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Student Loan Rehabilitation + Credit Report?

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studentofdebt View Drop Down

Joined: 30/August/2016
Points: 2
Post Options Post Options   Thanks (0) Thanks(0)   Quote studentofdebt Quote  Post ReplyReply Direct Link To This Post Topic: Student Loan Rehabilitation + Credit Report?
    Posted: 30/August/2016 at 1:57pm
Hi All,

First and foremost thanks to everyone here for the wealth of information compiled and helpful advice - I've spent some time perusing the boards and I can't believe how much I've learned.  

I have a couple of questions regarding the effect that the rehabilitation programs offered at the federal and provincial levels would have on my credit report.  I have looked around online and on these forums and can't quite find a clear cut answer from someone who has seen the effect first hand and recently.

Here's the breakdown of whats happening on my credit report currently:

1.  Tradeline for GOVT STUDENT LOANS, marked as I5, original balance of $8500, current balance $0, marked "Account Transferred, Paid".  Last Activity 2012-11.

2. Collection Item with a collection agency on behalf of MTCU Student Support in the amount of $2500, last payment 2012-12.

I assume the first item to be the federal portion of my defaulted student loan which has presumably been assigned to the Canada Revenue Agency for collection.  

I assume the second item to be the provincial portion of my loan (Ontario) which has been assigned to a collection agency.

The CRA has taken a tax return or two and some GST credits in the past - I'm not sure which loan these amounts were applied to however.  The loan itself is from 2009 and I haven't paid on it ever (aside from the taxes/GST).

I am finally in a position where I am financially able to service these loans and would like to take advantage of the rehabilitation programs I linked to above in order to bring them back into good standing.  However, I am very concerned about how the rehabilitation programs will reflect on my credit report.  

If I begin paying on the Ontario portion of the loan and have it successfully transferred back to the NSLSC, will the collection item remain for another 6-7 year period?  Or will the collection line be removed as the loan is back in good standing?  If I rehabilitate the federal portion, will I effectively be extending the time that the late payments can be reported on the tradline by another 6-7 years?

I am aware that Ontario credit reporting law states that negative items related to student loans may be reported indefinitely, but have also found individuals who attest that they did in fact purge according to standard timelines (maybe by error?).

It would be fantastic if I could hear from someone who has undergone the rehab programs and actually seen the before/after on the reports - but of course, any advice at all would be helpful!

I would love to satisfy these loans now that I am able but am looking to position myself for a mortgage in the next 2 - 3 years and would hate to shoot myself in the foot because I didn't have the correct information.

Thanking you all in advance for your patience in reading this and your consideration!
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Alexandria18 View Drop Down

Joined: 21/November/2017
Location: Toronto, ON
Points: 3
Post Options Post Options   Thanks (0) Thanks(0)   Quote Alexandria18 Quote  Post ReplyReply Direct Link To This Post Posted: 21/November/2017 at 8:19am
Hi there,

I'm in nearly the same boat with regard to my provincial and federal loan situation and i'm wondering if you might have an update that would be useful? Thanks
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perpetualowage View Drop Down

Joined: 20/April/2009
Points: 7
Post Options Post Options   Thanks (0) Thanks(0)   Quote perpetualowage Quote  Post ReplyReply Direct Link To This Post Posted: 15/May/2018 at 2:14pm
When I rehabilitated the Federal portion of my OSAP loan in 2014 the entry on my credit report has little info and a denotation of TR - Transferred. Zero balance and Zero past due with the number of its highest amount. It lists the date of my last payment (the last one before defaulting) and then jumps about 6 years to 2015 on the other rehabilitated entry (when i started making monthly payments).
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