CREDIT Scored DROPPED 88 points!!!

Are you in rehabilitation? I've never heard of a CA consolidating student loans. Weird.

 

When you say 1 loan "broken up" into 8, do you mean it is being reported on each report 8 times?

If they were consolidated, this is what *might* have happened: After default, your Servicer (who will list the loan as in default on your CR) will send it to the guarator, who can also list it in default on your CRs. Now, when you consolidate (why did you "consolidate" one loan by the way?) it should list a new trade-line for the "new" loan.

So, I can see one loan being listed 3 times, with 2 of those times being listed as Default/collections, etc. I can't see how its being listed 8 times. Unless, the servicer listed it more than once (which they sometimes do because of "dispursements").

How and by who was it listed before this (i.e., how many times, by who, etc.)? How and who is listing it all these times now?

 

Hmmmm. Who was Servicing Corp when you "combined" those 7 loans and how were/are *they* reporting it? It seems like each was sent to the Guarantor, who is listing 7 times as in default.

Who consolidated these? Is it through one of the Dept of Ed's programs? The CA (who was hired by the Dept of Ed) probably knew about this program and wanted you to go through with it so they could get paid. Check your balances, they might have also tacked on lots of collection fees, etc.

After we figure these things out, you're most likely going to have to get in touch with the Dept of Ed's Ombudsmen. Maybe you could tell them that you were mislead into consolidating instead of rehabbing.

 

Erich said, "My CA helped me consolidate".

<sarcasm>They sure "helped" you.</sarcasm> I just got done looking at the Acknowledgement statements from SouthWest. They say right on the web-page that they will consolidate defaulted student loans (that are with the US Dept of Ed) and collection costs will be included. So, it looks like you're stuck with the add-ons...

I thought (mistakenly) that you had consolidated through the Dept. of Ed, however, you have consolidated through this SouthWest Company. Since these are no longer with the Dept of Ed, I think you're only chance at getting the guarantor's trade-lines off your report is through the old fashioned method: disputes, goodwill (maybe), nutcase, etc.

At least they're not being listed by the servicing corp, right?

 

I defaulted from the combined one and recently went through consolidation and got my account out of default.

The process is called "loan rehabilitation."

http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html

Is that what you thought you were doing?

 

The CA isn't <i>really</i> being untruthful. The old trade-lines should reflect "paid in full" (or more accurately, transfered or sold) however, that doesn't mean they can't also have a collection notation! (unless the CA specifically told you that *all* derogs would be removed) So, the CA sold you on a half-truth. (what I'm trying to explain here is that just because a Loan has been "paid in full" does not mean that all of the baddies associated with it will dissappear, if this was the case, i would have paid off my charge-off ages ago!)

You need to get everything in writing, and from here on out, don't beleive it until its in writing.

Heres the link for the Dept of Ed Ombudsman:

http://www.sfahelp.ed.gov/

I really don't know if they can help you now though, the loans are no longer with them. Give it a shot and see what happens.

 

Here's some more info on consolidating defaulted SLs from the dept. of ed:

"If a borrower consolidates a defaulted loan without rehabilitating it , the credit record continues to show a default status on the loan. This is true even after the consolidation loan pays off the defaulted loan in full.
Consolidating a defaulted loan will result in a credit report bearing the notation that a defaulted loan was "paid in full." This notation will remain on the credit report for up to seven years. While a "paid in full" notation is preferable to an unpaid default, there is no guarantee that lenders will not deny future credit, such as mortgages, auto loan, or credit cards because of this notation."

 

Re: Dept of Education

Have you tried to consolidate the loans through the William Ford loan program?

My student loans were seriously late. (I only had Perkins and Stafford loans). The Dept of Education paid every single one off and now shows as one loan on all of my CR. My university and the college foundation which provided me my original loans did have them reported negatively on my CRs, but I was able to dispute all of those and rather than letting the accounts fall off both my University and the College Foundation deleted all the negative payment histories.

Have you tried this route? Here is a link to the Ford program for consolidation. What is the most ironic out of all of this is that it was a Collection Agency that told me what to do! They had not really harassed me but they had been a pains in my side, but it was one of the "counselors" there that told me what I needed to do was completely go the route of the Dept of Education and get them consolidated. The CA never even reported any of this info to the CRAs. Here is the link---

http://www.dl.ed.gov/

 

Re: Ooops use this link

http://www.loanconsolidation.ed.gov/

 

Re: Dept of Education

I can tell you from my own experience that the Ombudsman may not do anything useful. Mine told me "that's just the way it is when you default."

The really bad part is that I would have done the rehabilitation if I had known about it. The CA definately did NOT want me to know about it though, and I didn't really have net access at the time, nor did I know where to look or who to ask.

I just thought I was doing the right thing by getting out of default...

 

Re: Dept of Education

Perhaps you were misled; perhaps you weren't.

Your situation is too complicated to get any kind of real help from an Internet message board where the participants work blind.

However, if you have a paper trail that you want to scan and post, you might get somewhere. Face it: The proof is in the documents (as usual).