sutdent loan with sallie mae

plat1997 · 02-13-2007, 02:55 PM

has anyone out there had luck in dealing with sallie mae? i am showing 120 past due on my CR and i want to know if i can either settle with them and have them remove the trade line or update it to show never late and start making payments on it again to show a positive history. I read on here that if you pay on time for 1 year all of the negative past due history will go away is that true? or should i just let it go to collections and dispute it?

Qtip · 02-13-2007, 03:53 PM

Quote:

Originally Posted by plat1997

has anyone out there had luck in dealing with sallie mae? i am showing 120 past due on my CR and i want to know if i can either settle with them and have them remove the trade line or update it to show never late and start making payments on it again to show a positive history. I read on here that if you pay on time for 1 year all of the negative past due history will go away is that true? or should i just let it go to collections and dispute it?

Technically that is the way is supposed to work, but they do not always do as they are supposed to. I had a hell of a time to get pheea to report properlly.

Sally mae is a pain too, DW has one late from about 5 years ago, they always verify when we dispute the trade line. In the past i heard that if the account is paid off that they do not always verify but I do not know if there is any truth to that statement.

jlynn · 02-13-2007, 03:55 PM

Quote:

Originally Posted by plat1997

has anyone out there had luck in dealing with sallie mae? i am showing 120 past due on my CR and i want to know if i can either settle with them and have them remove the trade line or update it to show never late and start making payments on it again to show a positive history. I read on here that if you pay on time for 1 year all of the negative past due history will go away is that true? or should i just let it go to collections and dispute it?

Sallie Mae never goes away - she will get her money period. She will not go away in a dispute - SM TL's are glued to reports. She will not negotiate.

If you look back at what you read on here, you need to request a REHAB of the loan. Just starting to pay it will not make the old baddies go away. But if it is rehabbed, after 12 consecutive months of on time payments, they will remove the old negative remarks.

Oh yea, and I believe collection agencies can charge some ridiculous collection fee of like 30%. Also, they can garnish your wages without a lawsuit (administrative garnishment).

lostnjax · 02-13-2007, 03:57 PM

Yes, it's true. It's called a Rehab program. I had a friend that did this and according to him they did everything as promised by removing all negative info and reporting a positive tl but if you miss one payment you start all over and possibly become ineligible for rehab.

Government backed loans don't typically settle because of the obvious. The bank or lender was guaranteed their money in full by the Govt.

You don't want it to go to collections because student loan collectors work under aa totally different umbrella. They can garnish wages, take tax returns and an assortment of other things WITHOUT taking you to court.

Here's a link that can help answer more questions on rehab:

http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html

centex · 02-13-2007, 04:41 PM

The rehab generally will only remove the derogatory reporting placed by the guarantor of the loan (ie. TGSLC or other state entity). I do not believe there is a requirement for SallieMae to remove the original derogs.

That said, it is always better to keep things in good shape with the SallieMae people than to let it go to collections through a guarantor. Remember that student loans are a different critter from traditional debt- once you default, they can reach out and garnish wages and tax returns without taking you to court.

The agency ombudsman is often a useful place to start with the mea culpa phone call...

plat1997 · 02-13-2007, 08:56 PM

Quote:

Originally Posted by lostnjax

Yes, it's true. It's called a Rehab program. I had a friend that did this and according to him they did everything as promised by removing all negative info and reporting a positive tl but if you miss one payment you start all over and possibly become ineligible for rehab.

Government backed loans don't typically settle because of the obvious. The bank or lender was guaranteed their money in full by the Govt.

You don't want it to go to collections because student loan collectors work under aa totally different umbrella. They can garnish wages, take tax returns and an assortment of other things WITHOUT taking you to court.

Here's a link that can help answer more questions on rehab:

http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html

do i just call them tomorrow and ask about a rehab program. i would not mind doing this as long as i can get the neg. info removed. i would like to turn it into a positive trade line

direred · 02-14-2007, 03:33 AM

Rehab is only applicable on student loans if your loan's in default (and has been returned to the guarantor).

At ALL costs you want to avoid this, because it'll cost you HUGE penalties (25% of the balance of the loan can be added for collection costs) and your interest rate will jack.

There is no legal way to get the lates removed. Student loans are an exception; delinquencies are required to be reported per the Higher Education Act. Alas.

plat1997 · 02-14-2007, 09:01 AM

Quote:

Originally Posted by direred

Rehab is only applicable on student loans if your loan's in default (and has been returned to the guarantor).

At ALL costs you want to avoid this, because it'll cost you HUGE penalties (25% of the balance of the loan can be added for collection costs) and your interest rate will jack.

There is no legal way to get the lates removed. Student loans are an exception; delinquencies are required to be reported per the Higher Education Act. Alas.

so i guess i am just stuck. and have to pay them back.

jlynn · 02-14-2007, 10:34 AM

Quote:

Originally Posted by plat1997

so i guess i am just stuck. and have to pay them back.

yes.

jlynn · 02-14-2007, 10:43 AM

Something that hasn't been mentioned - if its 120 days past due, and you are struggling to make payments, I believe you can also request a hardship deferment to stop payments until your financial situation gets better.

It won't help your credit report get any better - but it might be something to look into, as it could stop your cr from getting worse.

plat1997 · 02-20-2007, 02:44 PM

Quote:

Originally Posted by jlynn

Something that hasn't been mentioned - if its 120 days past due, and you are struggling to make payments, I believe you can also request a hardship deferment to stop payments until your financial situation gets better.

It won't help your credit report get any better - but it might be something to look into, as it could stop your cr from getting worse.

can anyone let me know what section in the FCRA that requires the OC to notify you 5 days before or 30 after they put negative info in your CR? I believe that they have violated my rights by not sending me any corespondence of this or that the actually reported negative information.

Hedwig · 02-20-2007, 07:27 PM

I don't know of any such language in the FCRA. If a tradeline had been deleted and is then reinserted, I believe there is a notification requirement.

I think Sallie Mae is going to play by the book. You're not going to get any negatives off by trying to find violations.

jlynn · 12-12-2007, 12:53 PM

Someone might take you seriously if you weren't so intent on posting your unauthorized link everywhere.

neil5623 · 12-12-2007, 01:24 PM

I took a peek at it before the link mysteriously disappeared. I don't think SLMA will be getting nervous. It had a "donate to" link.

Hedwig · 12-12-2007, 01:32 PM

All the more reason it's spam!!