I apologize for the double post... I posted in the Credit Forum not even thinking of posting to the student forum (considering this is a student loan.) Here's the situation:

My DW has a Perkins loan thats showing as a negative on her CR. Each time it is disputed, it comes back as valid and a DV to the US Dept of ED did not help either time. Here's an overview of the situation:

Loan defaulted as of Feb 1997
Loan sent to Dept of Edu collections in 2003
Loan paid in full as of Aug 2005

Now the CR says that it is scheduled to be reported until 2010 because it was sent to collections in 2003. She sent a letter arguing that, since no payment was never made to make it current and then dfeliwuent again, they SOL goes by the date of first deliquency and not by the date that it was sent to collections. The Dept of Edu sais that because it is a perkins loan, they are allowed to use the "date paid" as the starting date which means that they can report for 7 years from the date that it was paid. Of course, that would mean that it would come off the report in 2012 and not 2010.

So what's the deal? How does the reporting SOL work for the perkins loan? Do they still have to use the DOFD or can they actually use the date it was sent to collections or the date it was paid in full? Is there some special law out there that overrides the standard SOL? Keep in mind that the debt is paid in full so there is no more collection activity, other than the negative item on her CR.

Thanks for any help.

Reporting on the loan will continue until seven years from the date that the claim (loan) was paid by the government to the original lender. In this case, it will be listed till 2010.

The loan was subrogated by the DOE which started the reporting cycle all over again in 2003. The same thing happens to FFELP loans.

Thanks for the help. Just one more question... does anyone know th section or title that grants them this exception to teh 7-year rule? I still can't seem to find it anywhere and it seems to be rarely mentioned.

Strangely, I had actually just posted this a couple of days ago - good timing!!


The reporting date extension is in the Higher Education Act of the U.S. Code (20 U.S.C. 1080(f)) as an exception to FCRA, as follows:

(f) Duration of authority
Notwithstanding paragraphs (4) and (6) [1] 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.



Hope this helps!

That's what I was looking for..thank you!