student loan in rehab

Under the Higher Education Act, only the guarantor is removed from your credit report after completing a rehab....the defaulting lender remains.

Thank you for your response. Does it stay on for 7 or 10 yrs?

It remains for 7 years from the paid claim date or the default date.

Thank you Soaplady, does it have a bigger impact on credit score than say a credit card charge off? Or is it really just the same as any other bad account?

I am finally in rehab for my student loan via NCO. I owe $100,000 and got my monthly payment to be $500.00. I used the student loan ombudsman to help me.

I rehabbed my student loan a few years ago. My credit report says 'Claim filed' and 'Transferred to another lender' but with a $0 balance.

Hi all, I have multiple loans (SallieMae, federal subsidize and unsubsidize, ...) on default. My credit score had a down fall and now I am ready to finally get out of this situation. The total amount is $110000, however the amount I originally borrowed does not exceed $80000, the rest are collection fee and interst rates. I now have to make a decision to consolidate or go under rehab program, looking at people experience, the rehab does not look like it can repair your credit score and consolidation does not either, can anyone help between the two choices? Are there professionals who can help me?

What you borrowed has little relevance to what you owe now. You unsub loans have been accruing interest since the day you borrowed them. The sub loans started 6 months after you ceased being a full time student. You owe those....nothing you can do about them.

Ok...who is currently holding your loan? When did you default? If you have a FFELP loan (a loan NOT currently held by the DOE) then you have limited benefit in rehab. Yes your guarantors tradeline will change but the Salliemae tradeline will remain. You dont get any break on the collection fees. It will raise your score some but not a lot. The other issue is your balance. Your rehab payment as a standard payment is about $1100 per month. You may be able to get that reduced but it wont be $50 or $100 a month.

Read the stickies on top.....I have explained rehab and consolidation in great detail.