Student ReHab Program almost complete

[mcdavsh7833]

My question is I have 3 payments left in my ReHab program. So once this is complete, do I automatically get new load and I have new entries on my credit report where the previous ones stay on. I know they stay on but what gets reported to the credit agencies and what status will show .

[hodap2001]

Once you complete Rehabilitation, your loans will automatically be reassigned to a new Federal Loan Servicer and given brand-new trade-lines and your eligibility towards more federal financial aid is restored and your eligibility for deferments and forbearance. From the Guarantors perspective, the Default status will be removed from your credit trade-line; however, it is important to note that the original creditor (prior to default) will still remain and they are required to report your status for seven years from the date of default not the first date of delinquency so you will still have negative reporting from the original creditor - but that's standard.

[hodap2001]

duplicate post.

Edited June 11, 2014 by hodap2001

[mcdavsh7833]

ok. So with this new line, will I also have the option for a brand new payment meaning a lowering payment than my Rehab payment.

[hodap2001]

Yes, you could be eligible for an income driven repayment plan (I.e IBR, ICR, and Pay as you earn) as long as they are direct loans and not FFEL loans...talk to your new federal loan servicer for more information about lowering your payment, if your eligible.