Hello all,

I'm in trouble and could really use a pick up and some assistance.

Here is short side of things.

Filed BK7 in 2005. Discharged Aug 2005. Everything on credit report was reporting fine. Paying all of my credit cards on time. Not late on anything. Most credit cards have $0.00 balance.

Last week, an old DEPT of ED student loan popped up on my credit report. It reads paid collection, charge off, late 120 days. I contacted Dept of ED and they told me they took $500 from my 2006 tax refund to pay offthe loan. OK, fine but I never got a letter regarding this particular loan. I thought it was paid off years ago. Turns out, I paid off a different one that had the same amount.

So, I'm talking to the Dept of ED and they tell me that this loan is a 1986 National Direct Student Loan that I got from the University I attended. I thought I paid it - but the guy tells me I had another just like it, the same amount in 1985 that was paid in full.

OK, but why is it BACK on my credit report? It was there YEARS ago(1988-1998) and I even got an FHA loan in 2000. Isn't the SOL over for this???

He tells me it was turned over to collections in 2003 - and paid in full in 2007.

I'm glad it's paid because I knew nothing about it. I don't understand how I could have gotten an FHA loan with this NDSL outstanding. I've sinced refinanced my home (2006) but I just don't get it.

Is there anything I can do to get this off my credit report. This is like the kiss of death for me since I have a 2005 BK!

Thanks

Your NDSL was subrogated by the DOE. This basically means that the school was unable or failed to collect the balance. The DOE pays off the school at a discount and they collect on it.

If claim was paid by the DOE in 2003, it will remain on your credit report until 2010. The 7 year reporting cycle starts all over again.

Thank you!