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2 student loans = 8 Tradelines?!?!?

Discussion in 'Credit Talk' started by Spyke, Mar 17, 2003.

  1. Mar 17, 2003 #1
    Spyke

    Spyke Well-Known Member

    I have 2 student loans that were set up as 2 different account numbers. They are now in default and they now show up as 8 different tradlines. They were through a bank in the beginning and have been paid off and transferred to the IL student assistance comm. They are listed by the bank and ISAC under multi acct numbers with the same amounts due.

    What should I do about this, I was planning on disputing with the cras as not mine and hope that only 2 tradlines come back..

    Any Ideas??
     
  3. Mar 17, 2003 #2
    BAlZebub

    BAlZebub Well-Known Member

    How many checks did they cut for the 2 loans? 1 per semester = 2 per year = 2 per loan? If so, once a student loan hits default, the guarantee agency usually lists it on your credit report as 1 check = 1 loan. If possible, try to enter the federal student loan rehab program... after a year, the 4 held by the guarantee agency will be clean and marked 'pays as agreed'... student loans dont go away and there is no SOL on them.
     
  4. Mar 18, 2003 #3
    rocket1977

    rocket1977 Well-Known Member

    I am not sure how the default factors in, but I have several different student loand with the same servicers and each loan is listed seperately. Also, if in a given year par of your loan is subsidized and part is unsubsidized, it is treated as 2 loans. I think I have about 11 loans being reported.

     
  5. Mar 18, 2003 #4
    fla-tan

    fla-tan Well-Known Member

    As others have already pointed out here, each disbersement is considered a seperate loan. If your school is on a semester system and you get both subsidized and unsubsidized money each semester and you are in school for 4 years, you actually end up with 16 seperate loans. 2X2X4=16. Imagine the person who is on a trimester or quarterly system. Also, while consolidating will not immediately raise your FICO score, it will over time. If you haven't yet consolidated, I would suggest that you look into it. you will also want to watch the 91 day T-Bill and if it looks like it is rising rapidly, then you will want to have everything done soon. There are several good consolidation programs out there. Direct will offer you a .25% discount off your interest rate if you go with automatic payment. There are several consolidation companies that will offer up to 1.25% total discount through their consolidation programs.

    If you need or want further information about any of these programs, you can email me off-boardif you wish.


    fla-tan
     

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