rehab or consol

[bfre2bme]

I have a question...has any one ever rehabed their defaulted sch ln? I am just about to consolidate and find out they want 500 a month, after I was quoted about 350. I believe that I can rehab my loan for 4 something and that would mean that it would come off my cre rept in a year of on time payments. If I consolidate it will show paid but be there for seven years. Has any one had any experience with this? Sure would appreciate the input. :?

[phuckenet]

befre2bme,
Go through Rehab rather than Consolidation, Once you complete 12 months of on time payments you defaut status is removed from your credt report and your loan is repurchaced by a lender (in the case of GSL's). You only get 1 chance to rehab and you can set up reasonable payments (much less than 500 a month).

[nomocash]

I, too, am in the same situation. Owe 20K on SLs. 1K and 120+ days late. They offered consol. 240 payments of $150 (4.22%). Sounds great!

What am I missing here?

[bfre2bme]

What you need to know is that if you consolidate your file will show the default for seven years. It will show it paid but it will still be there. I have opted to rehab my loan which means I have to make one year of on time payments and it comes off my credit report all together. An added bonus is that the payments are a little less than they offered at the consolidation place. Personal preference.

[kman1011]

wow that really sucks for me before I found this board I did not know all the option and was never informed, so I consolidated so now I suppose the onlty way to get the negative tl's off is by disputing.

[sarahtel]

i am in month 8 of my rehab for two small loans. however, these two loans are reported a number of times by other collectors previous to the one i'm working with now.

once i have completed the 12 consecutive payments and my loan is no longer in default, the other CAs can be removed as well, right?

also, because i'm not familiar with rehabbing loans, what do i do when the 12 months is up and i am left with a small remaining balance? will this then show up as a current line of credit that i am paying and be counted as a positive on my CR?

thanks for your help.

[matt2402]

When my rehab was finished, the tradeline from the guarantor was changed to "paid as agreed", which was great. The original creditor, Sallie Mae was a little tougher to get off...but it did eventually come off.

After rehab, the guarantor sold my loan to a new company, Sun Trust. This is a brand new tradeline and I've kept it current since. So, this has helped my situation...a lot. I can't say enough how happy I am with the rehab process. Let me know if you have any other questions.