Just started the 12 month rehab for my defaulted Perkins Loan. Am I correct in assuming that, once I complete the 12 timely payments, the TL will be removed completely from my reports? Or will the TL remain but be converted to a completely positive mark (Paid In Full)? And what happens to the record of lates that occurred before the default?

Regarding Direct Loans, I am currently in deferment on the loan I have with them. Unfortunately, there was a period where I didn't maintain the 1/2 time requirement and had a few lates that appeared on my CR. Is there anything that I can do to have these lates removed? The lady I spoke to recommended that I send a letter detailing the reasons for the lates. Any other approaches that I should consider?

Thank you in advance!!!!!

The answer: Perkins default TL converted to completely positive. Hopefully, this helps someone out there.

Congratulations on completing rehab...thanks for letting everyone know your outcome.

Is there a minimum amount that you need to owe for Perkins rehab? I think for Stafford loans it's $5000.

Most lenders have a required rehab balance around $1000.

Thanks Lynn.

A good will letter at this point is probably your best bet. Give it a shot; what's the worst that can happen? They may say no, but they might say yes too.

If that doesn't work, you can dispute the TL as never late with the CRA.

Good luck.

Thanks guys!

flcleo: My Perkins loan original balance is $1200. It doesn't get much lower in most situations.

TxQuiltGirl: I'm going to eventually going to try it. Since my original post, the lates have been 'inadvertantly' removed from 2 out of 3 bureaus when I put the loan back into deferment. The last time I disputed (before the deferment) they actually added even more negative information. Ever since then, I've been extremely careful not to awake the beast, so to speak.