After a rehab is finished, what does the credit report "look" like. From the paperwork I got from the CA:

"Once your loan(s) are rehabilitated and are no longer in default, the national credit bureaus will be notified to delete the derogatory credit rating previously reported by the guarantor in reference to the loan(s)"

So what happens to the negative TL's from the loan? does the negative stuff get wiped out and replaced with "paying as agreed" or something? do the KD stay and it starts reporting with new data?

I believe all of the lates are deleted from the old TLs and a new TL is created with the new loan, dated back to the original date of your first loan, which will be updated monthly going forward. I've read where people have reported a 90 point score jump once the reporting is all updated.

Jaymes your going thru this now right? I think I am following a post by you.

I rehabbed a Direct Loan. When all was said and done, all of my old TLs were deleted, and I was left with no trace of any previous negative notations. All I had was the new, single positive TL. I can't remember off the top of my head if it was backdated. Honestly, at that point, account age was the least of my concerns.

This is not everyone's experience. With FFELP loans, the guarantor's TL is deleted after rehab and a new TL is added. However, the old lender's TL remains, along with the old lates and negative status, until 7 years after the guarantor took over the loan. Some people might claim that this wasn't what happened to them, and that ALL negatives were deleted. If that's true, great for them. But people who enter rehab for an FFELP loan need to be prepared for the likelihood that they won't really get a clean slate on their reports when they're done.

Saria makes a good point, YYMV depending upon the loan type.

Age is what I'm really looking for out of rehab because my original loan is 23 years old. It has been off my reports for a long, long time, and if it backdates (keeping my fingers crossed and, if not, I'll call Direct Loan and find out why) I'll have a perfect 23 year TL; the thought of which gives me a credit orgasm. My average age of accounts will skyrocket, and this will by far be my oldest TL.

I have 3 subsidized and 2 unsubsidized Stafford loans. What does that mean as far as FFELP?

Could be either Direct or FFELP. Who was your original lender? If your paperwork said something like Direct Loans or William D. Ford Direct Loan Program, it was Direct. If it was someone else like Sallie Mae or Chase, etc. they're FFELP loans.

Sallie Mae..Now I'm depressed again

Hey Jaymes.

I'm pretty much in the same boat you are (although only 16 years as opposed to 23 )

Finished rehab with GC Services a couple of months ago - but with the state of the economy now - specifically lending and banks - no one was available to buy out the remainder of my loan (a measly $ 4,300). Heard from GC today and they told me that finally the DOE has found a lender that is going to take over my loan (ACS). My hope (and would love to hear from others who have a similar experience as ours) is that once this lender takes over it will show up on my credit reports as a loan that I have been paying out for years. Right now all I have showing is 2 measly secured credit cards for $ 300 and that's it. No negatives but no other positives either. I did try and get a personal loan from my bank (TD Bank) but was denied because I don't have any installment loans on my credit report so getting my SL to show up as me making payments on a large amount would be a HUGE help in being able to get a loan for say a car or even a house. Right now that seems next to impossible to be able to accomplish.

Anyone else have similar experiences with old loans that are out of rehab and are now on their reports as a positive?

Congrats on completing rehab. I have a topic I started a couple of weeks back (don't know if you saw it) that DOE advised me to consolidate with William D. Ford, so I have that going on. I just sent in the app on Saturday. I should be making my 9th payment at the end of the month (I'm going to make it as soon as my statement period closes).

Please let us know what happens to your reports and scores once your loan reports.

After I got done with Rehab, my score jumped about 100 pts. Now reads "Paid, Never Late" and was backdated. The best news on my credit report in several years.

Only thing is, my 100 pt jump just took my FICO from "Horrible" to "Very Poor". I still have work to do.

I am happy to report that all 3 credit bureaus now show my student loan. Loan is dated back to 1989 and definitely helps my "thin file".

My Equifax score went up a whopping 5 points to 759 and my Transunion actually went down 8 points to 689. Experian Plus Score is showing as 725 which is 2 points lower than what it showed a month ago.

Not sure why I didn't get that big boost but to be honest I'm not complaining on my scores. I'm just happy to have the additional trade line showing up!

-P.

Penone,

Congrats. I assume the scores you mention are FAKOs, which mean NOTHING! You'll want to go on and look at your actual FICO scores (of course, only two are available to you now!).

As an update on my situation, over the weekend I got a letter from the DOE stating that my rehab is complete and that they are transferring the file to the loan servicing center. So, I guess they didn't sell it, and my consolidation application with William D. Ford is pending. I may cancel the application, as it is pretty much a moot point since it's the all the same agency. I'll wait to see how my CRs are updated, and if everything gets backdated, I'll cancel the app.

I was also thinking that once I cancel the app, if I do, I may make payments for 6 months or so and then consolidate to Citi or USBank to get an additional TL. Just some things I'm mulling over now.

If you have a chance to check your FICO's, please let us know how it turned out.

Again, congratulations.

Jaymes

Hi Jaymes.

Nope - those are my actual Fico's (with the exception of experian - of course).

Question - why did you think those were my FAKO's?

-P.

I was thinking that they were FAKOs because you quoted your EX score. I just wanted to make sure. I'm at a loss as to why your scores didn't change much, but I guess I'd need a bigger picture of your current reports to try to figure that out.

Hey Jaymes.

No - that was my Experian PLUS score. Kind of sucks that we can no longer get our FICO Experian score but that's for another forum and thread.

What I have on my reports are the following:

Equifax - 2 secured cards from Dec 08 - both with $ 300 limits - 1 with a $ 52.00 balance and the other with a $ 105.00 balance. The Student loan showing an open date of 9/89 with a balance of $ 2700. An old Chase Card where I was an authorized user that has last activity on Feb 2001 (Note: This account is actually closed with balance paid in full but shows pays as agreed. From going through other forums on this board I've learned to never dispute a positive trade line and since prior to my student loan reporting it was my oldest line.)

Transunion - all of the above except 3 additional negative items for a collection that was taken off my report since it was not validated and now is back on again.

Experian - sames as Transunion.

Maybe it just takes awhile for the FICO scores to change?

-P.