Help me understand SL REHAB please

[asgor313]

I completed student loan rehab program and paid all 10 payments with Direct Loans in August.
Sallie Mae picked up loan in August.
Made my first payment to Sallie Mae in September.
Old Negative trade lines were being reported along with new positive 1st payment.
I call direct loans and they take off old trade lines.
Now my whole student loan history of the past 10 YEARS have been deleted.

I was told upon completing rehab program my default status would be lifted and the past 10 payments would report as positive history and the negative missed payments prior to starting the rehab program would still report.

Well I called Direct Loans today and they said they were obligated to lift default and delete complete credit history of student loan and wipe slate clean. A month ago when I spoke to a rep I was told the past 10 payments of rehap would reflect positive which I was told prior to starting program.

 

 

Anyone gone through this before? Give me advice? anything I can send in to help?

[hodap2001]

OOPs, like we overlooked this post.

 

I can't say I have heard of this issue before - this is interesting? What have you done since posting this?

[scvbd99]

The same thing happened to 16 of my defaulted student loan tradelines that ECMC controlled. Once Sallie Mae picked them up after my rehab, ECMC deleted all of their tradelines...and it was a VERY GOOD thing for my credit report and score.

 

Is it a problem for you? If so, why?

 

Even if they removed the default status from the original tradelines, all of your late payments would have still shown, which would be not good for your reporst and scores.

 

Maybe I'm missing something here.

[FreeaAndClear]

There have been no change to my old tradelines yet. It has been a month and a half. Should I call?

 

Sallie Mae is already reporting the new line.

 

US Dept of Ed has the line listed twice with a balance so my credit report now shows I owe 3X what I actually owe! One of the lines, (with a balance!) hasn't been updated for a few years.

 

I would Love it if they would delete! But at least id like them to zero them out.

[scvbd99]

ECMC was the agency I did rehab with, and a month after my 9th payment, Sallie Mae picked up the 16 loans. It took ECMC another month to delete their tradelines, so for a month, I had ALL of the negative ECMC tradelines and ALL of the new Sallie Mae ones.

 

To make a long answer short, you should call whoever you did your rehab with, and ask them politely why they haven't deleted their tradelines since Sallie Mae is collecting on them now. Remember, though, the people you did rehab with don't have to delete the tradeline...all they're required to do is remove the default status. If there are late payments on them that reported accurately, they are free to leave them. I think I lucked out with getting the collection/default tradelines removed. ECMC was really excellent to work with. If the agency you're dealing with isn't as nice, you're basically just making a good will request to do anything besides remove the default reporting.

 

Hope that helps.

Edited January 6, 2014 by scvbd99