Citibank approved me for rehab of defaulted student loans. I have done everything they asked and completed their every request. Time was up three months ago. I've written and called...but the negative info still remains on my credit files. I received a letter in the mail today stating the negative info will remain for seven years...no mention of the rehab program. I have notes of all my faxes, calls, and the customer service rep I spoke with that set me up under the program. How can I get them to honor it?
Grace

Since Citi offers both federally backed student loans and private signature loans, make sure you have Stafford student loans. These are the only loans eligible for gov't rehab.

If you are sure they are Stafford loans, send Citi a notice cmrr that you are going to refer their inaction to the US Dept of Ed. Once you have done that, call the Ombudsman's office at the US Dept of Ed to start the process. This should put enough pressure on Citi to cause some action. If you had Citi signature loans, they are not eligible for the gov't rehab program and the Ombudsman won't step in.

Grace

Unfortunately, under federal regulations they are only REQUIRED to remove the default status. They are allowed to continue to report lates and such. Dept of Ed has issued "Dear Colleage" letters suggesting and urging that all negatives be removed, but they can not require it. If, as snowpuppy pointed out, they are not Stafford loans, then Dept of Ed has no say period.


fla-tan