Do defaulted student loans fall off the credit reports?

[RSmith]

Do defaulted student reports fall of the credit reports after 7 years? If a student loan did not fall off, how can it be taken off the credit report? For example, say the loan was from 1988 and defaulted in 1995. Should it still be on the report?

 

Also, can a defaulted student loan be reported multiple times. For example, say there is 1 defaulted student loan from Sallie May. They then sell the loan to a second company which reports it as late. The second company sells it to a third company that reports it late, and the secon company reports it as paid off and late. Can that one student loan be reported 3 times by 3 different collection agencies? Or should it only be reported once, since it is only one loan?

[Cynic]

Do defaulted student reports fall of the credit reports after 7 years? If a student loan did not fall off, how can it be taken off the credit report? For example, say the loan was from 1988 and defaulted in 1995. Should it still be on the report?

 

If a default claim is paid in 1995, it would fall off after 7 years unless it's rehabilitated, consolidated, or subrogated by ED.

 

Also, can a defaulted student loan be reported multiple times. Definitely. For example, say there is 1 defaulted student loan from Sallie May. They then sell the loan to a second company which reports it as late. The second company sells it to a third company that reports it late, and the secon company reports it as paid off and late. Can that one student loan be reported 3 times by 3 different collection agencies? Or should it only be reported once, since it is only one loan?

 

"Collection agencies" don't report...if a loan is sold from one lender to another, each lender reports the history for the time they had the loan. Once a guantor pays a default claim on a loan that starts a new 7 years, and if the loan is subrogated by EDthat starts another 7 years...

 

Because of the FCRA exemption for student loans, and the lack of SOL defense against collecting them, it's best to get them out of default and back into good standing.

Edited April 5, 2007 by Cynic

[NJT]

have you tried to dispute this with the CRA? I had SEVERAL sallie mae TL's that I disputed and either they took pity on me and deleted the late pay or they were just too busy to respond in 30 days cuz I'm showing "never late" on all 3 CBR on all sallie mae TL's

 

TRY IT!

[LynnInMN]

have you tried to dispute this with the CRA? I had SEVERAL sallie mae TL's that I disputed and either they took pity on me and deleted the late pay or they were just too busy to respond in 30 days cuz I'm showing "never late" on all 3 CBR on all sallie mae TL's

 

TRY IT!

 

OP is talking about a defaulted tradeline, not a few lates. Guarantors and Ed are very strict on what can and cannot be removed.