I have a student loan which defaulted. I contacted the CA for the Dept. of Ed. today to discuss resuming payments. They offered to let me pay a down payment of $200, and then monthly payments of about $35 a month afterward. After one year, the loan would be "rahabilitated", and all mention of the default status would be taken off my CR, and the tradeline would be reported as current and positive. I was told I would also get this agreement in writing. I plan on sending a letter with the first payment reiterating what the CA told me, and specify that by cashing or depositing the money order they are bound to this agreement. As much as I dislike dealing with CA's, this one was actually pretty decent, easy to deal with, and seemed willing to work with me on a reasonable and realistic repayment schedule. I know CA's aren't our friends (heheheh), but this seems like a pretty good deal to me. I've been getting a lot of nasty letters from the Dept. of Ed, and since these are government-guaranteed loans, I know there aren't too many options to making them go away. "Rehabbing" the loan also seems like a way of turning a negative into a positive on my CR. Has anyone else done this? What were the results?
I had a student loan that defaulted, and I had to fight tooth and nail with the collector. They pulled the whole "we're ready to proceed with our lawsuit in 48 hours unless you pay" routine right away, which was of course completely bogus. I say if they put it in writing you should jump all over it.
I am in month 8 of loan rehab. All others I have talked to said that you have to make sure to call after payment 10 to have the tradelines removed. From what I have heard, this program is a huge success. How bout that? A CA that actually volunteers to remove negative info. I was actually just trying to get my damn tax returns back, but I'll gladly let them clean up my reports.
CA's for student loans are a lot more 'user friendly' than those for other types of credit. My CA helped me get out of default. I was overwhelmed and lost. They filled out the paperwork & everything. Hey they automatically get 18% added on to the loan after you default so the quicker they direct you to default resolution, the quicker they get paid without having to deal with you. I unwisely chose to consolidate without rehabilitation. Funny thing is, I was still able to have some of the duplicae entries removed, scores jumped 30 points overall & I haven't even gotten all of the entries for the CA & guarantor removed. Just finished another batch of disputes. I hope to get another boost.
I just finished rehab and they are in the process of removing all negative information from my credit report. As far as I know, it's working great. I'm no longer listed as "in default" and since I was in rehab, I actually got my tax refund this year- which was well over a thousand dollars- thanks to the interest I was paying on my student loan. It worked really well for me. Let's just hope they don't drag their rear ends getting my credit report cleared up. I actually went and disputed my student loan status on my TransUnion CR- just to see if it would clear up faster. Probably a stupid move, but, we'll see.
