Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.

Sign in to follow this  

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

Recommended Posts

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

Share this post

Link to post
Share on other sites

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. 

Share this post

Link to post
Share on other sites

Are these Federal Student loans or Private Student loans. 


Federal Student Loan Default can be rehabbed only once, and contingent you make the on time monthly payments for 9 months. The "default" will be removed but the lates will not, However defaulted federal student loans are subj. to wage/tax garnishment, So over the last 20 years I am sure the Government got some of their money 


On the other hand, Private Student loans are subj. to the standard SOLs, and Credit Reporting as dictated by State and Federal Laws. 


As far as federal loans go, you are ineligible for any Federal Programs, Home loans, Student Aid, etc until they are out of default status. 

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Member Statistics

    • Total Members
    • Most Online

    Newest Member

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
  • Create New...

Important Information