Student Loan Rehabilitation?

Question

I defaulted on my student loans in later 2005. In early 2006, I decided to rehabilitate my student loans.

The detail was as such: After making a fair down payment amount (I paid $7,000), I would be entered into the rehab program. I would then make 9 consecutive payments of a fair amount (I paid $200 a month), the loan would be considered rehabilitated and be eligible for consolidation. Also, ALL negative information reported to the credit bureaus would be expunged from my credit report.
I fulfilled all parts of the rehabilitation program. My loan was purchased back by the guaranty agency and the guarantor removed the default from my credit record. . However, the loan servicing agency that serviced the original loan refuses to remove the deragatory data from my report. I have disputed the information through all 3 credit bureaus to no avail. I have spoken with the Dept of Ed and they have stated that the deragatory information should be removed.
Any advice? I'm really lost!

Answer 1

I'm sorry that this happened to you. You did everything right and acted responsibly by completing the program. You should get credit for that (literally!).

In general, when you dispute a negative item on your credit report, the "burden of proof" is on the creditor to prove that that negative item is legitimate. If they don't do this within a certain number of days, the item is typically removed from your credit report. Have you checked lately?

If the problem still exists, I would recommend contacting the Department of Education Ombudsman: http://ombudsman.ed.gov/ . Their role is to mediate exactly these types of situations. I think it will work in your favor that both your guarantor and the DoE think that you the derogatory items should be removed.

Answer 2

It does not make sense to me that they would have a due date & then allow for 15 days after due date & still call that an on-time payment my guess is that you misunderstood something & paid past the due date with paying 1-15 days past the due-date, then it was not counted "on time" even though it would not have reported to credit bureau as a late payment it may be that the payment is due on the due date, but they will not charge you past-due fees or send you to collections unless you are over 15 days past the due date --- but anything past the actual due date would still be not-on-time it would be easy to see how the lender would see this as not making consistent monthly payments

Answer 3

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