Ombudsman just told me the same thing. Prior servicers don't have to do anything and current servicers are only obligated to remove the default only - nothing else. Had I known this, I would have just consolidated since I already have gotten the I9's off through disputes. This really sucks.
I dont understand the whole thought process behind the student loan rehab thing. I pay my loans , had a rough spot of 5 lates in a row, scrape to not default and can't get those lates removed as of yet. Someone defaults and they make 12 payments and come out smelling like roses. I'm not knocking anyone who has defaulted. Heck If I knew then what I know now, I would have defaulted and rehabed. It just sucks to get punished for trying to get the job done. But then, we go out of our way to see to it that murders in camps in Cuba have clean prayer rugs, ethnicly appropriate meals while they throw their waste at our soldiers. And when Americans get butchered abroad no one makes much of an issue about their human rights. oh, I'm really ranting......
No, we don't come out smelling like roses. And no, it's not just 12 payments. Twelve payments just gets you back on track. The whole thought process behind the rehab program is to give people motivation to get them paid. Many people, unless offered the dangling carrot, would never pay the loans back because they fall into the "my credit is already hosed so why bother" attitude. This carrot prods people to pay back the loans. Whether or not I was able to rehab, I would have paid them back anyway because I want the $300/month pmt out of my hair.
12 payments and your student loan derogs are removed. Of course you have to continue with the payments. Anyway, I just consolidated 4 into one. They said the 4 will be remarked as "paid in full" on the credit reports and a new trade line opened. So I am hoping that this will give me some positive points.
No, they aren't. Isn't that the whole point of this thread? Just the I9 goes away - unless the servicer is feeling merciful.
If you fight hard enough, you can get a clear record but that can be done whether or not you even rehab. Just depends on how hard/long you want to fight.
Yeah this does not referr to any previous tradelines which is the real crux of the whole issue. The old tradelines still screw your credit big time and that's what I am fighting off now. I got a return call from DOE Ombudsman and will call them tomorrow. In the meantime I posted a complaint to PFB and got a call from a representative that I spoke to. He said there was no written proof/law that old tradelines should be deleted. What is the purpose of rehabilitation if your credit is still ruined. My question is whether DOE is going to back up this concept or not and the rep is going to contact DOE yikes! "Spirit" of HEA and SLRA is one thing but if it isn't on paper it makes it more difficult to prove.
I am curently in the process of rehabilitating my wife's loans. I consolidated my defaulted loans without rehabilitating, but through constant disputes, the negatives went away. Persist and Persevere!
