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Posted in Student Loans
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dillon89

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student loan scam?
I defaulted on my student loans I recebtly started a program they claim that if I make 9 consecutive payments they will go back anf make it as though I never defaulted . is this even possible. also all my other negative items are paid except one for 100 dollars if the student loans clear up will my credit score go up

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Not a Student Loan Scam

Helpful to 14 out of 14 people

YES, IT IS TRUE!!!!!!!!!! The 9 month consescutive payments is the "Rehabilitation" period. I went through the same thing almost 2 years ago. After the 9 month Rehabilitation period, your student loans will reflect No Missed Payments on your credit report after a few months.   I made sure that I funds for the monthly payment was in my bank account since they do an auto-debit. On the 8th month you will receive notification of who will be your new Loan Servicer and your student loans will automatically be structured for 10 years repayment.  If that is not financially possible for you, think about restructuring your loan (consolidation). There are Pros and Cons of Consolidation, so do your research. I did consolidate my student loans because I owed such large sums & I had 14 student loans. Now I have 2 student loans. When you consolidate your loans the interest will be capitalized on top of the principal owed. I now owe $52,000.00! But, I have managable payments AND since I do an auto-debit , 0.25% interest rate is shaved off and I never have to worry about missing a payment.  I can always send extra monies anytime. The Rebilitation period is a great way to get your finances and credit report back on track. Best advice I can give you--stay on top of your student loans. If you have questions during the Rehab period, call the company is working with you. When the Rehab period is over, stay in communication with the new Loan Servicer. They will work with you. I called many times with a lot of questions. Each time I called with my questions, I wrote down the date, time, the name of the person I spoke with and repeated the answers to my questions to the individual I was speaking just so I understood.  After 2 years, my credit score improved. I went up to a 717 credit score on Credit Karma (TransUnion), 762 credit score with Experian and 723 FICO credit score.

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Update

Helpful to 3 out of 3 people

To update since I responded, I've stayed on top of my student loans. I send additional monies every month toward principal. My credit score increased 776 with TransUnion, 781 with Equifax and 819 with Experian. Annually, I pull 3 free credit reports from the 3 agencies to verify accuracy of my credit and monitor my credit weekly with Credit Karma.  It is possible to recover from defaulted student loans.

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