I had an unpaid student loan from 1983. I thought I had paid it in full, however, I began getting collection notices saying that I owed outstanding interest accrual. They are threatening to report me to the three credit bureaus. I intend on paying the remaining 481.00 dollars, however, a new negative credit listing will put a serious dent in my efforts to clean up my credit and become financial sound. Does anyone know the statute of limitations on student loan reporting (as outlined in the FCRA)? (Loan was through the Kentucky Higher Education Association) Thanks for any response.
There is no SOL on student loan reporting, unfortunately. That is a very small amount, and I would get some kind of agreement with the collector that they will not report the debt. I am sure you can keep it off your report if you pay it in full and do it quickly. That is really a bummer! BTW, student loans are some of the hardest items to fight and to get off your report. Bill Clinton cracked down on student loan defaulters. That has made it very hard on us ALL. But I still LOVE BILL. Good LUCk!
Sorry to hear it's with KHEAA. They're *******s who often use a collection agency who promises anything and delivers nothing. Send a cease communication letter to the CA if they have sent it to one. Contact KHEAA directly. Tell them you are only interested in REHABBING the loan. You do NOT want to consolidate it or pay it off WITHOUT complete removal of ANY negative information. If they offer anything else, don't accept. The Higher Education Act requires they allow you to rehab the loan and they delete any negative information about the loan. MAKE sure you get it in writing with KHEAA before you make any payments.
I dont know about all that. I mean the negative isnot on his report yet. And he says that the balance is for interest. IF he rehabs the debt instead of paying it he will be stuck with a negative for the 12 months of rehab. They will put the collection on his credit report while he is repaying it in rehab. My goodness, $481 is not alot of money. He could set up an agreement with them to pay in 3 installments and that they do not report the negative due to their neglience by not informing him of the balance.
