Full Version: Paid, closed/collection-will they ever fall off cr
I defaulted on my student loans several years ago. They were paid off completely through tax return seizures. The oc reported first major delinquency in Jan. of 1999. I am not sure when it was turned over to the student loan guarantee foundation, but they were paid off in March of 02. Seems like they should have dropped off by now. Any advice?
they will stay for 7 yrs from default at a min
Seven years from date of first deliquency.
ETA: Have you tried disputing with CRAs? That might get them off quicker. "Not mine" works wonders.
ETA: Have you tried disputing with CRAs? That might get them off quicker. "Not mine" works wonders.
Actually, (surprise, surprise!!), SLs have a special rule on this one -- I had the same question a little while ago. The OC (here, the lender) has 7 years from the date of first delinquency, like Quilty said. BUT, if it's defaulted and turned over to the guaranty agency, the GA has 7 years from the date when they paid the claim on the loan to report, although the lender's TLs would still be limited to the regular 7 year date. So, that's the relevant date, although I know you said that was the date you weren't sure about. Like Quilty said, though, others have had success with not mine disputes if they were paid.
Hope this helps!! Good luck!!
Hope this helps!! Good luck!!
Well, I would think that would be true for the Guaranty but not for the original lender. Does that apply to the OC?
QUOTE(TxQuiltGirl @ Aug 30 2005, 08:11 PM)
Well, I would think that would be true for the Guaranty but not for the original lender. Does that apply to the OC?
I think it is only the guarantor, but that section of the HEA is unclear (at least I think it is). Here's what I was pointed to (it's from the Higher Education Act -- they sure did think of everything on this one, didn't they
?):QUOTE
Notwithstanding paragraphs (4) and (6) of subsection (a) of
section 605 of the Fair Credit Reporting Act (15 U.S.C.
1681c(a)(4), (a)(6)), a consumer reporting agency may make a report
containing information received from the Secretary or a guaranty
agency, eligible lender, or subsequent holder regarding the status
of a borrower's defaulted account on a loan guaranteed under this
part until -
(1) 7 years from the date on which the Secretary or the agency
paid a claim to the holder on the guaranty;
(2) 7 years from the date the Secretary, guaranty agency,
eligible lender, or subsequent holder first reported the account
to the consumer reporting agency; or
(3) in the case of a borrower who reenters repayment after
defaulting on a loan and subsequently goes into default on such
loan, 7 years from the date the loan entered default such
subsequent time.
section 605 of the Fair Credit Reporting Act (15 U.S.C.
1681c(a)(4), (a)(6)), a consumer reporting agency may make a report
containing information received from the Secretary or a guaranty
agency, eligible lender, or subsequent holder regarding the status
of a borrower's defaulted account on a loan guaranteed under this
part until -
(1) 7 years from the date on which the Secretary or the agency
paid a claim to the holder on the guaranty;
(2) 7 years from the date the Secretary, guaranty agency,
eligible lender, or subsequent holder first reported the account
to the consumer reporting agency; or
(3) in the case of a borrower who reenters repayment after
defaulting on a loan and subsequently goes into default on such
loan, 7 years from the date the loan entered default such
subsequent time.
It says that it can report from 7 years after the claim is paid, but it doesn't say WHO can continue to report. I would say that only means the guarantor, but, as usual, they can pretty much read it whichever way they want to! I don't think that most OCs report beyond the "regular" date anyway, so it's probably irrelevant, anyway (by that point, they've long since gotten repaid by the guarantor, so I don't think they care all that much), just like most SL CAs don't report. But, the guarantor definitely can report it for longer.
Hope this helps!!
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