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Potential Rehab Hazard? - Info for Group


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I rehabilitated a student loan about two years ago by consolidating with US Dept. Educ. Direct Loan and paying on time for about 18 months.

After this, EQ had all but one of my GA Student Finance Commission (GSFC) accounts reporting "pays as agreed" (with no negatives on these accounts). On the one account, however, there was still a >120 past due/collection account notation ... so I contacted GSFC by phone and asked if they would report the results of the rehab to EQ (thinking, of course, that they would simply correct the single negative account).

They agreed on the phone, and shortly thereafter, I got a copy of the letter from GSFC that was sent to EQ, EX, TU and IN, stating:

"The above-referenced debtor has completed ... rehabilitation program...

"Loan rehabilitation reverses the default status of the debt and entitles the debtor to removal of the default from the credit file. Please remove all credit reporting by GHEAC reflected on [debtor]'s credit file." [emphasis supplied]

I was stunned by this request, as the two-year "pays as agreed" seemed to be a boon to my FICO, and I was afraid EQ would simply delete everything, as GSFC had requested.

Fortunately, though, EQ kept all of my positives and simply changed the status of my single negative to "pays as agreed".

I have not yet seen results on EX, TU, or IN. (Still have Sallie Mae negatives on EX that I have to deal with ... somehow.)

If the CRAs act on an account exactly as this GCSF letter had requested, might it be possible that postives vanish along with negatives? I post this info simply to warn about the possiblity (not sure how realistic my fears are on this point).

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I have not yet seen results on EX, TU, or IN. (Still have Sallie Mae negatives on EX that I have to deal with ... somehow.)

What I did with Sallie Mae negatives was group the trade lines that were the most similar together. I then made disputes that they were duplicate accounts.

After a few of them were removed, I then grouped what was left and disputed again as duplicate accounts.

Soon I was down to one trade line in which I disputed as not mine and it was deleted.

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  • 2 months later...

Just an update for anyone who might be interested:

RECAP: I had rehabilitated a student loan for over two years now through Ga. Higher Education Assistance Corp. (GHEAC). No problems with EQ or TU, as these items were deleted before I pulled my report for the first time. EX was a bear - they continued to list multiple GHEAC and Student Loan Marketing Assn. (Sallie Mae) TL's with derogatory notations - in spite of a letter from GHEAC requesting removal of the GHEAC items.

WHAT I DID: After initially disputing online with EX (something to the effect "creditor has already written you a letter asking for removal"), they did no more than remove the balances (leaving the lines about "claim filed with government, etc.". (I also took Ravenous Wolf's advice and referred to the Sallie Mae entries as "Duplicate Accounts".) After the tedious 30-day wait, I sent them a document entitled "Notice of Violation of FCRA" with which I enclosed a copy of the initial letter from the creditor (the letter from GHEAC that requested removal). I also wrote a nice, laudatory letter to GHEAC thanking them for their first letter and asking (very, very nicely) for a second letter to EX. In my nice, nice letter, I explained that "while I realize Experian is violating the FCRA and that I have a remedy in the courts, I would like to settle this matter without that, blah, blah, blah".

WHAT HAPPENED TODAY: Lo and behold! Today, all TL's from GHEAC and Sallie Mae are deleted! [pregnant pause, while the applause dies down].

I now have a lovely "always pays on time" TL from the Dept. of Ed., and my EX score shot up from 630's to 679.

MORAL OF THE STORY: 1) Listen to Ravenous Wolf. She always seems to have excellent advice. 2) Student loans CAN be rehabiliated with excellent results. 3) Sallie Mae's can fall off, too; don't ask me exactly how that works. 4) "If at first you don't succeed, threaten litigation." (take this one with a grain of salt).

EXPRESSIONS OF GRATITUDE: "I'd like to thank all the little people who helped to make this possible." And many, many thanks to Ravenous Wolf, who showed me the way.

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