AboveAverage

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

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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.

I consolidated and then rehabbed. All of my bad loans aren't off all of my CRs due to Satan. 2 of them are due to drop off this year though, so whatever.

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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.

To get the benefits of rahab (ie negative credit reporting removed) you would need to rehab first and then consolidate. From the perspective of the guarantor that holds a defaulted loan, consolidation is just paying them off (instead of getting a check for the full amount owed from you, they get it from your new lender).

Rehab means the borrower actually makes the 9 payments to their loan holder. The way the current regulations work, a borrower that makes those payments gets more then a borrower who merely gets rid of the default by taking another loan that taxpayers will cover if they don't.

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I can attest to the consolidation vs rehab difference. I consolidated my defaulted loans, then defaulted on the consolidation loan, then rehabbed. The consolidated loan default is gone from my CR as it was cleared by me rehabbing the loan, but all the individual loans I defaulted on originally (then paid by consolidating) are still there.

It's my punishment for not taking care of these loans originally, and I'll be reminded of my bad decisions for a few more years yet. That's just the way it goes. I'd recommend to anyone with student loans, defaulted or otherwise, to worry about making satisfactory payment first and worry about your credit report second.

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. I'd recommend to anyone with student loans, defaulted or otherwise, to worry about making satisfactory payment first and worry about your credit report second.

That's some damn good advice!

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Congrats AA!!!!

I haven't visited over here in a few weeks (been spending more time on the Obtaining and Credit Repair forums), I'm glad I came by to see you made it to the other side.

I should be seeing one of my rehab loans going to a new servicer soon. The other will be at the end of this year. 34 points is awesome!!! I hope mine is a similar story.

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Sorry if this has been noted before by someone else, but after I rehabbed my loans and the new servicer started reporting, my score shot up. I guess because I got to keep my history, but none of the negative past. So I have a tradeline from 1999 that is reporting PAID AS AGREED!!!

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