Hello, I had several federal student loans that I consolidated with citibank totalling 30,000. New york State higher education services(NYSHESC) was the original guarantor of the loans. When the loans were with citibank I defaulted on the loans and they are reported by citibank on my credit report as collection account. They show a zero balance with citibank because the loans got sent back to the guarantor of the loan, NYSHESC and are now being reported on my credit report by them as a separate account. Through some valiant effort I got citibank to remove the default reporting status of the loans to show as paid as agreed. I consolidated my loans from NYSHESC to Direct Loans. The problem is the loan is being reported by NYSHESC as paid collection/chargoff. I called and asked them if they would be willing to make a goodwill gesture and change the payment status to paid as agreed since after consolidation with direct loans I have been making good ontime payments. They told me that they report the loan as a zero balance and it is up to the CRA's on how they report it. This sounds kind of odd, you think they would have the authority so say how it should be reported, yet they told me they cant? So my question is that is there anything I can do to get this default reporting removed? I think I read somewhere that if you have federal loans and that if you consolidated and your loans have been rehabbed that the last person that had your loan must either delete the listing or show paid as agreed. Is this true? I really didnt officially complete rehab, I just consolidated them from NYSHESC to direct loans. I would really like to get this removed because this 30,000 loan is showing on my CR three times and its putting my debt to income ratio through the roof!!!Any help or ideas would be appreciated, Thanks.

By law NYSHESC is required to report for 7 years from your date of default, regardless of whether or not you consoldidated. The only way to remove this negatgive line would have been to rehab before you consolidated. As it stands right now, the are reporting according to law. Guarantors are not permitted to goodwill tradelines.

Citibank is also required to report for that same seven year period. Yup, two negative tradelines. It could reappear.