I requested rehabilitation on a defaulted student loan for the purposes of repairing my credit, and I recently received a rehabilitation agreement from from the collection agent. The letter lists the terms of the agreement (to which I have agreed) and then goes on to say â??It has been explained to me and I understand that upon successful rehabilitation my account will be current but if I default on this account I will not be eligible to rehabilitate a second time. I also understand that interest at the contract rate of 5% will continue to accrue during this agreement.â? Is this the standard wording for rehabilitation agreements? It was my understanding that after I made the proper payments, my account would be returned to the college, and that the default would be removed from my credit report. But the letter I received only uses the word "current." Any idea if the wording of this agreement is going to ensure that the default is removed from my credit report? Thanks.
You're getting conned here by the CA. What The CA has passed off here is a fake rehabilitation as the real thing. If you sign this you're screwed.
