I have a Perkins loan dating back from 1999 in the amount of $750. I would apply for forebearance(s) and financial hardship(s) up until fall 2002. I was notified I finally reached my limit for applying for forebearance and financial hardship. Concurrently I was in school full time but due to my school status being 'distance learning' I figured that it would be complicated to send prove of 'in school deferment' papers (it was be doable but for some reason I just didn't do it and I had other personal problems that were occuring so I left it alone, I wish I didn't). During this time from 7/2002-9/2002 I was marked with '120 day lates' until I acquired the knowledge of Canceling part of my Perkins loan due to my Occupation. Since Feb 2003 up until now I have cancelled a percentage of my loan, my loan balance as of 3/2005 is about $374 (not bad). My problem is on my TU and Experian reports I have a '120 days late' I wrote a goodwill letter to the OC and I am willing to pay my balance in full if they can remove my '120 day late'. I just received a 'agreement packet for rehab' in order to get my '120 day late' off my credit report I have to participate in this 'rehabilitation'. I will be required to pay $30 a month for 12 consecutive months.(torture,I just want to get this over with) Now here's my questions:

1) I thought 'rehab' is only for defaulted student loans. my current status is
Open/Current was past due 120 days.(Experian)
Remarks: Student loan not in repayment(TU)
Maximum delinquency of 90+ occured in 08/2002
Status:Unrated


2) Can I retro my 'in-school deferment'? I was in school from 5/2002 until now, I graduate this month(I can provide proof now).Purpose of this would be that I was or should have been under 'In School Deferment' which means '120 days late' should not be valid?

3)My cancellation anniversary is every February. If I sign the 'aggrement' will I be still qualified for the percentage cancellation?

Any inpute of wisdom is greatly appreciated.

If the school still has your Perkins & not a collection agency, you might be able to get goodwill from them for the in-school deferment. Every school has a default rate that is published & they want these numbers as low as possible.

The only problem I can see is you said it was a 'distance-learning' program you were enrolled in. Feds require you to be enrolled at least half time (the individual school determines this status) and be 'degree seeking'. If you can get something from your current school's registrar that shows your status from 2002 to present, you might be able to make your case.

My school told me that once you go over 180 days late, then your student loan is automatically considered in default.

Update:

Well I spoke with my original creditor yesterday. I can't pay in full they want me to show a 12 month consecutive payments of $30/month then they will erase any deragatories on my credit reports after I pay in full. I did not have the option of retro-ing 'in school deferment' because I applied for the loan cancellation on 2002-2003 I guess that's fine. The account rep also said that I won't be able to apply for cancellation in feb 2006 because I will be participating in this 'rehab contract'. So once this gets going, on my credit report will this tradeline show
'REHAB,Student Loan' or something to that affect, if so that looks awful I hope it doesn't drop my score. On a positive note this will show "paid in full/never late' on April 2006 and then after. My goal is to purchase a home fall/winter 2006 timing will be perfect one less baddie on credit report.

That sounds good marshal!!! Thanks for coming back and updating us.