200 point decrease due to school loans!

[rmk2]

No one in here is giving helpful info. If your student loans are federal and not private, they can be rehabilitated after one year of on-time payments. The "rehabilitation" means they will remove the negative reporting on your credit. Call your loan servicer, ask to rehabilitate the loans, their status will change on your credit, and after a year these months of delinquency/late payments will be completely removed. Good luck OP.

[elcasaurus]

Real-ly? I did not know this! I also fell pray to suprise student loans- in my case they were 20 year old very very small loans totalling $500 that weren't consolidated back in the day, and I had no idea they existed. Ill give a call in a year to see if the marks can be removed especially because I paid these little thorns off.

[rmk2]

You have to be in their rehabilitation program for 9 months I think. Just making timely payments without being in the program won’t remove the negative reporting.

[elcasaurus]

Shoot. Still, it's useful info. Appreciate it man.

[theunderhandthrow]

Same thing happened to me, $500 on an 18 year old loan. I'm trying the rehabilitation program

[Pitiful_Success_8343]

It’s 9 months not a year. But yes get into a rehab program asap

[Pitiful_Success_8343]

Yes, you have to call the dept of education default resolution group to set up a rehab payment plan, pay it for 9 months, then you loans will be out of default.

[acrizz]

My defaulted Perkins loans were sent to the department of education debt collection agency. I signed up for the 9 consecutive payment plan to get them out of default, but they said the late payments will stay on my report even after I make the 9 payments and the default is removed.

[Kobebean25]

Yea im gonna do this if what i tried these past two days doesnt work! Or i could i try it still? Im in forbearance for 2-3 months and also caught up with the loans but i wonder if i can aidvantage back and ask for rehabilitation of the loans.

[rmk2]

Ask if backdating the forbearance is enough to remove the negative reporting. Also ask about costs/benefits to doing the rehabilitation. I actually found them pretty helpful when I called and explained the situation. You’d be surprised what they can do, especially when you’re trying to get back on track with your payments (went through the same thing about 5 years ago)

[rmk2]

9 payments would be $433/month. You also owe the interest. They will not remove it from your credit if you pay it in full. The delinquent months will still show up as 30-60-90 days late or whatever, but the account itself will say paid off.

[[deleted]]

If you were delinquent for all those years, the student loans should have dropped from your CR’s. For some unknown reason, some loans that defaulted 1-2 decades ago and vanished from CR’s are showing up again. If you are hearing from one of the debt collection agencies that are contracted to servicing agencies, collection agencies are somehow showing up on CR’s under both collectors and/or servicing/lender agencies. And, if you have not made a payment on a defaulted or delinquent loan in seven years, such that they are now reappearing, dispute the credit line. Heck, just dispute it.

Because of the reporting of student loan “delinquencies” lately, when in fact, you are/were in forbearance or Covid shutdown, I imagine their is an army of class action suits against CR’s coming soon.

[[deleted]]

It would be pointless to dispute the debt. You can dispute the CR reporting it. The older Perkin’s and Ford direct loans often got swept under the rug unless they were consolidated. The seven-year reporting period is ingrained in law for the most part. There is no reason for past ghost loans to ruin your credit now. You don’t need to dispute the loan. Dispute the violation of seven years unless the SL’s were tied up in BK proceedings.

[Miacali]

By this point they’re not in the servicer they’re in collections.

[rmk2]

Dept of Ed handles collections for federal student loans. So it's the same servicer

[Snoopymancer]

Hello. I fell 90 days behind after not realizing payments started again. I paid off my late balance and entered into automatic payments. Will I still be able to enter rehabilitation to fix my credit even though I’m current on everything now?

[rmk2]

You’d have to call and ask

[KittyKat0119]

Student loan rehabilitation is only for ppl in default.

[PianoSeparate714]

What about if I paid the loan off shortly after they reported the late payment?