Hi. I'm new here, and was just poking through your site looking for advice on how to fix some student loan errors on my husband's report. We have nothing else bad on our reports,really,but our (his...but "our" ) credit history pretty much began with these loans, and it's remained rather thin as a result,hehe Anyway, here's a break-down of the situation: The original loans were through Citibank, defaulted, charged-off, and sent to the guarantor, USA Funds (Sallie Mae) for the insured portion. Amount charged off-$4000 and $2625. Date reported- 04/00 Date opened 12/97 DoLA- 02/99 With that one is also a small, unsecured loan in the amount of $300, only dates given were: Date Reported-09/98 Date Opened- 11/97 No DoLA Then came the USA Funds.These same 2 loans are reporting multiple times, with multiple dates. Same acct. numbers, same balances, etc. Amounts are $1462 and $2350 First set of dates Date Opened-04/00 Date Reported-11/01 No DoLA (This reads as coll/charge-off, altho they were brought out of default and consolidated by 11/01) Same accounts, but this time the dates are: Date reported- 03/02 DoLA- 04/99 (huh? they weren't opened with USA Funds until the next year, according to the firet listing...) I made 3 consecutive payments directly to USA Funds in Sept-Nov. of 2001, and then cosolidated through US Dept. of Education's William D.Ford's program (I am kicking myself for not knowing about rehab back then). That acct. had a high balance of $4410, and is current, down to a teeny-tiny balance, etc. I know student loans are a bum deal to handle, but I'm tired of having 11 seperate loans reporting, half of them duplicates, and all but 2(the so-called amended "new" entries) reporting as coll/charge-offs. The Citibank ones...I can handle those being charged-off. One, they aren't govt.backed, and preventing us from getting an fha loan The other reason being that they have no obligation to update the status; they were paid, but not by us, and thus charged-off. The USA Funds,however, were paid (albiet late) before they went to collections, directly to them, and then consolidated. The 2 "recently added" accounts (03/02 updates...they reported out seperately, not affecting the original account) report out as closed/zero balance, but with the lates (no dates, just the notations that they were 120+ late) still reporting. I have letters of satisfaction regarding these accounts,btw,dated 11/01. I know this sounds convoluted, and if I explained it badly,I apologize in advance and will try to re-explain if asked Please help...I'm entirely stumped on where to start, who to deal with, and what to claim is the reason for the dispute.
I'm not sure if this applies to your situation Section 674.39 Loan Rehabilitation of the HEA REHABILITATION OF LOANS (A) IN GENERAL- If the borrower of a loan made under this part who has defaulted on the loan makes 12 on time, consecutive, monthly payments of amounts owed on the loan, as determined by the institution, or by the Secretary in the case of a loan held by the Secretary, the loan shall be considered rehabilitated, and the institution that made that loan (or the Secretary, in the case of a loan held by the Secretary) shall request that any credit bureau organization or credit reporting agency to which the default was reported remove the default from the borrower's credit history. (B) COMPARABLE CONDITIONS- As long as the borrower continues to make scheduled repayments on a loan rehabilitated under this paragraph, the rehabilitated loan shall be subject to the same terms and conditions, and qualify for the same benefits and privileges, as other loans made under this part. (C) ADDITIONAL ASSISTANCE- The borrower of a rehabilitated loan shall not be precluded by section 484 from receiving additional grant, loan, or work assistance under this title (for which the borrower is otherwise eligible) on the basis of defaulting on the loan prior to such rehabilitation. (D) LIMITATIONS- A borrower only once may obtain the benefit of this paragraph with respect to rehabilitating a loan under this part. RESTORATION OF ELIGIBILITY- If the borrower of a loan made under this part who has defaulted on that loan makes 6 on time, consecutive, monthly payments of amounts owed on such loan, the borrower's eligibility for grant, loan, or work assistance under this title shall be restored to the extent that the borrower is otherwise eligible. A borrower only once may obtain the benefit of this paragraph with respect to restored eligibility.
Well,I'm actually not sure. It seems to be a pretty grey area in regards to whether or not I can go in now and try to have the loans rehab'd, after consolidating them 2 years ago. Who would I even go to with that...the US Dept.of Ed. (has the loans now), USA Funds (Sallie Mae), or the original loan holder, Citibank? I think my *biggest* problem right now, is with the sheer numbers of loans being reported (a total of EIGHT), and the incorrect status being reported. I was hoping I could just bag 'em on a technicality and get them deleted, or at least have the negatives removed. I am showing a total of *12* installment loans: 3 for cars (those are good, if still reporting open with a balance on 2 of them....even tho the car was sold a year ago ), one for my current student loan, and the remaning eight are the original student loans. 2 were Citibank charge-offs (they say they have no record of the accounts), 2 were USA Funds (they claim they updated the acct. status years ago) and 2 more are the same exact USA Funds accts., with shiny new dates reporting as both coll/charge-off AND paid/zero. My other question would be....since I paid them directly, brought it out of default, and then consolidated it, how was it a coll/charge-off in the first place? It never went to a 3rd party CA...
Update, it just got weirder.... I got curious as to why the original loan amounts and guaranteed (and thus, consolidated)amounts didn't match up. I always thought it was just because only a portion of the loan was sent to USA Funds. I dug up the full history at http://www.nslds.ed.gov/. After i saw that a portion (oddly enough, the *exact* dollar amount that had not been consolidated) was, in fact, cancelled/forgiven in March '98, I gathered up all the old copies of the Citibank disbursals, school records, etc. Citibank claims $4000 and $2635 in charge-offs, when, according to all records, $2000 and $1313 of that was refunded by the school, as my husband had formally withdrawn in January '98. So, Citibank sent it as payment in March '98, when my husband was no longer even a student! What do I do now? Give up and call a lawyer?
