The U.S. Department of Education's computer sends tapes to national credit reporting agencies on a monthly basis. Account balances are up-dated, and those accounts that have been paid in full or settled in full are reported as a â??PAID COLLECTION ACCOUNTâ?. The Department will not remove an account from credit bureau reporting unless the account was reported in error. Collectors must not indicate to borrowers that the information will be deleted or revised. Accounts that are paid through loan consolidation will also be reported as "paid collection accounts". Accounts paid through FFEL rehabilitation will be removed from credit bureau reporting. Borrowers who have a disagreement with the information that is shown on their credit report should file a dispute with the credit-reporting agency that is showing the incorrect information. If necessary, the credit reporting agency will contact the ED for updated information. ED currently reports to TransUnion, Equifax and Experian (formerly TRW).
