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Defaulted student loans, not on credit reports. Will loan rehab cause the default re-report on CR?

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Posted (edited)

Hi all. I have searched this site (and others) for the answer I seek and do not find it. If there is already a thread about this, could someone please post a link? Instead of griping that I don’t deserve to be spoonfed answers? Pretty please?


I have 20yo defaulted student loans which haven’t shown on my credit reports in years. Also notably, they don’t show on CAIVRS for whatever reason. 


I want to rehab the loans. The question is, if I do this now, will negative information (like the default) appear on my credit reports now? Obviously no payments have been made for a very long time. Obviously I would prefer NOT to have negative info be added to my credit reports now, after working so hard to clean up my credit. I would also hate to lose newly established credit lines because of this. 


But I do need to repay the loans and I understand that if I rehab them, this can ***remove*** a previously reported default from the CR. However, what I cannot find, is whether the UNREPORTED default will suddenly be reported (even if only temporary) when I start the rehab process??


Please and thank you for any insight. 

Edited by wwanderer

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I think I found the answer. According to this, defaulted DIRECT student loans that aged off the credit report and then get rehabbed, will be reported with original loan/consolidation dates and none of the previous negative history. So if that is correct, as long as you rehab the loans and pay on time, it can actually help the credit reports and scores. 




In my case that would drastically help my credit reports because I have very thin files with a  short history. For people rebuilding credit, this makes a big incentive to rehab and pay those old, unreported student loans. 

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