Like many people, my college and early post-college years were times when I was financially irresponsible and just plain POOR. I had a student loan in 1992 for $2500. In 1994 it went into default and I repaid it in 1999. (California) I made arrangements to repay through Ed-Fund (they call themselves "A servicer of the California Student Aid Commission". They had a "Rehab" program in which they would remove all the bad marks from your credit report after 12 on-time monthly payments. Of course, I paid too much, too quickly and did not qualify because I didn't owe enough by the time my 12 payments were made. Now the item appears as a "Paid Collection" on my credit report, and is scheduled to continue until 2006! Had I never paid the debt, it seems like it could not appear on my credit report past either 1999 or 2001 depending on how the numbers worked. I certainly appreciate the help in obtaining my education, but I just can't see this as an ethical practice. I have disputed the info with the CRA's, but it has come back as verified and accurate! What can I do? What message does this send to people thinking about paying off their student loans? Don't Pay. BTW - the student loan was sold while in default (several times). It appears on the credit report several times and it looks like I'm thousands of dollars in debt. Ridiculous!
Man, that really sucks. I too am going through the Ed Fund ordeal, but had no idea that if I paid it off early, I would be penalized. Thanks for the heads up. Have you received any documentation reagrding full repayment? If not, ask for one. Then when you receive it, anytime you apply for a loan bring a copy along and explain to the loan officer what has occured. If you want more action call your local television station and talk to the Consumer reporter. They love going after the big story involving injustices. Good luck.
Steve, I have discussed this issue of duplicate listings of Student Loans with K. Feathers at Carreon. She is of the opinion that the practice violates the FCRA, I believe. You may find some profit in discussing this with her, or just dispute the duplicate listings directly with the previous owners of the loan. I have a hunch that it is going to take a great deal of persistence and possibly threatening and cajoling to persuade them to drop the drop listings. I have concluded that I am probably going to hire Carreon to do it for me.
No amount of cajoling will get this off. It does violate the Higher Education Act. You will probably need to join my lawsuit over it. stephen_m_anderson@msn.com
