I've been offer a settlement of @70% of my student loan debt if I make a lump sum payment about 8000$. That sounds good to me. But the credit agenicies say the Govt will report the payment to all 3 credit bureaus . Thats bad. So here is my question. The loans are more than 10 years old . They do not show up on my cr. If i take the lump sum payment, and the payment is reported to the credit bureas, can I have them remove as more than 7 years old- the SOL thing?
I see where the government is cracking down on default student loans.If it never has been reported before and you pay and it reports now, I would think that the 7-year clock would start from the time you paid it off.unless you can come to an agreement with lender"not to report".Since it has been 10 years and it hasn't had any effect on your credit power or score,what would happen if you continue to ignore it? After all,its been 10 years.
River: It would seem so, however, check out the FTC footnote to §605(a)(4&5) of the amended FCRA: The reporting periods have been lengthened for certain adverse information pertaining to U.S. Goverment insured or guaranteed student loans, or pertaining to national direct student loans. See sections 430A(f) and 463(c)(3) of the Higher Education Act of 1965, 20 U.S.C. 1080a(f) and 20 U.S.C. 1087cc(c)(3), respectively. Seven (7) years no longer applies, which Iâ??m sure someone like Roni could verifyâ?¦ Sheâ??s a whiz at student loan issues.
Student loans are excluded from the 7 year SOL. If your student loans are not being reported or not anymore, I would sit tight and do nothing. If you pay, this will be on your record for a long time. If the record does surface even though you did nothing, then you might want to consider rehabing the loan (if possible) or the lump sum arrangement. You have to be careful with student loans. It is if the govt. can do anything to collect the debt and ruin your record.
river, Student loans NEVER go away. They will take your income tax refund (if you get one) and it will blemish your credit report forever. My suggestion to the original poster is to call 1-800-4FEDAID and see if they can't rehabilitate the loan. Rehabilitation is a much better option on a defaulted student loan than paying a settlement. Roni has rehabilitation experience, Maybe she can comment on this. I consolidated my defaulted student loans before I knew about rehabilitation and the defaulted status is still on my CR, 8 years later. Good luck!
Ugh. The one thing I did right in my credit life was to pay my student loans. Every time the subject comes up here I am just so glad that there is at least ONE credit problem I sidestepped.
I want to repay the loan. I'm not interested in avoiding paying, I just want to pay in the way that is the best for my credit and cost the least amount of money. Does anyone know if I can rehabilitate the settlement amount?
