Okay, so student loans went out of rehab 2 months ago. All of my scores jumped, but not as much as I thought they would. I had just assumed that I had too much hope for the effect on my scores. Well I was looking at my reports in detail. My TU is clean (it also had a 50pt jump in score), my EQ show 1 120 day late from 2002 (it jumped about 20pts), my EX shows an account in good standing and two accounts in default (and of course the sum of those two accounts is equal to balance on the one in good stand! which tells me it just hasn`t been deleted).

I went a little crazy with my brand new shredder and shredded the document(s) that said my loans were out of default 2 months ago. Im applying for a loan this week and the LO asked me about the SLs and I was really surprised because I thought it was all taken care of by now (since I saw a modest jump in scores). Anyway I called direct loans and she said just wait 7 to 10 business days and call again (it may not have updated yet) also she said she can`t have them send a 2nd copy of the documents stating my loans are in good standing again.

Am I hosed? This could be a pretty clostly mistake in terms of interest rate. My closing date is 10/16.

I hope you're still making payments - otherwise, you just screwed up a year's worth of rehab.

If they said they can't send out the papers again ... well, I would call and ask someone else. Just tell them you need a letter for your mortgage company stating that all of the loans are out of default. I can't imagine that they'd be breaking some rule by doing that.

Going back to my original comment though - have these loans been picked up by someone else? Are you making payments on these loans now?

I'm all current and haven't missed any payments (I'm not gonna make that mistake again!) and the loans are from direct loans. The woman I talked to seemed confused at first, then put me on hold, and was able to give some answers when she got back to me. Though I don't think she had ever heard of the rehab program! When I asked about the document she said that stuff gets deleted off their system and they can't send it again (considering she didn't seem knowledgeable about the rehab program I donno if this is really true).

Long story short, I'm in 100% good standing with direct loans but they're either really slow at updating my CRs or have updated incorrectly.

Okay ... just checking.

It can take 90 days for them to update. BUT they should be able to send you a letter stating that you're in good standing.

I'll call again. Thank you for your advice!

It is quite understandable that a CSR from DL would not know what a rehab is...rehab is collection function and current DL accounts have nothing to do with rehabs.

I just closed on my mortgage in August and I was on payment #7 of rehab. As the loans showed defaulted, the lender asked for copies of cancelled checks showing on time, consistent payments. That satisfied them. Of cours, though, if you are looking at an FHA type loan, you wouldn't qualify because you've defaulted on a government obligation, but if you're loan product is another type of product, maybe they'd accept the cancelled checks as proof since it can take up to 90 days to report to the CRA's.

As far as the shredder - some documents should NEVER be shredded - You should have framed that rehab letter!