Hi Folks,
I defaulted on my loans and then Edfund contacted me for payment. I was paying an outrageous amount per month to them for a period of time (I think it was 12 mos) because they tacked on collection fees. After the 12 months, I was eligible for Consolidation though DirectLoans (William D.Ford). That made my monthly payments much lower.

I called Edfund today to verify that my loans had been rehabbed and they told me that they only see record of me consolidating, which also takes the loan out of default status. They are reporting the loan as a Paid Collection Account.

Please forgive the newbie question - does this look really bad on my report? What can I do to make this better?

Thanks!
Wendy

there need not be a formal agreement to rehab the loans.

if you can prove that you sent 12 on time VOLUNTARY payments that where of a satisfactory amount (they told you how much to send) then your student loans where rehabbed.

I would get a copy of the Higher education act, outline the rehab laws and photocopy your 12 checks and send that to them.

here is the link to the 1998 version, not sure if there is an update, still searching.


http://www.ed.gov/policy/highered/leg/hea9...a98/sec464.html

My student loans are in Ch 13 now - from reading this paragraph it sounds like 12 consecutive payments through a Ch 13 plan would also qualify?