Discussion in 'Credit Talk' started by CCMax, Jan 17, 2001.

  1. CCMax

    CCMax Guest

    I know this has been brought up before, but I was not paying that much attention. I have delinquent student loans showing up on my CRs. I rehabilitated the loans almost two years ago and they are now being serviced through another lender. But the old stuff is showing up as paid collections with $0 balances.

    Am I seeing things or did I read somewhere that I can have the paid collections deleted? Like, there is some provision in the law for this situation? I would love to get rid of those eyesores. Help.

  2. Cadillac408

    Cadillac408 Well-Known Member

    I'm in the same boat also. Have 3 student loans listed as paid collections w/ zero balances also. I would like to know this info also...
  3. roni

    roni Well-Known Member

    I have to ask you a question. Did you truly rehabilitate your loans? This requires a letter from the lender stating that they will remove the negative information once rehabilitation is complete. Rehabilitation requires 12 monthly ontime payments of an amount that the lender agrees to.

    I ask you this because a few people confuse rehabilitation and consolidation. With consolidation you are left with 0 balances and I5's or I9's or paid collection as the status. These requires 3 monthly ontime payments.

    If you did rehabilitate, you need to dispute the item as being rehabiliated. If you are not sure and then that you didnot get proper paywork done at the time of rehabiliation I suggest you read the info at the following website( That goes for you too MP$40).

    it has alot of info that I am sure that will help you.

    If you feel that your loans were not handles properly and you want some help or intervention, visit the site below and give them a call or start an online complaint.


  4. molly

    molly Well-Known Member

    I rehabilitated my student loan and have several letters from Ed Fund/California Student Aid stating this but it takes at least two disputes for them to remove the items (please note-I am speaking from my experience only). Ed Fund/CSAC could care less about them removing the negative marks(I played phone tag with the lady who received my letter for 2 weeks before I gave up and started disputing with the CRA). Don't give up you can get the loans removed. I have found that its easier to get them deleted rather than trying to make them positve. Keep copies of all the letters they send you and ask for something in writing (they are slow and may not do it automatically). Send the copies of the letters with your disputes and highlight the areas where it says -all negative marks will be removed-it may take several weeks for them to do this blah blah blah. Good luck.
  5. molly

    molly Well-Known Member

    I really didn't answer you que

    Mine were listed as paid collections and one was listed as a charge off. Rehabilitation doesn't remove negative info for all the lenders that had the loan, only for the one it was rehabilited with. In my case it was Ed Fund/CSAC. But yes you can get these loans removed.
  6. CCMax

    CCMax Guest

    Out of luck

    I guess what I did was consolidate. Anyway, as soon as I did that I went right back into deferment because of grad school. Oh well. I will still check out those sites and see if there are any options for me. Thanks!

  7. marci

    marci Well-Known Member

    RE: I really didn't answer you

    Actually, although the rehabiliation section of the HEA isn't sufficiently clear about removing info by other holders for the same loan disbursement, the "meaning" of rehabilitation applies to ALL entries by anybody for that loan.

    I had this problem last month, with two old holders of my rehabilitated loans. I was very blessed to work with a great rep from the ombudsman office who got the old holders to delete the info. And he said that the Director of Stafford rehabilitations at the DOE agreed that the rehab theooretically applied to every entry for that loan.

    If you're in that situation, you just have to fight for deletion.

  8. molly

    molly Well-Known Member

    RE: I really didn't answer you

    Thanks Marci, my remaining negative items are all the same stuent loan that was rehabilitated. I will try that.

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