Rehabilitation agreement - wording?

Posted by rabptg (129.42.208.182) on February 16, 2004 at 02:30:07:

I requested rehabilitation on a defaulted student loan for the purposes of repairing my credit, and I recently received a rehabilitation agreement from the collection agent. The letter lists the terms of the agreement (to which I have agreed) and then goes on to say “It has been explained to me and I understand that upon successful rehabilitation my account will be current but if I default on this account I will not be eligible to rehabilitate a second time. I also understand that interest at the contract rate of 5% will continue to accrue during this agreement.” Is this the standard wording for rehabilitation agreements? It was my understanding that after I made the proper payments, my account would be returned to the college, and that the default would be removed from my credit report. But the letter I received only uses the word "current." Any idea if the wording of this agreement is going to ensure that the default is removed from my credit report? Thanks.

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