I'm currently in month six of rehab for my defaulted student loans. I was curious if anyone has had any success in disupting information contained in the tradelines. Obviously, I would not want to lose the information completely as they have a lot of history behind them. However, it would be nice to lose the as of now outdated collection status. Is it possible to dispute? Or is that the point of rehab: a year of payments to prove yourself as retribution for messing up in the first place?

Does the TL state that the account is currently 120 days late? Mine does; it's quite annoying as the loan people state that that is how they want it reported. I'm researching whether this is within their right.

currently only equifax is reporting the loans as 120 days late. both experian and transunion just list them as collection accounts. it sounds like you've spoken with them regarding the 120 days late status? it would seem that the point of rehab is to hold off reporting to the CRAs updated tradelines until the rehab is completely finished. i'm definitely curious though if a dispute on the status of the loan would have any effect. looking at the us dept of education collection bill, nothing on it suggests that the loan is late or in default. no penalty charges and no fees have been apllied. they look just like the bills i received before default. i absolutely don't want to disrupt my rehab status nor do i want to anger the dept of ed at all with a dispute, but it would be nice to have those updated to reflect current payment history, even if the lates have to stay on until the rehab is completed.

Curious regarding this specific item of disputing while in rehab, I disputed (Equifax) while I am under a repayment of rehab. What came back was "verfied/updated -- current") and it listed the last 10 months of current history while in rehab.

It did not drop the tradeline; however, now recent history is reported as "current" with the 120 day status all prior to entering into the rehab agreement. I will complete my rehab status next month and wondering if this will now be "replaced" to "erase" the prior history. I am certainly going to continue to write the original lender or new lender in an attempt to remove any negative conotations of the entire tradeline.

Hopes this helps someone.

Here is how that works guys. And it sucks, but, your loans will continue to report derogatory marks on your credit report until the rehab completed. After that the CA tradeline are SUPPOSED to disappear all together and be replaced with new tradelines. So essentially all the 120 day marks while you were in the rehab ARE SUPPOSED to disappear. For equifax, at least your score should increase dramatically, cause they seem to be the only one who report defaulted loans with 120 day notations. But overall your score will increase as well

Ive read posts that it can take up to 90 days for them to fix the TL;s...please tell me it wont take that long.

Wife and I want to buy a home soon after rehab in November.

That is true. It may take a while to get your report to accurately display what it should. But that is just like any other debt. But you are lucky, in that if you work with Ombudsman you may be able to get things done faster.