Student Loans

Discussion in 'Credit Talk' started by benkind, Aug 13, 2001.

  1. benkind

    benkind Well-Known Member


    I have the same problem, except my consolidated loans show up as charge offs with the Dep of Education as the creditor on all 3 reports--but those same loans consolidated are 18 months never late.

    I disputed as not mine and they came back on TU as "updated info" with no change.

    I know I was late before but what can I do?
  2. roni

    roni Well-Known Member

    Contact Dep of Education and tell them the loans were rehabbed under the rules of the HIGHER EDUCATION ACT. Because you have 12 on-time monthly payments they must delete any negative info. When you dispute with TU make sure to tell them HEA is the reason for the deletions.

    I just called this morning for an update... All of mine are now deleted from all three credit reports! YEAH!!!!
  3. Andrew

    Andrew Well-Known Member

    I'm in the same boat and your advice sounds almost too good to be true. I consoliated through The Dept. of Ed., but my loans that were previously held by Mellon Bank and then PHEAA will continue to reflect my defaulted status. Right?
  4. EdG

    EdG Well-Known Member

    I'm is the same boat as well.

    I think you have to make the 12 on time payments with your original loan guarantor before you consolidate through the Dept of Ed.

    It would be great if you could make the on time payments with the Dept. of Ed. after you consolidated.

    I had 8 loans, the guarantee agency wanted close to 1K per month for the rehab. Pretty impossible. Now with Dept. of Ed. I pay $400. Life is simpler except my credit report still stinks until 8/2003.
  5. Andrew

    Andrew Well-Known Member

    Looks like I'm stuck til january 2004...yuck!
  6. roni

    roni Well-Known Member

    Your student loans can be consolidated at ANY time. They don't tell you that! They also claim that if you've consolidated your loans, you can not rehab them, but that is a company policy not a legal one. In the HIGHER EDUCATION ACT it does not say you can not consolidate and rehab, it just says 12 on time payments shall be considered rehabbed.

    Check out this link for more info........
  7. EdG

    EdG Well-Known Member

    So after you "rehab" the loan do they remove the 30, 60, 90 day late notations as well as the collection account notation?

  8. marci

    marci Well-Known Member

    They delete the entire tradeline.
  9. Terry

    Terry Well-Known Member

    They don't delete the entire tradelien, they amend it so it looks like you were NEVER late.
  10. roni

    roni Well-Known Member

    If they respond and the CRA processes the update correctly, it looks like it was never late.... BIG IFS.... 5/6 of mine deleted.
  11. akg

    akg Well-Known Member

    My husband has some 60 and 90 day late notations on student loans from 1995 prior to them being deferred for six months. After they came out of deferment, we have never missed a payment on any of these (6) student loans...but the lates still show on his CR. Could we claim HEA rehab to the CRAs and have them remove the lates? He never formally entered a rehab process...just deferred the loans until he started making decent money and began paying.
  12. kbelle72

    kbelle72 Well-Known Member

    I'm curious...did you contact the creditor and ask to have them removed (the lates on your husband's account). I'm in a similar situation and I have sent a letter and am waiting for a response.
  13. akg

    akg Well-Known Member

    No, I haven't contacted the creditor(s) directly: Sallie Mae, Georgia Student Finance Authority and AFSA Data Corporation. I have disputed the trade lines as "never late" with all three CRAs. I did this on July I should know the outcome soon. I'll post the results once I hear back.
  14. marci

    marci Well-Known Member

    They deleted all of my tradelines completely. It may differ from guarantor to guarantor.

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