your account is technically in a legal status. If they allow you to change the terms of the mediation and you dont complete it, they would have to do the court thing all over again.
So after reading this i contacted her again today and asked her about the rehab. She said it was changing from 12 months to 9 months, but she was not sure when.
We are currently paying $150 a month on a $3000 balance.. She said if i wanted to rehab, the whole balance had to paid on the 12 months. Is that true? it is a perkins loan.
Rehabs require 9-12 payments. Once the qualifying payments are made, the remaining balance is rehabbed and put back into a current standing and the negative remarks are removed.
HOw much will the rehab help me.. does it take away all the bad??
My husband is getting a bonus from work in July. and then another in February. I asked her if i could pay $150 from now-july (if it is 9 month rehab) OR from now til February if it is still 12.. then in the last months make larger payments. (for example $150 for 8 months and then $450 the last for months.. i could put the bonus money in a separate account to pay the remaining balance of the loan in the 4 months. OR is it better for me to just pay it off in july and be done with it and forget the rehab.. or will rehan be that good for me.??? thanks!
It doesnt work that way. There has to be a balance to rehab. You cant pay it off and expect the tradeline to disappear.
Defaulted balances are always accelerated.
So it shows all as past due on my credit report.
You mean his report, right??
At that time they would not rehab me.. i am not sure why.. but i believed them..
Mediation as part of your agreement may prevent you from rehabbing. Your account is technically in a legal status. If they allow you to change the terms of the mediation and you dont complete it, they would have to do the court thing all over again.
So after reading this i contacted her again today and asked her about the rehab. She said it was changing from 12 months to 9 months, but she was not sure when.
We are currently paying $150 a month on a $3000 balance.. She said if i wanted to rehab, the whole balance had to paid on the 12 months. Is that true? it is a perkins loan.
Rehabs require 9-12 payments. Once the qualifying payments are made, the remaining balance is rehabbed and put back into a current standing and the negative remarks are removed.
HOw much will the rehab help me.. does it take away all the bad??
My husband is getting a bonus from work in July. and then another in February. I asked her if i could pay $150 from now-july (if it is 9 month rehab) OR from now til February if it is still 12.. then in the last months make larger payments. (for example $150 for 8 months and then $450 the last for months.. i could put the bonus money in a separate account to pay the remaining balance of the loan in the 4 months. OR is it better for me to just pay it off in july and be done with it and forget the rehab.. or will rehan be that good for me.??? thanks!
It doesnt work that way. There has to be a balance to rehab. You cant pay it off and expect the tradeline to disappear.
yes.. it is his report not mine. I am sure i am confusing people.
I guess my ultimate ? is.. pay in full in July and be done.
OR
ask them if can pay different amounts each month of the rehab. so if it was a 9 month rehab i would pay $150 for 4 months and then $450 or so for 5 months. (i am not sure if you can do that with the payments though, she thought they may have to be the same for the full 9 months) i cant pay $450 per month right now.
So IF i rehabed does it only show the good of the tradeline? or after rehab will it still show as a default and that i was always late? (even though i make the scheduled payment on time, it is always late because of the acceleration) am i making any sense? i am a little overwhlemed
I guess my ultimate ? is.. pay in full in July and be done.
OR
ask them if can pay different amounts each month of the rehab. so if it was a 9 month rehab i would pay $150 for 4 months and then $450 or so for 5 months. (i am not sure if you can do that with the payments though, she thought they may have to be the same for the full 9 months) i cant pay $450 per month right now.
So IF i rehabed does it only show the good of the tradeline? or after rehab will it still show as a default and that i was always late? (even though i make the scheduled payment on time, it is always late because of the acceleration) am i making any sense? i am a little overwhlemed
QUOTE(AnneZ @ Apr 24 2006, 10:13 AM)
yes.. it is his report not mine. I am sure i am confusing people.
I guess my ultimate ? is.. pay in full in July and be done.
OR
ask them if can pay different amounts each month of the rehab. so if it was a 9 month rehab i would pay $150 for 4 months and then $450 or so for 5 months. (i am not sure if you can do that with the payments though, she thought they may have to be the same for the full 9 months) i cant pay $450 per month right now.
So IF i rehabed does it only show the good of the tradeline? or after rehab will it still show as a default and that i was always late? (even though i make the scheduled payment on time, it is always late because of the acceleration) am i making any sense? i am a little overwhlemed
I guess my ultimate ? is.. pay in full in July and be done.
OR
ask them if can pay different amounts each month of the rehab. so if it was a 9 month rehab i would pay $150 for 4 months and then $450 or so for 5 months. (i am not sure if you can do that with the payments though, she thought they may have to be the same for the full 9 months) i cant pay $450 per month right now.
So IF i rehabed does it only show the good of the tradeline? or after rehab will it still show as a default and that i was always late? (even though i make the scheduled payment on time, it is always late because of the acceleration) am i making any sense? i am a little overwhlemed
I'd probably complete the rehab schedule. I'm getting trained on Fed consolidation loans for taking apps. Complete the rehab in whatever time length you want. You have the fed right to rehabbing your loan. According to my training manual. Once rehab has been successfully completed, DOE will be advised that your loan is no longer defaulted. Plus about 4 months after completion, they will remove the default from your record. Plus your loan will probably get sold off to a different company.
I'd check with the servicer to verify that they would report your loan in good standing if you successfully complete rehab. B/c what the training manual says, isn't necessarrily what happens in the Real word.
per http://www.fsahelp.ed.gov/rehab.html
QUOTE
# Rehabilitating your loan(s) removes the default status of previously defaulted loans at completion of the process. National credit bureaus are notified when the loan is no longer considered in a default status.
# After the loan has been rehabilitated, you regain all benefits of the Title IV loan program, including any remaining eligibility for deferment or forbearance, from the date of the rehabilitation.
# After the loan has been rehabilitated, you regain all benefits of the Title IV loan program, including any remaining eligibility for deferment or forbearance, from the date of the rehabilitation.
QUOTE
I'd probably complete the rehab schedule. I'm getting trained on Fed consolidation loans for taking apps. Complete the rehab in whatever time length you want. You have the fed right to rehabbing your loan. According to my training manual. Once rehab has been successfully completed, DOE will be advised that your loan is no longer defaulted. Plus about 4 months after completion, they will remove the default from your record. Plus your loan will probably get sold off to a different company.
I am not sure i understand. I was told that because the balance was accelerated that i have to pay the loan in full in 9-12 months (whichever it is) to rehab it. so after i finish the rehab there would BE no account to sell. Our account is not still with the University, even after the default
QUOTE(AnneZ @ Apr 25 2006, 08:59 PM)
QUOTE
I'd probably complete the rehab schedule. I'm getting trained on Fed consolidation loans for taking apps. Complete the rehab in whatever time length you want. You have the fed right to rehabbing your loan. According to my training manual. Once rehab has been successfully completed, DOE will be advised that your loan is no longer defaulted. Plus about 4 months after completion, they will remove the default from your record. Plus your loan will probably get sold off to a different company.
I am not sure i understand. I was told that because the balance was accelerated that i have to pay the loan in full in 9-12 months (whichever it is) to rehab it. so after i finish the rehab there would BE no account to sell. Our account is not still with the University, even after the default
You're missing the point. If you pay the loan in full, you won't be rehabbing it. In order to REHAB a loan, there must be at a minimum $1000 after you have made the 9-12 months of payments.
QUOTE(TxQuiltGirl @ Apr 25 2006, 09:23 PM)
QUOTE(AnneZ @ Apr 25 2006, 08:59 PM)
QUOTE
I'd probably complete the rehab schedule. I'm getting trained on Fed consolidation loans for taking apps. Complete the rehab in whatever time length you want. You have the fed right to rehabbing your loan. According to my training manual. Once rehab has been successfully completed, DOE will be advised that your loan is no longer defaulted. Plus about 4 months after completion, they will remove the default from your record. Plus your loan will probably get sold off to a different company.
I am not sure i understand. I was told that because the balance was accelerated that i have to pay the loan in full in 9-12 months (whichever it is) to rehab it. so after i finish the rehab there would BE no account to sell. Our account is not still with the University, even after the default
You're missing the point. If you pay the loan in full, you won't be rehabbing it. In order to REHAB a loan, there must be at a minimum $1000 after you have made the 9-12 months of payments.
OK.... so that was what everyone else knew that i didnt.. i am getting it now.. i was so confused because my husbands loan officer at the university told me that because it was accelerated it would have to be paid in the rehab time in full so xxxx amount of equal payments for 9 or 12 months.. so she is wrong?? tha balance is $3000 so i could technically stay with my $150 payments each month for 9 or 12 months.. and then have it rehab.. then continue with payments again.. (am i getting closer yet..) if not please someone just spell it out for me.. and where do i find this info in print to show her.. i am not sure she (the loan officer) really knows what she is talking about.. and i dont want to miss out on the rehab of it..
QUOTE(AnneZ @ Apr 25 2006, 10:51 PM)
QUOTE(TxQuiltGirl @ Apr 25 2006, 09:23 PM)
QUOTE(AnneZ @ Apr 25 2006, 08:59 PM)
QUOTE
I'd probably complete the rehab schedule. I'm getting trained on Fed consolidation loans for taking apps. Complete the rehab in whatever time length you want. You have the fed right to rehabbing your loan. According to my training manual. Once rehab has been successfully completed, DOE will be advised that your loan is no longer defaulted. Plus about 4 months after completion, they will remove the default from your record. Plus your loan will probably get sold off to a different company.
I am not sure i understand. I was told that because the balance was accelerated that i have to pay the loan in full in 9-12 months (whichever it is) to rehab it. so after i finish the rehab there would BE no account to sell. Our account is not still with the University, even after the default
You're missing the point. If you pay the loan in full, you won't be rehabbing it. In order to REHAB a loan, there must be at a minimum $1000 after you have made the 9-12 months of payments.
OK.... so that was what everyone else knew that i didnt.. i am getting it now.. i was so confused because my husbands loan officer at the university told me that because it was accelerated it would have to be paid in the rehab time in full so xxxx amount of equal payments for 9 or 12 months.. so she is wrong?? tha balance is $3000 so i could technically stay with my $150 payments each month for 9 or 12 months.. and then have it rehab.. then continue with payments again.. (am i getting closer yet..) if not please someone just spell it out for me.. and where do i find this info in print to show her.. i am not sure she (the loan officer) really knows what she is talking about.. and i dont want to miss out on the rehab of it..
Ok one more thing.. so if there was a balance left over after the rehab it would really be an advantage to us because we would then have an OLD TL that is no longer defaulted and we could go back to paying the $60 dollars we used to pay.. i think i am getting it, right?
i am just not sure if she knows what is going on, since she told me it had to be paid in full in the rehab timeframe
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