AboveAverage

Default is gone!!!!! YEAH!!!!!

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Well, contrary what the "experts thought", my student loan default is HISTORY from all THREE CREDIT BUREAUS! Process is a pain in the a$$, but that's what happens when you default. I don't blame anyone for that but me. I know I fcked up, and I don't need some ahole to tell me what I painfully already know.

So now, I will share my process from beginning to end,

Started paying about June '07 voluntarily. Made sure it was on time every month. Made 10 payments and on the 11th month (April) the default (NJ HESAA) that was being reported on my credit reports were gone! I immediately went to my FICO and saw my score jump on average 34 points!!! Experian is now my strongest score.

AES (my servicer) will take back the account and I will make more than minimum payments. I have a default fee and all that, I don't care...I will pay and be done with it. A few hundred bucks is what I ultimately owe on the loan.

If you are reading this, and your student loan is not in default, MAKE SURE IT NEVER GETS THERE! If you are in default, try to get into loan rehabilitation. Student loans don't ever go away and if you want a mortgage, you won't get it. Even if it's VA or FHA because you have to pay the government back first.

If there is anything else you'd like to know, feel free to ask. I promise you won't be made to feel stupid. But the only thing I am waiting on, is the release of my offset which should be about a few weeks. But I am happy as well. :) I should see 700 across the board in no time.

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Congratulations - I am in default now and just filled out for a consolidation loan, though I am not sure what will happen with all the other student loan reporting on my credit once that happens - regardless, congratulations!

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Congrats!! Thats awesome! I am hoping for the same results in about 4-5 months. I have made 6 payments so far. I actually called the rep who is handling my account and he said I just need to continue making my payments on time. He said the paperwork that is needed is all completed so it may take 4-6 weeks after my 9th payment to get everything squared up.

Thanks for being positive Above!! It is a breath of fresh air. I don't know why some of the others are so bitter on here.

Its funny you pay so much for your education and you have to go through so many crap jobs until you get a good one!! Finally 4 years out of college I actually have money that I have saved and can take care of these past mistakes!!

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Congrats!! Thats awesome! I am hoping for the same results in about 4-5 months. I have made 6 payments so far. I actually called the rep who is handling my account and he said I just need to continue making my payments on time. He said the paperwork that is needed is all completed so it may take 4-6 weeks after my 9th payment to get everything squared up.

Thanks for being positive Above!! It is a breath of fresh air. I don't know why some of the others are so bitter on here.

Its funny you pay so much for your education and you have to go through so many crap jobs until you get a good one!! Finally 4 years out of college I actually have money that I have saved and can take care of these past mistakes!!

Thank you Spunk and Jillie.

It's not some, it's two people. Just two. In the very beginning I would lurk here and would be pained to see people like myself (ourselves) asking questions on how to get off the situation they got themselves in. I don't have fault with folks "keeping it real", but you don't have to be a wretch about it. Just answer people's inquiries with pertinent information, or STFU. Why should you say something that will add more pain to what I'm/folks already going through?

That's why I remain positive, because I am in this mess too. I don't have to check out this forum anymore, but I do because I don't want people after me to feel like their alone. (You're not...it's a long process and at times it hurts, but once it's over, you will do (or will want to do) cartwheels naked (no I don't plan on doing that anytime soon).

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Got my letter from HESAA regarding my Federal offset...

Basically, it says that it will tell the US Dept. of Education to remove my offset. Once I call the Financial Management Services, Treasury (1-800-304-3107) in about 4 weeks and they say that I have no offset, I can go ahead and file my Income Tax and get my close to $6k!

I can be patient on that though. Tax refunds/rebates I try to do wise things with. With that much money coming to me, I really need to plan that out. But I can file before October to get my rebates and such.

Part 3 of this sad story will be when I hear from AES about when stuff is due, and all that. I'm not going to drag out the student loan...I plan on paying that off by the end of the fall. Unlike the rehab where I was forced to make minimum payments, this one will be done within 4-8 payments. Then I'm done.

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Congrats!

I'm glad they chose to do it even though they didn't have to do it:)

Rehab is the best thing to do if you're in default and want to improve your credit.

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Congrats!

I'm glad they chose to do it even though they didn't have to do it:)

Rehab is the best thing to do if you're in default and want to improve your credit.

Thank you! That truly does mean a lot. :)

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It's Great To See Someone Getting Past This Problem. I Am In Default Too But I'm Consolidating With Department Of Education. My Concern It's That I Have A Student Loan That Went To Collection And I Want To Know If This Collection It's Going To Desist To Report In All Cra When The Consolidation It's Complete. Thanks:)

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Got my letter from HESAA regarding my Federal offset...

Basically, it says that it will tell the US Dept. of Education to remove my offset. Once I call the Financial Management Services, Treasury (1-800-304-3107) in about 4 weeks and they say that I have no offset, I can go ahead and file my Income Tax and get my close to $6k!

I can be patient on that though. Tax refunds/rebates I try to do wise things with. With that much money coming to me, I really need to plan that out. But I can file before October to get my rebates and such.

Part 3 of this sad story will be when I hear from AES about when stuff is due, and all that. I'm not going to drag out the student loan...I plan on paying that off by the end of the fall. Unlike the rehab where I was forced to make minimum payments, this one will be done within 4-8 payments. Then I'm done.

Hi AboveAverage, what's an Offset?

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It's what allows them to seize your tax return (and stimulus check this year) to pay for your defaulted student loan. It takes a bit for that offset to clear once you're out of default, and AA got caught in getting out of default right at tax season and has to wait for the offset to clear officially or who knows what would happen to the money, heh.

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Hi AboveAverage, what's an Offset?

Offset is when you aint getting a tax refund because the Student Loan guarantor put a lien on it. If you're getting $2500 back and you owe $3000, that means the $2500 is going to the guarantor. Then you owe 500 left.

Had I filed, my rehab exercise would have gone down the drain...and I would not be (easily) in the 600 club.

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It's what allows them to seize your tax return (and stimulus check this year) to pay for your defaulted student loan. It takes a bit for that offset to clear once you're out of default, and AA got caught in getting out of default right at tax season and has to wait for the offset to clear officially or who knows what would happen to the money, heh.

Well I called the TOP number that I had posted in this thread........you'll forgive me if I post the following in all caps. :)

AS OF TODAY, NO DEBTS WERE FOUND WITH YOUR SOCIAL SECURITY NUMBER!!!

PARTY TIME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

OH YEAH!!!!!!!!

Guess what AA is going to do as soon as he clicks save.....take a wild guess.....LMAO!

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It's Great To See Someone Getting Past This Problem. I Am In Default Too But I'm Consolidating With Department Of Education. My Concern It's That I Have A Student Loan That Went To Collection And I Want To Know If This Collection It's Going To Desist To Report In All Cra When The Consolidation It's Complete. Thanks:)

The caps are annoying, rude, and stupid.

No, you have to rehab to get your guarantor negs off. Consolidating won't change the fact that you defaulted before the consol.

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The caps are annoying, rude, and stupid.

:roll:

Wow. That was so not helpful. Perhaps he or she isn't a net-iquette pro? A friendly FYI would have been a lot more effective.

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:roll:

Wow. That was so not helpful. Perhaps he or she isn't a net-iquette pro? A friendly FYI would have been a lot more effective.

That's what I'm talking about. All that poster did was capitalize the first word in every letter.

I posted in all caps to denote my happiness for a brief second. But the G(M)ods just seem to let this crap fly. It's sickening and sad that this forum can't be like every other part of the forum where you dont see this crap. Even disagreements on the other forums are civil and as long as no one mentions who they're voting for, it's pretty much ok. LOL

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I find some of the comments here disturbing. Believe it or not, there are many people in the world who are learning how to use a computer for the first time in their life and with as technology driven our world is, that can be very overwhelming. I was thinking that if we are so quick to flame someone for such a grave breach of forum-law (I mean all caps? Isn't that punishable by brutal stoning or something? :roll:), how open would our community be to "new-bies" ... this is the sort of resource that I could see many individuals learning how to use a computer and how to navigate the Internet specifically to learn from our experiences in an effort to better their lives. I wish we would be a little more welcoming to those who may be disenfranchised not only in the world of credit and perhaps other areas of the physical world, but also maybe their level of exposure in the digital world.

In order words, many people are are likely to feel like cr@p about other areas of their life - do we all have to drive the stake in with such harsh and unsympathetic sentiments?

Just my two cents ... stone me

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Literacy didn't start with the computer. One would assume the poster attended some sort of post-secondary institution of higher learning in order to HAVE student loans (scary, isn't it?). They also needed to be a US citizen.

Basic punctuation is covered in grade school.

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OK people, that's enough. Let's try and all play nice.

Back to topic.........

Congrats AA on your victory!!

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Agreed. AA - Great job! I bet that feels awesome! Good for you!

have a few :MoreBeer:xbeer2)xbeer2) you deserve it!

Thank you, and newbie.....

MoreBeer: xbeer2)xbeer2)

I am going to need a keg to myself after the week I've had. But that's another story.

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Congratulations - I am in default now and just filled out for a consolidation loan, though I am not sure what will happen with all the other student loan reporting on my credit once that happens - regardless, congratulations!

Spunk, I just wanted to make sure you understand (because I didn't) that you must REHAB to get the negative reporting deleted. I was under the impression that simply getting back on track with the payments and getting out of default was rehab. However, rehab means making a number of ontime consecutive payments to the CA (as AboveAverage did) on the UNconsolidated loans. For me, because my total balance was so high and there were so many loans, that was impossible. So I consolidated and got a new lender to buy them. That's just called consolidation. Now I'm stuck with the negatives until they die their natural death in a little less than a year.

So, please make sure you ask whomever is holding your loans what your options are with rehab vs. consolidation. If you can financially afford the terms of the rehab, go for it...and you will be partying like AA here MUCH sooner than 7 years from now!! :-)

Sorry you've had negative experiences with people here! Like AA, I don't need to come here much anymore, but my first six months were spent asking questions...people were nice, helpful...and now that I have my own experience with stuff, I like to share it and "pay it forward." Just ignore the very few jerks we have around here. ;)

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Can you do both? Rehab and consolidate? Or is it really just one or the other?

I can't really speak on consolidation because I only had the one loan. I had 2 loans, but the first loan I had was only $900 and I paid that off in 2 shots. The larger loan was the one I messed up on.

I will also add that even though I did rehab, had I just simply paid it off, I would have had the negative TLs, BUT I would have probably still qualified for an FHA mortgage (which is really my true goal in ALL of this is to qualify for a mortgage). Under FHA, you cannot have ANY government debt owed, no matter what the amount.

Don't get me wrong though, I am glad I rehabed, but if rehab is not a viable option only because the payments are too high or there are just too many loans as in Leslie's situation, then just paying it off will be just as good for FHA.

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Yes, once you get done rehabbing, you can consolidate...as far as I know, this option never closes for you. It's just that, as I said, for me, the payments on each individual loan were just prohibitive to me rehabbing. So I found another lender and consolidated, easing that monthly payment considerably....but leaving me with lots of derogratories on my CRs.

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