Re: could you explain the difference please...

Posted by 30ftshadow (209.145.133.228) on March 06, 2003 at 18:06:28:

In Reply to: could you explain the difference please... posted by dp on March 06, 2003 at 11:07:12:

That's a deeper question than I have time to answer. I will try to follow up tonight.

The main difference is that if you rehab, you will be bringing your loans to a current status and will, for the most part, return the bad marks from the original lender or servicer updated to "pays as agreed" on your credit reports. Whereas if you consolidate, the old lines are not updated, but instead are marked as "Paid collection" or "paid charge off"--whichever status they are in now--and will continue to show on your report.

Here's a few questions that would help me follow up:

Who was the original guarantor
What type of loans are they "Direct" or not, Stafford.

Have you positive that you've defaulted? If you have not, then rehab is not an option.

30ft.

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