How different is the reporting for a loan that went default?
If you do a rehab program, is it reported more favorably on your credit report then if you just left it in default?
The reason I ask is, when my "guarantor" (see i've learned something already) took over my loan, they contacted me, and we set up a payment plan where they took a small payment directly out of my checking acct each month. At that time, I thought I was entering a "rehab" program. So about a year and a half go by, and I call them up to check on my default status. They informed me that it was never put in a rehab program, but i could enroll in one then. Yikes., At that point I had less than a year left of payments, so I never would have fully rehabed the loan.
If I was able to get that loan "rehabed" would I have a more favorable reporting to my credit agency.
I can see these student loans are tough ones.
I wrote a letter to Sallie Mae, but reading another post, I see it is prob. futile.
Full Version: How a default is reported
QUOTE(kelpy @ Jul 27 2006, 08:24 AM) 
How different is the reporting for a loan that went default?
If you do a rehab program, is it reported more favorably on your credit report then if you just left it in default?
The reason I ask is, when my "guarantor" (see i've learned something already) took over my loan, they contacted me, and we set up a payment plan where they took a small payment directly out of my checking acct each month. At that time, I thought I was entering a "rehab" program. So about a year and a half go by, and I call them up to check on my default status. They informed me that it was never put in a rehab program, but i could enroll in one then. Yikes., At that point I had less than a year left of payments, so I never would have fully rehabed the loan.
If I was able to get that loan "rehabed" would I have a more favorable reporting to my credit agency.
I can see these student loans are tough ones.
I wrote a letter to Sallie Mae, but reading another post, I see it is prob. futile.
If you do a rehab program, is it reported more favorably on your credit report then if you just left it in default?
The reason I ask is, when my "guarantor" (see i've learned something already) took over my loan, they contacted me, and we set up a payment plan where they took a small payment directly out of my checking acct each month. At that time, I thought I was entering a "rehab" program. So about a year and a half go by, and I call them up to check on my default status. They informed me that it was never put in a rehab program, but i could enroll in one then. Yikes., At that point I had less than a year left of payments, so I never would have fully rehabed the loan.
If I was able to get that loan "rehabed" would I have a more favorable reporting to my credit agency.
I can see these student loans are tough ones.
I wrote a letter to Sallie Mae, but reading another post, I see it is prob. futile.
If you had rehabbed the loans, the negative marks from the guarantor would have been removed from your report. Writing a letter to SM will do nothing here because they don't hold your loan anymore.
And in order for the loan to be successfully rehabbed, you have to have at least $1000 left at the end of rehab; it sounds like you would not at this time.
bummer.
I wrote a "goodwill" letter to Sallie Mae for late payments. I have a new account with them where I consolidated another student loan. I kissed their butt in the letter and said i'm very happy with them.. blah blah.
As far as the rehab goes. That stinks. When i started paying them I thought I was in the rehab program. I remember it being discussed. I don't know why I would turn that down. But after a year and a half of monthly on time payments I called and found out I wasn't in the rehab program. I obviously have a record of paying them. Do you think there is anyway I could have them change the status from back then? Or am I pretty much screwed?
I wrote a "goodwill" letter to Sallie Mae for late payments. I have a new account with them where I consolidated another student loan. I kissed their butt in the letter and said i'm very happy with them.. blah blah.
As far as the rehab goes. That stinks. When i started paying them I thought I was in the rehab program. I remember it being discussed. I don't know why I would turn that down. But after a year and a half of monthly on time payments I called and found out I wasn't in the rehab program. I obviously have a record of paying them. Do you think there is anyway I could have them change the status from back then? Or am I pretty much screwed?
QUOTE(kelpy @ Jul 27 2006, 08:51 AM)
bummer.
I wrote a "goodwill" letter to Sallie Mae for late payments. I have a new account with them where I consolidated another student loan. I kissed their butt in the letter and said i'm very happy with them.. blah blah.
As far as the rehab goes. That stinks. When i started paying them I thought I was in the rehab program. I remember it being discussed. I don't know why I would turn that down. But after a year and a half of monthly on time payments I called and found out I wasn't in the rehab program. I obviously have a record of paying them. Do you think there is anyway I could have them change the status from back then? Or am I pretty much screwed?
I wrote a "goodwill" letter to Sallie Mae for late payments. I have a new account with them where I consolidated another student loan. I kissed their butt in the letter and said i'm very happy with them.. blah blah.
As far as the rehab goes. That stinks. When i started paying them I thought I was in the rehab program. I remember it being discussed. I don't know why I would turn that down. But after a year and a half of monthly on time payments I called and found out I wasn't in the rehab program. I obviously have a record of paying them. Do you think there is anyway I could have them change the status from back then? Or am I pretty much screwed?
Can't do anything. If you don't have a high enough balance to rehab, a rehab cannot happen.
Paying on a default is still paying on a collection account. Unless a rehab occurs, your status will remain.
Sallie Mae will "file" your letter. You defaulted on a loan. Why didnt you consolidate this default in with your other consolidation??
I didn't consolidate it with the default loan, because for some reason they wouldn't let me. I can't remember the exact reason, but I do remember trying to put them all together. I had 3 orig. loans.
I just called NYSHES and he pretty much told me what you did. I wish I knew this stuff a few years ago, because I would have made sure I was in the rehab program. They say that they never received my rehab application, although they do see me paying on time since that point.
He suggested I write a letter to the correspondence unit describing my case.
One thing I learned in the credit forum, is that there are no requirements on how things are reported to credit reporting agencies. I'm hoping that is the case with SL's.
Oh and by the way, I def. don't have a high enough balance. My balance is $0.
I just called NYSHES and he pretty much told me what you did. I wish I knew this stuff a few years ago, because I would have made sure I was in the rehab program. They say that they never received my rehab application, although they do see me paying on time since that point.
He suggested I write a letter to the correspondence unit describing my case.
One thing I learned in the credit forum, is that there are no requirements on how things are reported to credit reporting agencies. I'm hoping that is the case with SL's.
Oh and by the way, I def. don't have a high enough balance. My balance is $0.
QUOTE(kelpy @ Jul 27 2006, 09:32 AM)
I didn't consolidate it with the default loan, because for some reason they wouldn't let me. I can't remember the exact reason, but I do remember trying to put them all together. I had 3 orig. loans.
I just called NYSHES and he pretty much told me what you did. I wish I knew this stuff a few years ago, because I would have made sure I was in the rehab program. They say that they never received my rehab application, although they do see me paying on time since that point.
He suggested I write a letter to the correspondence unit describing my case.
One thing I learned in the credit forum, is that there are no requirements on how things are reported to credit reporting agencies. I'm hoping that is the case with SL's.
Oh and by the way, I def. don't have a high enough balance. My balance is $0.
I just called NYSHES and he pretty much told me what you did. I wish I knew this stuff a few years ago, because I would have made sure I was in the rehab program. They say that they never received my rehab application, although they do see me paying on time since that point.
He suggested I write a letter to the correspondence unit describing my case.
One thing I learned in the credit forum, is that there are no requirements on how things are reported to credit reporting agencies. I'm hoping that is the case with SL's.
Oh and by the way, I def. don't have a high enough balance. My balance is $0.
I am in a similar situation. I called my guarantor about my loan that is in default and explained to them that I am trying to clean my credit. I asked them if the loan would be removed from my credit once I paid them in full. The answer was yes. They informed me that once the loan has been paid in full that they would send a letter to the credit bureaus.
QUOTE(markelltyrell @ Jul 28 2006, 02:19 PM)
QUOTE(kelpy @ Jul 27 2006, 09:32 AM)
I didn't consolidate it with the default loan, because for some reason they wouldn't let me. I can't remember the exact reason, but I do remember trying to put them all together. I had 3 orig. loans.
I just called NYSHES and he pretty much told me what you did. I wish I knew this stuff a few years ago, because I would have made sure I was in the rehab program. They say that they never received my rehab application, although they do see me paying on time since that point.
He suggested I write a letter to the correspondence unit describing my case.
One thing I learned in the credit forum, is that there are no requirements on how things are reported to credit reporting agencies. I'm hoping that is the case with SL's.
Oh and by the way, I def. don't have a high enough balance. My balance is $0.
I am in a similar situation. I called my guarantor about my loan that is in default and explained to them that I am trying to clean my credit. I asked them if the loan would be removed from my credit once I paid them in full. The answer was yes. They informed me that once the loan has been paid in full that they would send a letter to the credit bureaus.
Get that in writing!
QUOTE(markelltyrell @ Jul 28 2006, 04:19 PM)
QUOTE(kelpy @ Jul 27 2006, 09:32 AM)
I didn't consolidate it with the default loan, because for some reason they wouldn't let me. I can't remember the exact reason, but I do remember trying to put them all together. I had 3 orig. loans.
I just called NYSHES and he pretty much told me what you did. I wish I knew this stuff a few years ago, because I would have made sure I was in the rehab program. They say that they never received my rehab application, although they do see me paying on time since that point.
He suggested I write a letter to the correspondence unit describing my case.
One thing I learned in the credit forum, is that there are no requirements on how things are reported to credit reporting agencies. I'm hoping that is the case with SL's.
Oh and by the way, I def. don't have a high enough balance. My balance is $0.
I am in a similar situation. I called my guarantor about my loan that is in default and explained to them that I am trying to clean my credit. I asked them if the loan would be removed from my credit once I paid them in full. The answer was yes. They informed me that once the loan has been paid in full that they would send a letter to the credit bureaus.
Only thing they will report is that the collection account is paid...paid collection. Nothing is removed until the reporting SOL is up. DOE requires accurate reporting and deletion is not accurate.
QUOTE
Only thing they will report is that the collection account is paid...paid collection. Nothing is removed until the reporting SOL is up. DOE requires accurate reporting and deletion is not accurate.
But, if they were to rehab successfully does it remove the negs?
QUOTE(ZicMan @ Jul 28 2006, 06:39 PM)
QUOTE
Only thing they will report is that the collection account is paid...paid collection. Nothing is removed until the reporting SOL is up. DOE requires accurate reporting and deletion is not accurate.
But, if they were to rehab successfully does it remove the negs?
Only from the guarantor on FFELP loans...so if you have a lender like Sallie Mae or Citibank, those negs still remain.
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