First, I bought a house, got 7.65% 100% financing, after LOTS of work on the previously below 500 score. I was over 620 on two, now back to 580!!!!!!!!!!!!!!Dang. I need to refiance to drop my PMI ($300/mo) before I change careers. . .here is my question. I have 5 dispursements of student loans. I graduated in Dec 1996. 6 months of deferral puts first payment due July 1997. I never made a payment and defaulted. Sallie Mae/Student Market show account opened 3/1997, last reported 6/1997, but shows first 90 days past due in 10/1997 (5 negative items). These were all transferred to USA Funds (the guarentor) for another 5 items starting 3/1998. Then they were consolidated in 1999, I have been current since 2001. (1 item). That gives me 11 negative items for my student loans. I previously had 19 negatives (and no positives), now have 10 positives and these 11 negatives. HELP. I am in my 7 year window. My questions are: 1. When does my seven year clock end? July 2004? 2. I have read (my cannot find a clear answer) that the 7 years may be different for student loans. Any comments? 3. Will the 7 year clock be for just the first 5 items? Or can it apply to the second 5 items? (I want to leave the last one because it has 3 years of on-time payments). 4. I have tried DILIGENTLY to get these removed before--has not worked, so I just have to wait for clock to run out. I just need some feedback on how I can push the envelope on that. THANKS!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Oregongirl
according to what I've read - government backed student loans never go away and are not dischargeable in BK.
If the loans are written off, charged-off, or sold to a collection agency, they will be re-reported, which will restart the clock.
Statute of Limitations By virtue of section 484A(a) of the Higher Education Act, statute of limitations of no kind now limits ED's or the guaranty agency's ability to file suit, enforce judgments, initiate offsets, or other actions, to collect a defaulted student loan. Regardless of the age of the debt, statutes of limitation are no longer valid defenses against repayment of a student loan.
http://www.ed.gov/offices/OSFAP/DCS/repaying.html My credit record is tarnished because of my defaulted student loan. Is there anything that I can do to improve my credit record?" Failure to repay your defaulted student loan can be damaging to your credit record. In fact, consumer reporting agencies may continue to report an account for 7 years from the opening date. However, there are several things that you can do to at least partially, and in some cases, fully restore your credit record. Your options for bettering your credit report include: repay or satisfy the loan in full; consolidate your loan through the FFEL loan consolidation program or the William D. Ford Direct Loan Program; or rehabilitate your loan through our loan rehabilitation program. If you want all negative credit reports made by the Department to your credit record, you must successfully complete our loan rehabilitation program.
Loan Rehabilitation You may also be interested in participating in the loan rehabilitation program. After you have made 12 consecutive monthly payments that are both reasonable and affordable, we will agree to reinsure the loan. You will then be eligible to have the loan purchased by a lending institution. Once a loan is rehabilitated, it will be taken out of default, the credit bureau reports made by the servicing agency will be deleted, you will be able to repay the loan over a 9 year period, and you will again be eligible for additional Title IV student financial aid funds. Please call us 1-800-621-3115 for additional information on the loan rehabilitation program.
i put this answer in the other copy of this thread. the 7 year clock is figured just like b-days. the year in question is year 0, and the 7th b-day would be the obsoletion date. So July 2004, SHOULD be the obsoletion date, but that allows the entry to remain through the end of July 2004. CRA's don't do days of the month. If the second set of negatives is showing a different open & activity date. You may be able to dispute those as being incorrect dates, and duplicates of the other trade lines. You'll want to use Johnson v. MBNA to demand that the data furnishers actually obtain the hard copies of all of the paperwork to conclusively verify the account opening & payment history dates. The key part of Johnson v. MBNA is that if they can not conclusively verify the information, they MUST report that they can not conclusively verify, which requires that the CRA delete the trade line. additional question... Does the 11th trade line have any negative information in it? If it does, you may be able to try to ask for the deletion of the negative information as a gesture of goodwill for the three years of on-time payments.
Jam, Thanks, I think you understood the post. The 11th does have negatives, but I have been current for 3 years. I have already requested goodwill over the phone and in writing. They were very nice, but turned me down. I do not dispute the debt (which I am paying under tradeline 11), I want to pay it. My struggle is with the 10 negative tradelines from the past--they are 'sold', 'paid', 'transferred', etc.. 2 for each dispursement (I only had 4 loans). My conversation with Sallie Mae was like the Abbott and Costello 'Who's on First' about dispursement vs loans. I have done validation & nutcase letters, they keep sending the correct documentation back. I have disputed to CRA and that has resulted in 1 dropping through the cracks. Any other suggestions????(And I cannot consolidate because it has been done already).
Butch, I don't think I will be eligible for rehab, but I'm going to check. I had not seen that link before. I pretty much ignored everything for 4 years, so now I am cleaning up the mess. Thanks for the advice. Oregongirl 3/04 Exp-577 TU-598 Eq-590
OK--here is my tactic if they say I am not eligible for rehab. I have disputed/validated they have come back with proper documentation and told the CRA that it is accurate. SO, the CRA is reporting the last activity was on 6/97--and it was 120 days late. Therefore it was originally delinquent in 1/97, 30 days after I graduated (because defaulted loans are all due immediately and you lose all grace periods/forebearance). So by the information on my credit report WHICH the student loan folks have validated to me and the CRA, it is seven years past the original delinquency. My letter below. Comments? Thoughts? Think it will work? Equifax Information Services, LLC P.O. Box 740256 Atlanta, GA 30374-0256 March 17, 2004 Dear Sir/Madame: This letter is a formal request to remove tradelines (as listed below) on my credit report as they are past the seven year deadline of delinquency. SLMA LSCK. There are four tradelines that must be deleted. The following information is from my credit report provided by you. The last activity was on 6/97 at that time the account was 120 days past due. THEREFORE, based upon the information provided by my creditor (which they have verified to you in the last year), this derogatory tradeline must be removed. The original delinquency was in 1/97 according to my report, and we are currently 2 months past the seven year timeline. I am distressed that you have included the below information in my credit profile and have failed to maintain reasonable procedures in your operations to assure maximum possible accuracy in the credit reports you publish and continue to tarnish my credit report with these items that by law can no longer be listed on my report. Credit reporting laws ensure that bureaus report only 100% accurate credit information. Every step must be taken to assure the information reported is completely accurate and correct. Please delete this misleading information, and supply a corrected credit profile to all creditors who have received a copy within the last 6 months, or the last 2 years for employment purposes. Under federal law, you have thirty (30) days to complete your re-investigation. Be advised that the description of the procedure used to determine the accuracy and completeness of the information is hereby requested as well, to be provided within 15 days of the completion of your re-investigation. Sincerely,
