My wife's student loan was sold several months ago. But on her EQ report it reports both the company that bought the loan and the company that sold the loan. The problem is there are three 90+ days past due on the old loan co., it also says account transferred or sold. 1. Can both companies report against this one account? 2. Should I dispute with EQ or should I dispute with old loan co.? 3. Will this 90 days past due drop off with age like 2 yrs.? 4. Any suggestions will be much appreciated.
I don't have an answer to your questions, but it does seem that student loans have reporting rules of their own. I have several different people on EX and TU reporting for the same student loans. Any student loan experts out there? Ed
1. Can both companies report against this one account? Yes. A new creditor can report an account that was bought from an old creditor. The old creditor can no longer continue updating on the account past the date that it was actually sold. In terms of reporting against the account - was your wife late on the student loan when it was held by the old loan company and late again when it was held by the new loan company? If so, then both companies can report that. If not (i.e. the new company is reporting lates carried over from the old company), then both companies cannot legally do that and the lates should be disputed with the new company. 2. Should I dispute with EQ or should I dispute with old loan co.? If the information is accurate, I don't advocate disputing. If it is inaccurate - I'd dispute with whichever loan company is reporting the wrong information. If these loans are in default - I would rehabilitate them, and get them to delete the late entries from the credit report. Normally, she would have to have been 120+ days late to enter "default" status. But some loan servicers have been known to default loans earlier than that period. Call 1-800-4FEDAID to find out the default status of her loan. 3. Will this 90 days past due drop off with age like 2 yrs.? If the loan is in default - the entry will stay on indefinitely until the loan is paid or transferred. After that, the loan will stay for 7 years (unless you rehabilitate, which will delete the loan entirely). If the loan is not in default, the late pay stays on for 7 years.
1. Can both companies report against this one account? Yes they can. 2. Should I dispute with EQ or should I dispute with old loan co.? Absolutely. I would dispute all the tradelines with late notations. If they can't verify it they must remove it. 3. Will this 90 days past due drop off with age like 2 yrs.? No it won't. It will stay 7 years from the date reported late. Just like any other debt. Dispute the tradelines with the bureaus. Your success depends on the age of the 90 day late. If it was recent it will be harder to remove. If it was awhile ago, you stand a better chance in have it removed. 4. Any suggestions will be much appreciated. The difference between student loans and other debt is the sol. They can come after you post 7 year sol. I hope this helps you.
Thanks everyone!! unfortunately they are reporting accurately, the past dues are on the old loan co. only. They are from 1998 before we married my wife had to have surgery no income for several months. We are over one year ahead of payments now but they don't report that. Anyone ever have any luck having your payment applied toward principle only? I mail her checks with letters to home office address stating apply towards principle only and endorse the checks towards principle only. But they still post toward next available month.
There are two major types of student loans. Goverment backed and personal loans. The personal loans work just like any other credit tradeline and are subject to the FCRA and FDCPA. The goverment backed loans are a beast. They NEVER go away even in BK. They can be subject to the same FCRA and FDCPA execpt for time lines but they are also subject to the Higher Education Act (www.ed.gov) which states if the loans are defaulted, they can be rehabbed. Put simply, if you make 12 on time payments, the creditor must remove/delete any negative comments in your credit report!
Shawn: Also try a search here for Higher Education Act. I posted all sorts of information about student loans about 6 weeks ago.
Sweet! I can't believe I missed that. I got a lot of my student loan stuff fixed, but there are a few that are still there I would love to get rid of that...one more little nick at those suckers... Shawn
I have another student loan question. I remember seeing a thread a few months ago on this. Can a person consolidate their loans and then rehab them. For example with a William D. Ford loan. Make 12 payments the have the negative information removed by the previous loan holders. Has anyone done this? What would prevent someone form doing this? Thanks in advance, Ed
Can a person consolidate their loans and then rehab them. For example with a William D. Ford loan. Make 12 payments the have the negative information removed by the previous loan holders. Has anyone done this? What would prevent someone form doing this? It depends on the status of the loan at the time of consolidation. If several disbursements (loans) were consolidated in good standing, and then defaulted upon - then, yes, that consolidated loan can be rehabilitated. But if a loan was in default and then brought out of default through a consolidation - then that loan cannot be rehabilitated. The whole point of rehabilitation is to bring the loan out of default and it can't do that if the loan was brought out of default with a consolidation. Once a loan is in default - a person can rehabilitate first and then consolidate. A person cannot consolidate and then rehabilitate.
Erica & Marci, Thanks for the response. I agree with what you said, but where in the Higher Education Act does it specify that you can't rehab old loans after consolidation. http://www.ed.gov/legislation/HEA/ Is it law or just policy? Ed
ERICA says no, but I did it. The lenders will tell you that it is an either or situation. You can always consolidate AFTER you rehabbed, but they will tell you if you consolidate before then you can not rehab. But the truth is they don't have a leg to stand on... nowhere in the Higher Education Act does it say that you can not consolidate and rehab. The benefit of consolidating is to get immediate access to additional guaranteed student loan funds. For anyone out of school, it makes zero sense to consolidate first. There is no benefit, but this is what you will hear by the collectors.... "We'll consolidate the loan after 90 days and 3 on time payments" and we'll even wipe your record clean after one year. They make it sound like it's an option they give you when IT'S THE LAW STUPID! Getting the lendor to honor the verbal agreement can take some work, but I have done it! It can be done!
You are right, that is what William D Ford told me. They said either-or, not both. Maybe when this goes back into repayment, I can use that to get rid of the negs on my report! I see the light!
Nice, well I have 2 more months of $400 on time payments to make. I'll let you know if the original creditor will delete the old entries. My university said they would we'll see about ASA though. Thanks, Ed
Bkev, Interesting reply! Wow. You're right. The reason I did not immediately respond to Eddie's question re the HEA is that I could not remember reading that in there but was going on what ASA communicated to me. That is important to know, if a person is looking to re-enter school asap. Thanks. I learned something new today.
Thanks for the compliment. I'm always happy to share from my experience.... and it's worth every penny you paid for it! LOL!
