Defaulted School Loan paid through garnishment

[crc3]

I am a newbie here and I have been searching for days on information that can help me in my situation. Unfortunately credit has its own language that is used here repeatedly, and alas I still can't translate very well. Here is my story.

 

I defaulted on my school loans which my credit report listed down as two separate ones from the Department of Education, in 2001. Over the years I used cash for everything and didn't incur any more debt. My wages were garnished by 2002 and a good portion of my check was taken and also my income tax return every year after that. I thought, oh well, I won't get a chance to miss the money and at least my debt is getting paid off even with the ridiculous fees associated with going into default. In 2008, it was like my life started back over when the loans finally came off my report because of the 7 year mark. My score shot up, I was able to get a nice car, I had a renewed since of self. Over the years I had several raises at work and through the garnishment and income tax refund collection, I actually paid off all my loans in January 2009. For the first time in years I was able to see actually how much money I was making. I had got letters from the Department of Ed saying that I might have overpaid my loan back, but I never responded, because I just really wanted bygones to be bygones. I did default on my loan and I felt I served my punishment. Now, I was looking into buying a home and decided to pull up my credit report again (before I was in the 690's) to see what my new scores were, because I had been paying off my car note every month and wanted to see if that had affected my score for the positive. I was mortified to see my two charged off US Dept of ED loans back on my report tanking my Experian and TransUnion scores to the 630's. Luckily Equifax did not list it back and I still have a 694 with them. But I am scared to death that eventually they will list it as well and I will completely be back to where I was over seven years ago. The accounts are now listed as paid collections with a recent activity as of Jan 2009. PLEASE tell me that I don't have to wait another seven years to get this off my report. It's like I feel punished for being forced through garnishment to pay off a debt and then punished even further once I do it.

 

I need help. Can I dispute this???? Do I write a letter? If yes, to who? I am clueless on how to go forward and I feel my dreams of being debt free and owning a house are dwindling.

 

Here's a recap:

My loans were opened in 1995 and 1998 and both defaulted in 2001. They fell off my credit report in 2008 and came back on my Experian and Trans Union in 2009 because my garnishment paid them off and are listed as a paid collection with last activity Jan 2009. How can I remove this from my report or make it at least a positive for me?

 

Any help is GREATLY appreciated because this is causing me much depression. Thanks to you all.

[hinklesc]

I am far from an expert in anything collections here, and I am sure others can help out that understand collections more.

 

I would think that if they were deleted, the 7 years since you defaulted had passed. That was the reason for deletion.

 

I am unsure why they were reinserted as they had been deleted. Even though they had been paid, the DATE of the default had not changed, and you should be able to delete these off as obsolete.

[Moorlock21]

They were probably reinserted because you made a payment and the student loan company reported it therefore beginning the 7 years all over again...I hope I'm wrong. I would try disputing obsolete with EX and TU and hope for a deletion that way....

 

 

Joe

[crc3]

They were probably reinserted because you made a payment and the student loan company reported it therefore beginning the 7 years all over again...I hope I'm wrong. I would try disputing obsolete with EX and TU and hope for a deletion that way....

 

 

Joe

Does it matter that it was paid off because of a garnishment? What incentive does anyone have in paying off their debts when its actually better to never pay it and let it drop off? At least then it may stay off. BTW....What does "disputing obsolete" mean?

[Moorlock21]

They were probably reinserted because you made a payment and the student loan company reported it therefore beginning the 7 years all over again...I hope I'm wrong. I would try disputing obsolete with EX and TU and hope for a deletion that way....

 

 

Joe

Does it matter that it was paid off because of a garnishment?No-The SOL restarts when a payment is made What incentive does anyone have in paying off their debts when its actually better to never pay it and let it drop off?The account shows as paid-that's about it At least then it may stay off. BTW....What does "disputing obsolete" mean?Please remove this item from my credit report because it is obsolete(past the SOL for reporting) sent to the CRA-If it has been re-aged this probably won't work