Help with Late Pay Removals on Nelnet Account - Student Loan

[Petarded86]

My wife has a couple of collections and some negative info from a student loan that she defaulted on a couple of times. I have attached a screenshot of her payment history on student loan account being serviced by nelnet.

 

 

 

 

After doing some preliminary research, it looks like GW letters are rarely successful especially for multiple late pays. I was reading up on the loan rehab program, but this does not look like it is an option because my wife is currently paying as agreed. I am having trouble finding a clear strategy for her situation.

If my wife defaults again on payments is there a way to rehab loan and get all negative info removed? Is this a wise strategy? Any other options?

We can afford to make payments now that we are both working so that's not the problem just want to minimize its impact on her credit score. I appreciate any help or guidance offered. Thanks and will keep posting updates.

 

[hodap2001]

Rehab is a one time deal...if she defaults again then it's Tax Offset and Administraive Wage Garnishment only until the loan is paid in full.

 

Do you have any proof that the lates shouldn't exist (ie proof of payment, active deferment or forbearance??) if not, then there is nothing they can do for you.

[Petarded86]

Yeah, she really doesn't have any excuse for default.

 

So she has never participated in any program to rehab loan. Is this not really an option for her? I wish we knew when she went into forbearance again we could have just applied for rehab then.

[jdz78]

My wife has a couple of collections and some negative info from a student loan that she defaulted on a couple of times.

 

I don't understand this. How did she get out of default "a couple of times"? There are only three ways to get out of default, that I am aware of, consolidate (if applicable), rehab, or PIF. Which of these options has she already done "a couple of times"? Rehab is one and done, if you "re-default" too bad according to the DoEd.

 

 

I would not recommend allowing a student loan to go into default just to rehab. Once rehab is complete, a new student loan trade line is issued, but the old account still lists the old late payments for 7.5 years.

 

 

Good luck, whatever you do!

[Petarded86]

 

My wife has a couple of collections and some negative info from a student loan that she defaulted on a couple of times.

 

I don't understand this. How did she get out of default "a couple of times"? There are only three ways to get out of default, that I am aware of, consolidate (if applicable), rehab, or PIF. Which of these options has she already done "a couple of times"? Rehab is one and done, if you "re-default" too bad according to the DoEd.

 

 

I would not recommend allowing a student loan to go into default just to rehab. Once rehab is complete, a new student loan trade line is issued, but the old account still lists the old late payments for 7.5 years.

 

 

Good luck, whatever you do!

 

 

So what I mean by multiple defaults is she is 120 days late pays, then reports as current, then she is late again. Here is what it looks like on Transunion:

[jdz78]

It sounds like she hasn't ever truly defaulted on this loan. (sent to a collection agency to deal with until paid or rehabbed). That's great news! She could write a goodwill letter to try to remove some of the lates, but as you stated, it's a crap shoot. There are examples in this forum that have worked though. I cannot think of another way to remove legit lates other than just wait them off (7-7.5 years) and try to maintinan on time consistant payments from now on. Good luck!

[hodap2001]

Has your wife missed more than 270 days worth of payments?? It sounds like she never officially went into Default and she made one lump sum payment to keep her loans from officially going into default.

 

What excuse is your wife providing that she cannot afford to make her regular monthly payments? I am here to help - there are a ton of repayment plans available where her student loan payments could be as little as $0.00 a month!! Yes, you read that correctly, it could be as little as $0.00 a month under an Income Based Repayment Plan.

 

There should never be any excuse to not pay the student loans with all of the affordable low monthly payments now available.

 

There is no hope in removing those late payments and I highly doubt a GW will work.