student loan question

Discussion in 'Credit Talk' started by uniondiva, Oct 30, 2001.

  1. uniondiva

    uniondiva Well-Known Member

    I hope someone can help. This loan is listed from original lender, who could not verify with me. ( I was not in the computer). Loan has been paid, shows as paid collection but last reported 6/96

    Sold to CA, who verified loan,(9/01) also shows as paid collection, with statement, guaranteed by wage garnishment, which is not true ( at least not now)

    Dept of Edu says they only have one loan on file and that is the one I am paying.

    Where do I start?
  2. roni

    roni Well-Known Member

    First question... Was this a federally guaranteed student loan? I'm guessing it was...

    Second question... Did you enter into a rehab program for the loan? If so, after 12 ontime payments, the collection agency and the original creditor must remove all negative information from your credit report per the HIGHER EDUCATION ACT. If you've made 12 ontime payments, regardless of how they were guaranteed, contact the creditor and collection agency directly. Tell them they must not delete the negative information. At the same time, I would send a letter to the CRAs requesting an investigation on the basis that the loan must be deleted per the HEA.

    Hope this helps... Good luck!
  3. uniondiva

    uniondiva Well-Known Member

    not sure about rehabbed, consolidated. but when i call no record. Can I say that i think they were rehabbed and get them to remove? (not lying, just not sure!)

    also, thanks for the reply. It is kinda fustrating when you are new and don't get a response. BTW, I do search the threads before posting questions.
  4. roni

    roni Well-Known Member

    NO problem Diva... Just please share you knowledge with others in the future..

    Consolidation is a little different... Each year you were a student, there was a loan. Consolidation is when you colapse all of those loans into one account number. What the creditors will tell you is that a consolidate loan can not be rehabbed. That is not true. NO where in the HEA does it say that a consolidated loan can not be rehabbed. It simply says that they must delete any negative information for any loan that has been rehabbed.

    When you nego for settlement, don't you remember making a binding oral contract with the collection agency? They told you after three on time payments you would be consolidated and after 12 you would be rehabbed, right? You remember that don't you? :)

    What you need to do now is enforce it. Call the collection agency and/or the original creditor. Tell them you wanted it deleted. YOu made an oral agreement. DOn't let them tell you it can not be done now that it's consolidated.... Make them show you where the law says that... It's company policy...

    Good luck! :)

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