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Unusual Situation, 1 monthly payment for 9 student loan account= 9 delinquencies!


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Well, I'm on my journey to try and buy a house. My scores are currently EQ 635, EXP 585, TU 601. One of the major things hurting me are my student loans. 15 months ago I allowed them to go 90 days delinquent before I got smart and decided to fix my credit. I paid one monthly payment to Nelnet, but at the time there were 9 different accounts, but only 1 bill.

 

So, the dilemma is, I paid one payment, received one bill, but the delinquencies show as 9 separate delinquencies. I am hoping that in November I may see a bump in the credit, as the delinquencies will all be over 12 months old. But, is there any way to get the credit bureau's to show this as one delinquency in stead of 9? I received one bill, and made one payment. I didn't even know I had 9 different accounts until I looked up my credit report. Help!

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That's the hard lesson about student loans. Each term that you took out a loan became a new loan and a new TL. Skip a payment and you get multiple dings. This is why I advised all of my kids to consolidate the loans. If ever they are late after consolidation, there is 1 ding not multiples.

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This happened to me, I had over 50 lates from direct loans (my wife did as well). I disputed all the lates and they were all removed. I also had lates from greatlakes (my direct loans were transferred to them). I tried to dispute them as well but didn't have any luck my first go around. So I re-consolidated (I had one loan that wasn't through Greatlakes), after that the lates from the old tradeline disappeared. I'm now late free. I do agree that it's insane all these studentloans count as separate tradelines, being late on them is a great way to ruin your credit. I'd consolidate them asap.

I've had problems gettin lates removed from my wifes reports on sallie mae, so YMMV.

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Sadly nobody educates the borrowers on these risks and potential credit pitfalls when they are taking out the loans. Sure, you sign promissory notes and know the consequences of default, but I think it would be prudent if they taught things like consolidation, deferment, etc .. up front.

 

Consider me one of the many who destroyed his credit for a long time thanks to student loans. Thanks to sites like this I was able to figure out how exactly to clean up that mess and get things to where they are now.

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I consider myself very lucky. I just totally ignored the loans for years (along with credit reports/scores). Finally got them into rehabilitation. After ten months of payments to the rehabilitation company, they went back to a regular student loan servicer. They all show up as being 11 year old accounts and show no negatives even though I've only been paying on them a little less than two years. So I've got a number of 11 year old TLs that only report positive history despite my best efforts to the contrary.

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I cringe every time I read the words "student loan."

 

 

Me too, never had to deal with them, until i said "I Do" Nothing in those vows warned me about SL's

 

I second this. I never had a student loan until I got married. My wife has several. She is also a stay at home mom now. Very useful, love to make that payment each month.

 

 

Sadly nobody educates the borrowers on these risks and potential credit pitfalls when they are taking out the loans. Sure, you sign promissory notes and know the consequences of default, but I think it would be prudent if they taught things like consolidation, deferment, etc .. up front.

 

I agree with this. I believe there should be a thorough educational process that one must go through before they are allowed to begin using credit products. I.e. Do not even process the consumers application for loans, rents, etc. without it. Really wouldn't be that hard to track. Make that step #1 for creating the initial credit profile with the CRA's that returns a PIN that you use when you apply for credit. I'm sure that won't ever happen, but I like wishful thinking. ;-)

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