Hello Lynn.

I have a 20 year old loan that was consolidated in 1998 and defaulted on in 10/2001. I have several lates in 2002 -2004. I started paying it back in 2005. I am now back in school and have an in school deferment. The loan is down to 2,500. My question is if I pay it off this year, when will it come off of my reports?

thank you for all that you do.

If you defaulted in 2001 and did not rehab or consolidate after that, all of you payments are late/collections. With a default date of 10/2001 it should fall off later this year by itself.

The loan itself is not 20 years old but 10 since consolidating in 1998 turned it into a new loan.

It must have come out of default through rehab or consolidation at some point if they granted an in-school deferment.

Thank you.

I think you are right about it taken out of default, I just can't remember. I checked the national student loan site and it is listed as defaulted 2000, in repayment 3/2001. Will this affect the fall off date? I want to apply for a mortgage next year and I believe taking this off will help my score because I was really late during 2002-2005. And they are still listed on my credit reports...

The lates will gradually age off after 7 years.

I'm sorry to keep questioning this, I guess I am confused. why would they use the late payment dates instead of the default date? Does that mean that if I am late this year, then pay it off that the late will stay on 7 years?

Your defaulted tradeline will drop off this year. Since you must of rehabbed or consolidated to bring your loan current, your new loan starting in 2001 is a completely new tradeline If you pay it offf in full today the lates will remain for 7 years from the time they occured.