I sent a "Pay in Full for Delete and they denied it, but offered me the chance to "Rehab" The loan. In the letter they sent, they claim " After 12 months of consecutive, on-time, payments the loan is considered 'Rehabbed' and according to federal regulations we can send notification the the CRA requesting all credit history, in regards to this account, to be removed". Has anyone done this? I have my doubts and don't really trust them.
Thanks

it is a federal law. they pretty much only try to scam you by making you make larger payments than you can afford. negotiate down to something you can handle and you should be set.

I rehabbed my student loans and they tacked on an extra $4,500 in collection fees to succesfuly rehab my student loan. thats the only catch I had with them. my new total for loans was 31,000 after the "Collection Fees" btw my loans were defaulted less than a year before I rehabbed 4,500 seems like a lot of money for collection fees. They didn't even send it to a CA they just sent it to thier own default department.

I rehabbed my student loan and it worked just as described. After the 12 months the loan went to Sallie Mae and all negative info was wiped from my credit report.

You may not have rehabed your loan. After you make the 12 months of payments the collection fees are wavied. You can have the loan moved from collections and negative credit reporting removed without making the entire 12 months (make 6 payments), but the collection fees remain.

I am 100% positive I rehabbed my loan, like I said they never showed up as a CA account, just that they were defaulted under the OC (AES). I have paperwork from them stating I completed the rehab and I had to sign it and send it back to them to officially complete my rehab. In that paper I had to sign stated I agreed they add the cost of collecting the account (4467) dollars to the original loan amount. This was just done at the end of march so I am still waiting for my CR to be updated. Can't wait cause on my TU I will only have one Small Collection Account left from like 5 years ago.

You may not have rehabed your loan. After you make the 12 months of payments the collection fees are wavied. You can have the loan moved from collections and negative credit reporting removed without making the entire 12 months (make 6 payments), but the collection fees remain.[/quote]

Could you explain that portion of your response? I rec'd a letter from the Ombudsman's and the rep said I had to pay off the collections cost, past due interest and late fee's during the 12 month period. That will be rough for me, original amount was $641, new amount is over $2K with collections, etc. :roll: I've completely ignored my situation as the CA hasn't validated and I'm really not interested in contacting them to remind them I'm still around.

Are you sure thats not interest that accrued? I had 10k worth of student loans at the end of 97 which I never paid. Thanks to interest, I now have a $15k balance. If you haven't paid in a while, the interest gets ugly.

"You may not have rehabed your loan. After you make the 12 months of payments the collection fees are wavied. You can have the loan moved from collections and negative credit reporting removed without making the entire 12 months (make 6 payments), but the collection fees remain."


I am in the rehab program and completing my 8th payment per the 12 month agreeement. Can some PLEASE explain to me how to have the negative credit reporting removed PRIOR to making the entire 12 months..
Understanding the collection fees will remain for the remainder of the 12 month period, I just want to try to have my fico scores increase and the 20 (120) lates on the CRA is tanking my scores..

Really appreciated!!!!!
Brenda

"You may not have rehabed your loan. After you make the 12 months of payments the collection fees are wavied. You can have the loan moved from collections and negative credit reporting removed without making the entire 12 months (make 6 payments), but the collection fees remain."


I am in the rehab program and completing my 8th payment per the 12 month agreeement. Can some PLEASE explain to me how to have the negative credit reporting removed PRIOR to making the entire 12 months..
Understanding the collection fees will remain for the remainder of the 12 month period, I just want to try to have my fico scores increase and the 20 (120) lates on the CRA is tanking my scores..

Really appreciated!!!!!
Brenda

i also recently began the rehabbing process and included in my first payment slip from the dept of education, there was an agreement saying that "if these payments will not pay off this debt within six months, this agreement may be reevaluated every six months." does this mean that the post from above is correct and that it is possible to have negative remarks removed after six months?

This doesn't pertain to your questions, but I wanted to ask if you were contacted by a CA about your defaulted loans or the OC, and if so, did you ask for validation? And were you given validation?

As far as getting your credit cleaned up before your full 12 months of rehab are up, did you sign a repayment contract, maybe taking it up with the oc or ca might be helpful.

i wasn't contacted by anyone...i finally have the means to take care of these loans and want to assume my responsibility for them.

as to your question, the only contract i have is this slip included with the payment envelope and it says absolutely nothing about having negative credit items removed in neither 12 months nor 6 months. should this worry me? it's directly with the government so i don't feel like there will be any problems. for obvious reasons though, i'd like to try to clean my report of these as soon as possible.

This is from the Ombudsman's office, 'Once you complete rehab, your loan will be removed from default and returned to good standing. In addition, the school will remove default info from your credit record. Delinquencies reported prior to the default aren't impacted.'

In my case, for 7 years, I didn't know I was in default, I have no adverse credit remarks. I've been waiting on validation for 5 months. :?:

This is the Fed Regulation regarding how a previously defaulted student loan is to be reported to the national credit bureaus:

The section you are looking for is as follows: 34CFR682.405 c2 which is:

(2) The guaranty agency must report to all national credit bureaus
within 90 days of the date the loan was rehabilitated that the loan is
no longer in a default status and that the default is to be removed from
the borrower's credit history.

Hope this helps!
Gail

I know it is a federal regulation, but does that apply only to federal student loans or ALL student loans? I have a College Access Loan through Hinson-Hazlewood and they will not remove the derog history after rehab.

snowpuppy wrote:
This is the Fed Regulation regarding how a previously defaulted student loan is to be reported to the national credit bureaus:

Is this also the same for someone who has completed seven (7) months into the 12 month Rehab. agreement. I am wondering could I dispute the payment history to potentially remove the 120 late payments considering I am approaching the completion of the Rehab. OR, should I just wait until the rehab is completed and the seek to have the "clean" reporting history.

Please advise with thoughts, comments, etc.
B

msp

The Federal Regulations concerning rehabilitation of Federally Guaranteed Student Loans only deals with Federally Guaranteed Student Loans. State guaranteed and private loans are not covered.


fla-tan

I just finished the 12 month payment period through NCO for defaulted student loans from New York state. Checked my credit report today and everything is gone.

Considering I owe ~$6K, the monthly payment they requested was only $90, which I thought was very fair.

Two more student loan baddies to go!

That is really a low monthly payment. Glad they didn't try to take you for a ride. I still have never heard back from the CA, and considering how I am feeling physically, I'm not going to.