Hi there everyone! I've got a problem... I had two student loans which I defaulted on.. but then I accepted their settlement agreement and paid them off. Now, on my credit report I have these two entries:

U S DEPT OF ED/FISL/CH - Closed - Legally paid in full for less than the full balance
U S DEPT OF ED/FISL/CH - Closed - Legally paid in full for less than the full balance

Which is correct. However, there is a 3rd entry, apparently from a CA that reads as follows:
US DEPT OF EDUCATION - Closed - Claim filed with government for insured portion of balance on loan (which lists a value of the other two student loans combined)

Is this right? Can they do this? I don't see how the same debt can be listed multiple times on my CR by different CAs. It isn't like you have two entries for a defaulted credit card... one from the bank and one from the CA. I've disputed it several times and they always come back "confirmed". Am I missing something? Is there anything I can do? To clarify, these accounts have been PAID.

The reporting is correct. Your original lender which was the DOE defaulted you to the collection services division of the doe. Essentially a claim is paid. Actually what you call the 3rd portion is the original loan.
The only thing that will remove them is time and patience.

I still don't understand why both the original lender AND the collections services are listed. Shouldn't there be only ONE entry for ONE loan? Isn't this information misleading, considering there is nothing on my CR that indicates that these 3 entries are actually all the same debt? Why was my original SINGLE student loan split into TWO collections entries on my CR? I have 3 negative entries on my credit report for ONE defaulted loan! This seems absurd. Is this just typical "we're the government, so we make our OWN rules" bs?

This is the way it is with government loans...always has been. The claim is paid and zero'd out and the guarantor for the loan, in your case the USDOE, reports the claim. It really no different for a credit card being charged off and sold to a JDB...both report.

Uhhhhhhhhhhh ... a cc that defaults WILL have a CA and the OC listed on your CR. I have NO idea where you got the idea that they can't or don't.

I have a similar situation, my loan(s) went into default and they have been satisfied, yet I have 5 derogatory listings. Since my original loans are well past 7 years, shouldn't they be removed?

Thanks

They will not be removed until seven years past DOLA, which in the case of SLs is when they govt paid the claim. That may be two years and sometimes more past the last delinquency with the original lender.

Thank you. One more question though if you don't mind to help me understand all of this.

NJHEAA has one on Equifax stating derogatory(this has been paid in full) with an open date of 3/01 and reported date of 6/01

NJ Higher Ed account reads
TU - Status: Derogatory EX - Status: Derogatory EQ - Status: Closed(Paid)
Open 7/01 Open 7/01 Open 7/01
Reported 4/05 Reported 3/05 Reported 4/05

WachoviaEd account reads
TU - Status: Open EX - Status: Derogatory EQ - Status: Closed(Paid)
Open 10/97 Open 10/97 Open 10/97
Reported 5/99 Reported 4/01 Closed 4/01

WachoviaBk account reads
TU - Status: Open EX - Status: Derogatory EQ - Status: Closed(Paid)
Open 12/95 Open 12/95 Open 12/95
Reported 11/99 Reported 7/01 Reported 7/01

Are any of these eligible to be closed since the open date is as early as 95, or am I going to be sticking with the reported dates? Also if that doesn't work, should I be fighting with the CRA's that the status's of these should certainly state paid? If the best that I can do is have them change the status to Closed(Paid), will this help my credit? Please advise since I am going crazy as what to do.

Thank you very much!

TU should be reporting closed. They will continue to report until 7 years from your default which looks like around 07/01.

Thank you very much. So I already put them in dispute with the CRA's not realizing that all four should be listed. Once I get a response from them, I will ask them to at least enter the correct information. With the correct information entered, you think that would help my credit reports a little bit since my FACO's are 615/598/607? These are the only negatives on my credit report.

Thanks again..

Hate to backpeddle, but who is saying that the original lender AND the Collections Agency are always listed on your credit report? This is flat out not true. If you have, say, a bank of america credit card, and you default on it, it won't list "Bank of America - Charge Off" AND "Whatever Collections Agency - In Collections". You are only allowed to have the same account listed ONE time. One Account = One Entry on your credit report, from whoever currently owns the debt. Your credit report is to monitor how you handle your accounts (whether you paid them or not) it is NOT a running tally of who your bad debt has been sold to.

In your dreams. You most certainly will have both lenders listed on your credit report if you charge off on a credit card. The original lender, say in your case will say charge off with a zero balance. There is a 7 year SOL from the date of last payment when that will drop off your credit report. At the same time you may have a collection agency either as a JDB or contingency collector that may also report.

Three whole posts and you've got it all figured out, huh?

You could not be more wrong if you tried. The OC (that would be original creditor to the uninitiated) will report for seven years past the date of last activity. That is typically when the account is charged off. At that time, they usually either sell the account or turn it over for further collection activity to a collection agency (a CA for those who don't know). The CA can then list that account on your report as well. It's legal; it happens EVERY DAY.

What can NOT happen is that more than one CA is listed on your report at any given time if they are listing the same debt. So, CA #1 gets the account from the OC. They are not successful in collecting the account, so they sell it to CA #2. By law, the first CA is supposed to remove the account from your report. They no longer hold the account and you didn't default with them, so they are not allowed to report it. If they DO continue to report, a simple dispute should get it off the report.



I'm really not sure where you got your information, but before you post anymore incorrect information, you may want to visit this forum.

Can I have you expand on this a bit? I have 2 student loan's that started with the DOE. I had some issues and ended up defaulting on both of these SL's. They were sold to a CA who was not able to collect on them. They were then moved on to CA #2 who was also unable to collect. I finally got them into the rehab program (which I just finished, go me!) and plan to get them payed off in the next year or two. The point of this post is to find out if CA #1 and #2 should still be on my credit report? The last reporting from either of those was 2002. I think I might have made one or two payments each to these CA's but never did anything more than that. My SL's are by far the biggest baddie on my CR. They account for 8 TL's on my CR (all negative of course) and it all started with only 2 loans . Any thoughts? I am now waiting for the DOE lines to clean up per the terms of my rehab.

My comments were strictly in response to C Wallace's comments about OCs that have nothing to do with SLs. Sorry for the confusion.