Sorry about that. I'm one too. Just wanted to get your attention with what I think is pretty important information. Please let me know your take on this "Google" thread: http://groups.google.com/groups?q=s...UTF-8&selm=8lou3a$5dp$1@nnrp1.deja.com&rnum=1 I hope I cut and pasted this link properly. If not, just go to http://groups.google.com and search the newsgroup called soc.college.financial-aid for a thread entitled "Student Loan Collection Advice" and read what Ray Woodcock has to say in response to a question about student loans and credit reporting.
Thanks! This has been covered in bits and pieces in many threads with no resolution or consensus of opinion. It would be great if we could keep this thread alive until it (finally) gets figured out. The way student loans are being reported is a major issue for many creditnetters. I believe that neither the guarantee agencies nor the government (DOE/SallieMae) nor the lenders are adhering to a law that specifically addresses this subject, and which appears to favor the student. (Now there's a novel idea). I look forward to your analysis.
what do they mean when they say "not legally enforcable?" Anyone on the board have experience with this?
lyttlemac Sallie Mae is NOT part of the government. They are a private company and even are listed on the NYSE. Only WD Ford/Direct repsesents the government directly, and even that is not 100% correct. Direct Student Loans are issued by the Federal Government and all other Stafford Loans are issued by private lenders. fla-tan
fla-tan I'm a little confused on your point. If Sallie Mae is not a government agency why would a defaulted student loan with them cause you to not be allowed to get an FHA mortgage. Aren't they related in some way since the FHA requirements for a mortgage are that you cannot be in default on any government debt. Is it the fact that if a Sallie Mae loan shows up on a credit report you would not qualify for an FHA loan until it is satisfied, not because it is a student loan but because you can't have anything negative on the report? What if you had a student loan that no longer shows up on the report because of age, would FHA require payment or would they even know about it? I always thought it was the student loan default that would prevent an FHA mortgage. You seem to be saying a Sallie Mae loan is not a government debt so wouldn't preclude you from getting an FHA mortgage. What does FHA mean when they say default on any government debt and what is classified as a student loan under their guidelines? This whole area seems to be confusing for alot of people since it comes up periodically especially on mortgages.
Re: Attn: ALL STUDENT LOAN DEADBEA How many of us are getting dinged on this one? I'm one of those who has a FULLY PAID student loan - but it's being reported as 120+ currently late on my credit report. Turns out that there is special legislation regarding student loans and that they CAN report a loan if not paid more than 7 years. However, that same legislation states that the late (DOA) is 9 months past the date of default. In my case, the agency says I defaulted in 1989! Therefore, since I fully paid it in 1996 - it should have come off then! Yet they are still reporting it. I've filed a lawsuit - but that's been going nowhere right now. I just recently contact David Szwak's office about filing a Federal suit. Mommy2cats
That's for sure, and even the guarantor agencies don't always know how it should work. In my case they claim that it's because CRA's aren't set up to properly report a defaulted student loan. The place the government becomes involved is when you default on that guaranteed student laon - the government becomes the holder and the original lender gets paid in full. Then, at least in my case, the original lender feels obligated to mark your account as a paid charge-off (if they even bother to mark it paid), followed by the guarantor adding a new entry for the same loan as a collection account, and then paid charge-off when the loan gets consolidated away from them. Or, what if you filed bankruptcy? Well, the original lender doesn't want to deal with this, so they assign your loan to the guarantor and mark your report as paid charge-off (they call it a loan default, even though it was their idea to assign). Then, when the BK is dismissed, they repurchase it with a new account number and you get to have TWO loans listed where there was only one before. This of course is just my own experience. I think it happens to many people though, probably all very similar situations with minor variations. I haven't read that link yet, I hope it's enlightening...
For anyone with questions about how the federal government set up the "SallieMae" program, this link is from 20 USC 28 - Higher Education Resources and Student Assistance establishing Student Loan Marketing Association: http://uscode.house.gov/uscode-cgi/...USC):CITE AND (USC w/10 (1087)):CITE
Interesting. I never once thought to dig through student loan law for this, shame on me. I guess I have more reading to do ) The one thing that first strikes me is this: is a guarantor considered currently reporting if they verify an entry? Another thing that comes to mind is an FTC opinion relating to reporting on closed student loans the actual current status of those loans if it has changed since last reported. I'll go find the link and post it. The real thing that REALLY bugs me about student loans that default is that they get reported so many times. Ie, you could have two or three accounts on your report for the exact same loan. Hell, you could have more, I did. There is the original lender, who typically sells the loan to a servicer right after you leave school. Then you have a servicer listing until you default. Then you get to have a listing from the guarantor. If you are able to get it back to a servicer then you will have yet another listing, even if the very same servicer repurchases the loan. I imagine you could default again and repeat the cycle. But the point is you will have FOUR listings all with the same original amount and original opening date. At least one will be rated I0 (the original lender, if they don't service the loan), you will have tons of lates and I9 for the loan before default, a collection listing and ultimately I9 when you get repurcahased or otherwise payoff the guarantor, and then maybe an I1 and no derogitory payments when the original servicer forgives your loan of the remaining $300 you owe. Now, I ask, does it make ANY sense for me to have an I0, I9 and I1 for the EXACT SAME LOAN? Why am am being punished to this day for a loan that the servicer was willing to forgive an outstanding balance on over two years ago? Sorry, I got lost in my own problems there a bit much. I still think, from other posts I have seen, that my situation is not unusual or even all that unique. I very much agree that this is an important topic, and would like to help come up with something more than "you just have to wait until it falls off the reports."
Jambe, if you filed bankruptcy, student loans are dischargeable if there exists undue hardship. In order to gain a discharge, it seems to make a very big difference what part of the country you live in, since different bankruptcy districts interpret "undue" differently. Also, if you filed bk prior to (I think it was October) 1998, and your student loans first became due 7 years or more prior to the date you filed (minus any deferments/forbearances), they are also dischargeable. A lot of attorneys automatically tell you they aren't dischargeable because it's a pain to file suit in order to win the discharge, and most of us bker's wouldn't be able to afford the attorney's fees.
This is an excellent bit of information. I have been putting off getting my two EQ files combined because one of them has a student marked 120+ days past due, 0 balance, and no DOLA. This may provide the ammo to get that removed. Seems to me if they can't report after the loan is no longer enforceable, how the hell can EQUISUX verify it? Gib
Well, not only were the loans not old enough (well, maybe the first one was) but I filed chapter 13, and it was dismissed before confirmation of the plan. In fact, the guarantor held that loan less than two full weeks IIRC.
Letter to the guarantor demanding they stop communication with the CRAs followed up with disputes. Can't say as I understand it enough to claim it will work, but if it's confusing enough for us, it's got be for them too. If you can't dazzle them with brilliance, baffle them bullsh*t. LOL Gib
Re: Attn: ALL STUDENT LOAN DEADBEA mommy2cats,,, I have ALWAYS wanted to find this legislation that says a defualted loan can be reported longer than 7 yrs from DOLA ( which on my reports is the date Sallie Mae charged off and turned the loans over to Dept of Ed) in FDCA 1998,, its says all debts 7 +180 days from deliquency,, at the bottom it says except student loans,, and leg title numbers,, can you tell me where you found this, more than 7 yrs law,, thanks alot
I have to see if I have this clear,, Love to read that FTC opinion,,, Is it correct,, you guys are saying that if a guantor charges off, zero balance and transfers the loan to Dept of ed,, that once you start making payment or the debt is no longer enforceable, that the guantor has to remove their charge off tradeline,,, According to the dept of ed, they told me sallie Mae isnt a guantor,, it was the original loan holder, and that each state was a guantor,, mine being NYS higher education authority,, **** I checked out the link, from google,, the info that that guy is using is revised code of 1999,, it has been revised again in 2001,,, heres my situation,, I have 3 tradelines 1000 a piece charge off transfered,, Sallie Maes,,, default / transer date 1/1997,,,, then right under,, three, same loans US dept of ed tradelines,, when I entered rehab 2/2002,, I read in a tread, try everything to get the loans back with the guarantor from dept of ed CA,, then the 25% Ca costs are gone,,,, I tried,, I was told Sallie MAE isnt the guarantor, and I have to deal w/ CA,, I made CA put it writing that after rehab 12 months, all negs will be deleted, any the 25% CA fees wil be waived, ( to get this I pay alot each month) when I asked the CA,,,,,, " and yah, what about the Sallie Mae tradlines,,,,, this was the answer,, " UMMMMMMMMMMm I guess they will be deleted, after all the loans are going back to them,, Now I believe, yah the loans are going back, as a new loan, the original charge off... Transfered,, 1/1997 will remain,,,,,,, but hold on,,,,,, now I am wonder, after reading the posts,,, and I am questioning something, again is sallie a guarantor? is this leg you guys are talking about, any tradeline of the loan that is reported charge off , zero balance, transfered,,, this tradeline must Disappear when you start paying/satisfy the open loan tradeline, in my case dept of ed?? something strange happen in July,,, ONLY on equifax,, the three charge off zero balance,, 1/1997,, DISAPPEARED,, put gone ( 1 point increase in FICO!!!) I wonder why??? still on experian and TU though,,, I wonder if Dept of ed, notified sallie to take them off,, but its only Equifax,,,,,,, I am not about to ask sallie or CA why there gone??? thanks for the help in my questions,,,, especially charge off tradline removal when in paying lil
