Few years ago, my husband's CR had several student loans on them. Now, none of them are on the credit report, but he received a letter from CA (pioneer Credit recovery, and payment supposed to go to US dept of education.)


I understand that student loans are very different from regular debt. How should I proceed? It's not on the CR now, but how can I prevent them from reporting? How would he "rehab" the loan?

Thank you in advance for any help!

Have you checked all three CRAs? My son's Perkins loan went to a CA, we didn't know about it, turns out they only report to TransUnion.

Unfortunately, federally funded students loans are very different. No SOL, being one of the major difference. That being said, I do fee obligated to pay student loans. I am now in the process of investigating this Perkins loans that fell out of the sky for usuary law. Interest rate seems very high to me.

I have found the CAs that deal with student loans to be a little more human than the CA trolls that collect on credit card debt, etc. Just my opinion.

You can call and make payment arrangements. If they are not reporting, let sleeping dogs lie.

My hubby made a payment arrangement on the phone with CA. I hope he can pay it off by the end of this year.....

Thanks for the advice!

SNB -

I did my rehab with Pioneer. You said your hubby made a payment arrangement with them - was it a rehab? Pioneer was actually easy to work with. They never once reported anything to the bureaus, so hopefully it'll be the same for your hubby.

Thanks, cheech! DH is getting his loan "rehabbed". They asked to put little over 300 dollars for the first month, 200 something for the second, and 100 dollars for the third month until 12th month. He said they were nice over the phone.

Well, being nice is no guarantee that someone is telling the truth or not. But in this case, I can say that Pioneer never hassled me and they did follow the letter of the law on the whole rehab thing.

Are they sending your hubby his rehab agreement? I'd make sure he gets that so that there's no doubt about the arrangement. I think they sent mine within a week of making arrangements over the phone. If his experience is like mine, they won't put anything negative on his tradeline, they did process payments immediately, and they ended the rehab precisely on the day they said they would.

One thing to keep in mind, if the lender who picks up the loan at the end of rehab moves slowly (which mine did), you might end up making a 13th payment to Pioneer just to keep things current. I had to do that since my lender took 6 weeks to process the paperwork, but all of my payments were credited properly.

--Cheech

Thanks again, cheech.

My hubby got the agreement faxed to him, and he signed it and he has to mail it back to them now.

I hope everything will work out, and once again, thanks for sharing your experience with Pioneer:)

Perkins is a Federal Student loan that comes directly from the school the student attended. It has a 5% interest rate fixed by Congress. You may be liable for collection and attorney fees, but not an accelerated rate.

To get away from any CA's, if you have other outstanding student loans, I would try the US Dept of Ed directly and see if you can qualify for a William D. Ford consolidation loan. In this case, the US Dept of Ed sees themselves as a lender of last resort. They are much easier to deal with than any CA.