Hi, is it true that if you defaulted on a student loan but paid it off it will still report as being 120+ lates until the 7 years reporting timeline runs out?

I tried to dispute with EQ but keep coming back verified, I called the state higher education assistance people who is reporting it and told them my loan was paid off in 2001 but still reporting as being 120 days late last month and they said, yes because once it defaulted it is late and will report as such even if you have paid it off??? Doesn't sound right to me.

Only EQ is reporting it as being currently 120+ days late, but it's killing my credit score.

Yes, it's correct.