okay my fiance had a sallie mae student loan. it defaulted due to her divorce and seperation from her ex husband and im assuming its been transfered to their internal collections department. their is now a new trade line on her credit reports called "calif student aid". and she is now resuming the payments. but each month calif student aid is report a new KD mark on her credit report after she paid that months payment. What the heck is going on and what can i do? please help me out, and if you need any more information just let me know!

She has defaulted on a federal loan and CSAC has paid the default claim....this means that SM has paid the claim and is no longer in the picture.

You cannot "resume" payments on a default...it just doesnt work that way., When you default, the entire balance becomes due in full immediately and will report negatively until the last penny is paid. Also there are additional collection fees of from 18-25%.

She now needs to work with the CSAC or whatever CA is handling it to resolve the default, either by paying it off in full immediately, rehabbing it or consolidating the loan.

okay heres what i found out. she defaulted on the sallie mae but it got transfered to ed fund. she is paying ed fund monthly on time as they are automatically deducting it out of her checking account that she gave them the information for. i am wondering why the calif student AID TL is updating KD every month. who is this CSA tradeline (is it edfund?) and why are they marking KD every month?

I am 95% percent sure that California Student Aid and Edfund are the same. Someone can correct me if I am wrong.

Basically. CSAC is the state office....Edfund is a private entity created by CSAC to handle the loans. Confusing as mud.