Rehabilitation Success Story

Hi Betsy,

I am writing this to say thank you! I contacted you over a year ago regarding my delinquent student loan and you gave me the courage to contact the creditor. I did, and in January 2007, I completed the 12 month rehabilitation program. I have been told that a new lender will be taking it over and I hope that they too will offer affordable payments that I can keep up with. May I ask a question? Will this help my credit report? Thank you for your time Betsy.

Sincerely,
Eileen

Dear Eileen,

Congratulations on successfully completing the loan rehabilitation program and getting your student loans out of default status. This will indeed improve your credit as the credit lines showing the defaulted loan will be removed and your loan will show in good standing.

Note however, that the rehabilitation will not remove any delinquencies that appeared as your loan progressed towards its defaulted status but those, while negative, are not as detrimental as the actual default. Thank you for the update and for sharing your success story!

Best of luck,
Betsy