Would paying more on a rehab student loan hurt me?

Mar 132011
 

Hello all, would paying more on my rehabilitation  student loans hurt me more than a help to me?  The amount of money they requested that I pay each month on a certain day I can actually pay more sometimes. I would love to pay more but I don’t want this to come back and bite me on my rear end later. I was told that after I pay the ninth month payment that they reevaluate me and I may have to pay more than what I am paying now, and I don,t want them to think just because I paid $200 this month that I can do it every month. If someone can please give me some advice I will greatly appreciate it. :smileysad: I found this site this month, and I don’t know what I will do without it now.

Student Loan in default

Feb 152011
 

I have a student loan that is in default. The original loan was with Sallie Mae default loan is now with the Florida Department of Education.  I am currently in the rehabilitation program, I completed the required payments and filled out all the paper work.

 

The problem is I am now waiting for a lender to buy the loan.  I would like to know if anyone has any insight or experience on how long it would take to get the loan sold.

 

Thank you for any information.

My process on Rehabilitation with my defaulted school loans

Jan 292011
 

I’m brand spanking new to this forum and I have to say, its freaking amazing. It’s comforting to know that I’m not alone on the issue of trying to fix/rebuild my credit. Well, here’s my 2cents on the Rehabilitation Program for defaulted school loans. Any advise, tips or comments to help me on my situation is more then welcomed as well.


Back in June of 2008 I went into default with USA Funds, Inc. who was my creditor for my school loan. I entered to do a Rehab program with General Revenue Corporation (GRC) and completed it with no problem. 2 months later, my defaults with USA Funds were deleted off my credit record BUT my prior negative reports with Sallie Mae, before USA Funds took over, were still showing delinquencies. So I contacted Sallie Mae, their response was, “WE CANNOT DELETE ANY NEGATIVE/DELINQUENCIES PRIOR TO YOUR DEFAULT DUE TO SALLIE MAE’S POLICY BUT YOUR DEFAULT STATUS WERE DELETED.” Which then got me REALLY confused and feeling cheated because before I agreed to do the Rehab, I was told by GRC, that my default AND my negative/delinquencies prior to default were GOING to be deleted and brought up to a clean, paid on time records.


So I called Sallie Mae and requested a letter that states my completion of the Rehab Program and as soon as the letter arrived the letter stated this:


Dear **********,


Sallie Mae, Inc. is a servicer of student loans for national and state guarantee agencies.  We are pleased to inform you that you have successfully completed your rehabilitation program as of 06/24/2010. Your education loan(s) listed below was purchased by the lender and is no longer in default.


The guarantor, United Student Aid Funds, Inc., will notify the national credit bureaus to delete the defaulted status. As a result of your rehabilitation, the lender/servicer that maintained the loan(s) prior to this default will be notified. It will be their responsibility to correct any adverse credit reporting that they may have made.

 

The letter quotes, “The guarantor, United Student Aid Funds, Inc., will notify the national credit bureaus to delete the defaulted status.” which USA FUNDS, Inc, held their side of the bargain and deleted them asap! BUT this portion of the letter, quotes, “As a result of your rehabilitation, the lender/servicer that maintained the loan(s) prior to this default will be notified. It will be their responsibility to correct any adverse credit reporting that they may have made.” Now, is it not Sallie Mae’s responsibility to fix my past adverse (negative/delinquencies) reporting as the letter from USA Funds, Inc., Quotes? Sallie Mae were my original school loan creditor before transferring over to USA Funds, Inc. 

 

So I did some research and found this:

 

“Because the statute specifically refers to a stream of 12 payments as determined by the institution, the institution must work with the borrower to determine a payment amount that is appropriate. The statute does not require a signed rehabilitation agreement. In accordance with the 1998 Amendments, once the loan is rehabilitated (after the 12th payment has been made), the institution or its servicer must request that any credit bureau to which the defaulted loan was reported remove the default from the borrower’s credit history.  The borrower is brought current and is no longer considered to be delinquent or in default. Removing the default is consistent with the requirements of the Fair Credit Reporting Act (FCRA), which requires that an institution correct and update the information it furnishes to a credit reporting agency.”

 

- The Higher Education Act

 Section 674.39 Loan Rehabilitation

 

For full article of the law that states this claim, Google the above source, as I lost the link to the site. Sorry :(


So, in your guys opinion, does it seem like Sallie Mae is obligated to make the changes to my credit report? and I have the upper hand? If so, how should I approach this to where they can’t argue back and fix the issues.


I hope what I provided is of some help to others in a similar situation and if I find out anything else, ill be sure to post it up here for everyone.


Any advise, legal advise, tips or comments will be greatly appreciated. Thanks :)

Success with Sallie Mae!

Sep 292010
 

I have a boatload of student loans that went into default a few years back.  Part of my credit rebuilding process has been to rehabilitate the student loans and get all of those negatives removed. Unfortunately, although I completed the process for my 12 Sallie Mae loans in November 2009, 9 of my loans through them have continued to show tons of 120 day lates,”Charged off” and “Loan being paid thorugh insurance” rather than a zero balance and “paid as agreed.” This was for each of  9 loans, so you can imagine how this is killing my score.

 

I asked the guarantor (Pioneer Credit, who I rehabilitated the loans with) in February or March of this year when the loan records would be cleared and was told to contact Sallie Mae directly as Pioneer Credit no longer had the loan (it was purchased by Direct Loans after the rehabilitation process — still in good standing, btw).  I don’t know if anyone has tried calling Sallie Mae these days but all the 800 numbers go to India now.  I met a brick wall there and was basically told that, regardless of what Pioneer Credit promised me, Sallie Mae could not remove the negatives and they would come off in 7 years.

 

I then decided to dispute it with the CRAs and after a month or so my Sallie Mae listings changed — for the worse. Some of the loans that had been listed as “pays as agreed” now showed the 120 day lates and charge offs. My scores dropped 20 or 30 points across the board.  I tried calling again back in July or August and again got India. I was told “we can’t change it and the negatives will come off in 7 years” again. I asked to speak with someone in the US. I finally got someone at Sallie Mae who said they would investigate and there were some recent updates to my Sallie Mae listings but just things like “date of last activity” changes. Nothing that pulled them out of negative status.

 

After reading this board, I decided to try a different approach and a couple of weeks ago I emailed the President of Pioneer Credit at Sallie Mae. I told her my story and told her I had been assured the negatives would be purged after I completed the rehabilitation process. I explained how much these negatives were hurting my credit and that I had tried working through channels for nearly a year to no avail.

 

Two days after I sent my email I received a response from someone at Sallie Mae letting me know that the President had forwarded my note and assuring me that they were investigating the issue. Today I received a call from someone on her team letting me know that all of my accounts are being marked “Zero balance” and “pays as agreed” and should be updated on the CRAs by the end of the week.

 

My first success in the rebuilding process!! I just had to share! :)

Need some sound advice.

Feb 182010
 

I am new to the forums and have found a wealth of information here.  But have some questions that weren’t clearly answered.

 

1) Does paying off collection accounts actually do anything for my credit score?

 

2) Does paying of a charge-off do anything as well?

 

I have set up my student loans in the rehabilitation program and also have two other collection accounts set up on payments.  I do have some extra money to spend but just wanting to know would I be ahead to focus on getting the two collection accounts paid off then focus on a few more or spread it out a bit and try to tackle several at once.  This is where I would like to know how this affects my score if at all.

 

I had talked to a loan officer who mentioned that as you pay those balances down they do help your credit score a little and when they are paid off they help the score a little bit more, but from what I have read that doesn’t really seem to be the case. 

 

I am not against paying what I owe, I just need to know where to prioritize excesses in my budget that will put it to the best use.

 

 

Stabbed by home intruder, Bainbridge grad gains strength during rehabilitation

Jan 232010
 

Stabbed by home intruder, Bainbridge grad gains strength during rehabilitation
A young man in a hooded sweatshirt, holding two kitchen knives, one of which Cook said was a wedding gift, leapt out of the bathroom, twice stabbing her in the process. First, the would-be burglar slashed her shoulder and ring finger with a bread knife. Then he cut the back of her left knee, piercing the femoral artery in the process. “It was straight out of a horror movie,” she said.

Read more on Bainbridge Island Review

Page: /tag/rehabilitation/ :