I need some guidance with regards to student loans on my credit report. My student loans went into default after I dropped out of my masters program to work full time. During this time, the original lender (a private bank) transferred the loans the guarantor -- KHEAA. There are entries on my credit report from the original lender, but they simply show transferred and are not negative.
Once my finances were better, I contacted KHEAA to discuss repayment options. They offered to consolidate my loans to get a payment I could meet. To do this, I was asked to make timely payments for a prescribed amount of time -- 7 months, I think. I did that, and KHEAA consolidated the loans for me. I've paid consistently since.
I recently pulled my credit report and noticed that KHEAA reports 2 open, current, pays-as-agreed accounts -- one for the aggregate of my subsidized loans, one for the aggregate of my unsubsidized loans. That's fine. The problem is that they also show 20 paid, closed, collection accounts for the original, individual loans (2 per semester -- 1 sub, 1 unsub). That many collection accounts, even in a paid status, is decimating my credit rating. What's worse, I just consolidated last year, so I've got 6 more years of them.
Is there something wrong with this? Effectively, these student loans show up in 42 different entries on my credit report -- 20 from the original bank, 20 from KHEAA before the consolidation, and 2 from KHEAA after the consolidation. Can they show what is effectively the same loan that many times? Thanks for any help or guidance.
Full Version: Too many student loan entries on credit report
What is KHEAA?
For Federally guaranteed loans, after you rehab all of the negative TLs are supposed to disappear. Sometimes they don't and you have to write and get them updated. But I'm not sure who your guarantee agency is, so that may not apply.
For Federally guaranteed loans, after you rehab all of the negative TLs are supposed to disappear. Sometimes they don't and you have to write and get them updated. But I'm not sure who your guarantee agency is, so that may not apply.
QUOTE(citygirl8 @ Jul 17 2005, 05:38 PM)
What is KHEAA?
KHEAA is the Kentucky Higher Education Assistance Authority. They are the guarantor for most (if not all) federal student loans in Kentucky and Alabama.
QUOTE(Glitch @ Jul 17 2005, 02:57 PM)
I need some guidance with regards to student loans on my credit report. My student loans went into default after I dropped out of my masters program to work full time. During this time, the original lender (a private bank) transferred the loans the guarantor -- KHEAA. There are entries on my credit report from the original lender, but they simply show transferred and are not negative.
The loans were not transferred per se...a claim was filed against KHEAA due to the default. If your original lender is not reporting negatively, you lucked out. It should be reporting a zero balance but also something to the effect of government claim.
Once my finances were better, I contacted KHEAA to discuss repayment options. They offered to consolidate my loans to get a payment I could meet. To do this, I was asked to make timely payments for a prescribed amount of time -- 7 months, I think. I did that, and KHEAA consolidated the loans for me. I've paid consistently since.
The terminology here is wrong...guarantey agencies do not consolidate as they are not lenders. They just lumped your loans together for ease of making payments. Was it a rehab you did?? Did you make the required 12 monthly payments???
I recently pulled my credit report and noticed that KHEAA reports 2 open, current, pays-as-agreed accounts -- one for the aggregate of my subsidized loans, one for the aggregate of my unsubsidized loans. That's fine. The problem is that they also show 20 paid, closed, collection accounts for the original, individual loans (2 per semester -- 1 sub, 1 unsub). That many collection accounts, even in a paid status, is decimating my credit rating. What's worse, I just consolidated last year, so I've got 6 more years of them.
If you did not complete rehab, the reporting is correct. These are the consequences of default. If you did rehab, only the last current trade lines are deleted...the original remain.
Who did you consolidate with???
Is there something wrong with this? Effectively, these student loans show up in 42 different entries on my credit report -- 20 from the original bank, 20 from KHEAA before the consolidation, and 2 from KHEAA after the consolidation. Can they show what is effectively the same loan that many times? Thanks for any help or guidance.
The loans were not transferred per se...a claim was filed against KHEAA due to the default. If your original lender is not reporting negatively, you lucked out. It should be reporting a zero balance but also something to the effect of government claim.
Once my finances were better, I contacted KHEAA to discuss repayment options. They offered to consolidate my loans to get a payment I could meet. To do this, I was asked to make timely payments for a prescribed amount of time -- 7 months, I think. I did that, and KHEAA consolidated the loans for me. I've paid consistently since.
The terminology here is wrong...guarantey agencies do not consolidate as they are not lenders. They just lumped your loans together for ease of making payments. Was it a rehab you did?? Did you make the required 12 monthly payments???
I recently pulled my credit report and noticed that KHEAA reports 2 open, current, pays-as-agreed accounts -- one for the aggregate of my subsidized loans, one for the aggregate of my unsubsidized loans. That's fine. The problem is that they also show 20 paid, closed, collection accounts for the original, individual loans (2 per semester -- 1 sub, 1 unsub). That many collection accounts, even in a paid status, is decimating my credit rating. What's worse, I just consolidated last year, so I've got 6 more years of them.
If you did not complete rehab, the reporting is correct. These are the consequences of default. If you did rehab, only the last current trade lines are deleted...the original remain.
Who did you consolidate with???
Is there something wrong with this? Effectively, these student loans show up in 42 different entries on my credit report -- 20 from the original bank, 20 from KHEAA before the consolidation, and 2 from KHEAA after the consolidation. Can they show what is effectively the same loan that many times? Thanks for any help or guidance.
QUOTE(LynnInMN @ Jul 17 2005, 07:09 PM)
The loans were not transferred per se...a claim was filed against KHEAA due to the default. If your original lender is not reporting negatively, you lucked out. It should be reporting a zero balance but also something to the effect of government claim.
I guess I'm lucky then. They show as "Transferred to another office" and do not appear as negatives on the report. If they did, I would have 40 closed collection accounts. My beacon, already in the basement, would start digging...
QUOTE(LynnInMN @ Jul 17 2005, 07:09 PM)
The terminology here is wrong...guarantey agencies do not consolidate as they are not lenders. They just lumped your loans together for ease of making payments. Was it a rehab you did?? Did you make the required 12 monthly payments???
Technically, it is a division of KHEAA that consolidated my loans. It's called KHESLC (Kentucky Higher Education Student Loan Corporation). For purposes of my credit report, though, both the original 20 loans and the 2 new consolidated ones show up as KHEAA. I don't know if it was a rehab or not. I was not asked to make 12 payments. I made 7 payments to get out of default, then they consolidated me. They called it a FFELPS loan, I believe.
QUOTE(LynnInMN @ Jul 17 2005, 07:09 PM)
If you did not complete rehab, the reporting is correct. These are the consequences of default. If you did rehab, only the last current trade lines are deleted...the original remain.
I called them today to ask about this. Apparently, these closed collection accounts are no longer being reported on, but they will stay there in their current status for a long, long time. I was under the (apparently mistaken) impression that once I made them happy, they would not only say nice things about me, but also take back the nasty things they said already. Apparently it doesn't work that way.
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