Issues With Sallie Mae and Dept of Ed

[franknitty69]

So my wife had student loans with the Department of Education. They where automatically transferred to Sallie Mae. She initiated a deferment, but Sallie Mae is reporting her as 120 days late.

 

Dept of Ed is still reporting as well so it looks like she has twice as many loans (11 to be exact). She has lates on those before Sallie Mae picked them up.

 

So i have a few questions. First is Dept of Ed still supposed to be reporting even tho Sallie Mae has them?

 

Should she contact Dept of Ed about removing the lates and/or tradelines or dispute them with the CRAs?

 

With Sallie Mae, she's supposed to be in forbearance. Should she talk to Sallie Mae about removing the lates or dispute with the CRAs?

 

and finally, should she apply for IBR?

 

thanks guys

[hodap2001]

Student loans can be transferred at any time throughout the life of the loan; therefore, it is not uncommon for both of them to report since the Department of Education is actually the holder of the loan and Sallie Mae is a Federal Loan Servicer. Sallie Mae services the account from billing, collections, etc.

 

Are the negative remarks being reporting accurately and legally in accordance with the fair credit reporting act? Do you have any hard documentation that should prove these lates shouldn't exist? i.e. payments, deferments or forbearance? Otherwise, you are pretty much stuck with the lates.

 

Why is your wife using a forbearance? A forbearance should only be used in extreme circumstances and you don't have a lot of time available with forbearance's. Why are you in enrolled in an eligible income driven repayment plan (i.e. IBR, ICR, Pay As You Earn)? These repayment plans are based upon your annual Adjusted Gross Income that is reported annually on your income tax return and your monthly payment could be as little as $0.00 a month! Yes, you read that correctly, $0.00 a month! There is no reason you should ever have to use a deferment or forbearance or even default on your student loans with these income driven repayment plans!!

 

Good Luck!