After six months of disptutes, I have finally raised my credit score (one of them at least) to 779 points. I am currently in the 6th month of rehabbing a $16k student loan, and have 4 more months to go.

However, I have a $887.00 loan from the department of Education that I am willing to pay in full if necessary, but I believe the balance is too low to qualify for "rehab".

What is the best way to take care of this and to get the account to show paid in full and the collection deleted? I actually disputed ALL my student loans, and Equifax deleted EVERY SINGLE ONE!!! TU and EX did not, however.

So, some help from the experts, please!

Bump

Unfortunately you're right- it cannot be rehabbed.

You can't/shouldn't be able to get accurate info removed, but you can pay it and get it updated to show that.

Or....you could just wait until the fees and interest build up enough so that there would be a balance of 1k or more after the 9 payments...

That sucks...can I pay to delete?

Nope....that is not accurate reporting. Besides, there is no negotiation on paying a student loan...it is not something you can hold over their heads like other accounts. They will get the money one way or another.

Here is the actual balance:

Principal Balance: $834.64
Interest: $13.03
Fees & COsts: $ 203.44

Total: $1,051.11


What is the cut off for rehab? I really don't want this baddie on my report...

It's $1,000 after the 9 rehab payments, which are the greater of 1% of the total due or $50. So, unfortunately, after the 9 payments, you'd be way below the minimum.

Please note that rehab does not necessarily remove every SL baddie from your report. It only mandates that the guarantor remove the default notation. The OC doesn't have to remove anything and no one has to remove the late notations.

Sorry! Hope this helps!

ok Thank you for your help...

I guess the best way to go is just to pay the whole thing in Full? Will it then show as a "Paid Collection"?

I guess what I am getting at is how will it least affect my credit? I have the $$ to pay it....

ok Thank you for your help...

I guess the best way to go is just to pay the whole thing in Full? Will it then show as a "Paid Collection"?

I guess what I am getting at is how will it least affect my credit? I have the $$ to pay it....

That's probably really your only course at this point. Yes, it will show as a paid collection. Since it sounds like this is really your only baddie at this point, I don't think it will be much of a problem. Since I'm not sure if you really have any other options at this point, I don't know that there's any other way for it to affect your credit less than this way.

Another point, if you're considering disputing TU & EX again, there's something to consider. If you dispute, yes, they could delete. However (and this is a big however), not only could they not delete, but they could put it back onto EQ! I'm not saying they're going to put incorrect information on there or anything, but they could put the correct, but deleted, information back onto your reports. Just something to think about.

Good luck!!