Alright Cynic/LynninMN & other experts (HELP!!)

[Miss Bliss]

hi sweethearts...it's been a while since I last posted, and just to let you guys know...as of June 2007, I am out of default and have been making my on-time payments to Direct Loans...($258.08 ). Good thing, right....now here's the cunundrum...and this is where I need your expertise.

 

I had my report pulled because I'm looking to purchase my first house. There are some things that are concerning me on my report and I think it is affecting my already low score adversely. I want to get things on my student loan to accurately report, because it's looking like I have over 70K in loans when in actuality I have a loan balance of $49,925...so that's skewing my DTI horribly.

 

in the credit section my loans ending in 6376-3 are reporting correctly to all three bureaus and are on time and all of that...showing since 9/2004. (thanks to rehabilitation)

 

now there is another account ending in 6376-4 with an owed balance of 22,937 that is reporting to Experian. I called the Department of Education and they stated that this account doesn't exist in their system. So that sent a red flag to me...it's on my credit report, but it's not in Direct Loans system....the representative on the phone asked me to send in my credit report....cool, i did such. What is the likelihood of Experian removing that tradeline because even though it's in the credit section...it really messes up my DTI.

 

next...i have 2 entries in collections....account ending in 6376-1 (DO=9/1997) (only reporting to Experian), it shows a high balance of 27,811, doesn't say anything about lates...just states it's in collections..it doesn't have a balance owing or past due amount. This was one of the loans I consolidated. I thought when you consolidate loans, the loans are removed from collections, but the originator has the option of deleting the tradeline or reporting the lates or marking it paid...something.

 

the second one is account ending in 6376-2 (DO=8/2000;DOLA=09/2003) with a balance of $14,859 in which $0 is in the balance owed, and $0 is past due. There is nothing mentioned about lates, it just states collection account; student loan assigned to government. This one is reporting to all three agencies. This is the other account that is showing in collections. I'm trying to figure out if I don't have a balance nor do I owe anything....why or how is it in collections? I'm sure it's adversely affecting my credit scores. Can this be deleted, can something be said about the loan being consolidated, because this is one of the loans that was consolidated.

 

account 6376-1 and 6376-2 were consolidated to make 6376-3.

 

i'm trying to get this all squared away, and I want to know will this affect my eligibility for an FHA loan.

 

what to do...what to do. I'm coming to y'all because I haven't received bad advice yet.

[LynnInMN]

hi sweethearts...it's been a while since I last posted, and just to let you guys know...as of June 2007, I am out of default and have been making my on-time payments to Direct Loans...($258.08 ). Good thing, right....now here's the cunundrum...and this is where I need your expertise.

 

I had my report pulled because I'm looking to purchase my first house. There are some things that are concerning me on my report and I think it is affecting my already low score adversely. I want to get things on my student loan to accurately report, because it's looking like I have over 70K in loans when in actuality I have a loan balance of $49,925...so that's skewing my DTI horribly.

 

in the credit section my loans ending in 6376-3 are reporting correctly to all three bureaus and are on time and all of that...showing since 9/2004. (thanks to rehabilitation)

 

now there is another account ending in 6376-4 with an owed balance of 22,937 that is reporting to Experian. I called the Department of Education and they stated that this account doesn't exist in their system. So that sent a red flag to me...it's on my credit report, but it's not in Direct Loans system....the representative on the phone asked me to send in my credit report....cool, i did such. What is the likelihood of Experian removing that tradeline because even though it's in the credit section...it really messes up my DTI.

 

Keep in mind the CSRs at the DOE do not have access to all accounts. A closed/paid account may already be archived.

 

next...i have 2 entries in collections....account ending in 6376-1 (DO=9/1997) (only reporting to Experian), it shows a high balance of 27,811, doesn't say anything about lates...just states it's in collections..it doesn't have a balance owing or past due amount. This was one of the loans I consolidated. I thought when you consolidate loans, the loans are removed from collections, but the originator has the option of deleting the tradeline or reporting the lates or marking it paid...something.

 

Nope. Consolidation does nothing for your credit report except zeroing out the balance.

 

the second one is account ending in 6376-2 (DO=8/2000;DOLA=09/2003) with a balance of $14,859 in which $0 is in the balance owed, and $0 is past due. There is nothing mentioned about lates, it just states collection account; student loan assigned to government. This one is reporting to all three agencies. This is the other account that is showing in collections. I'm trying to figure out if I don't have a balance nor do I owe anything....why or how is it in collections? I'm sure it's adversely affecting my credit scores. Can this be deleted, can something be said about the loan being consolidated, because this is one of the loans that was consolidated.

 

account 6376-1 and 6376-2 were consolidated to make 6376-3.

Again, when you consolidate, it only zeros out the balance. The account simply turns into a paid collection.

 

i'm trying to get this all squared away, and I want to know will this affect my eligibility for an FHA loan.

 

As long as your loans are out of default, you qualify for a FHA mortgage.

 

what to do...what to do. I'm coming to y'all because I haven't received bad advice yet.

[Miss Bliss]

ah ok....because even when i look my accounts up on the DOE website, where you can check the status of your loans, there is 6376-1, 6376-2 and 6376-3. I would think there is a record of 6376-4 somewhere.

 

Ok, because it's not even showing the collection as being marked paid...it just says collection. I have other paid collections on my credit report that have the notation paid collection next to it. So that is something that I should look into, at least them marking my collection as being paid. correct?

 

thanks for your help though