I have $25K in SL. It says on my CR date opened: 03/99, date closed: 10/2000. pay status: collection account. collateral: 07 Suntrust Bank. terms: $25,438 for 36 months.

It seems to me that they would have received the last payment roughly in 10/01 since my wages were garnished up until then. But it says here 10/00. Also, they did grab at least one of my tax returns. I have no idea if it was applied but assume it must have been.

My question is what are the advantages of rehabbing? If I wait until October 07 does it go away? Will the loan be sold to another creditor or something? I've read old posts but I can't seem to find the answer to this.

WWYD?

The biggest advantage is PIECE OF MIND! At least for me that is the case.

Just because a loan would be scheduled to fall off your report does not mean it simply goes away. You'd still be subject to collection, wage garnishment, etc.

Are these federally insured loans?

How can I find out if it's federally insured? It lists US dept of ed as creditor. so I'm guessing yes (?).

Also, everything I've read seems to indicate that the SL itself won't go away as a debt. I get that. And I'd like it to be paid off. My questions are should I rehab? What are the advantages and disadvantages? What are my other options? Also, Lynn had asked me in a prior post how old the debt was. So that got me wondering is it advantageous to let this time out on my CR?

And is if this loan does 'fall off' the report, will it then be re-reported? What happens then?

thanks in advance.

By rehabbing the loan, you once again become eligible for additional funding (I believe this occurs at 6 months of on-time consistent payments) and at 9 months (used to be 12 months) your account is removed from default status by the guarantor. Prior negatives such as Sallie Mae, etc. remain, but the actual guarantor who is reporting the default will delete that status.

As far as timing out on the CR, I'd let Lynn address that.

Thanks so much, Nan

Sun Trust was your lender or bank. Looks like the claim was paid by your guarantor 10/2000.
Your guarantor would have done any guarnishments. Rehabbing does not change any reporting for the lender...only the guarantee agency would be obligated to update any tradelines if you rehab a loan. And yes, it will report until 10/07.