Student Loans

Discussion in 'Credit Talk' started by EdG, Aug 9, 2001.

  1. EdG

    EdG Well-Known Member

    Any help or insight would be appreciated.

    I recently consolidated 7 student loans that were in default and with various collection agencies. After paying off the loans in full (through Gov't consolidation) I disputed their status with all three CRA's.

    Equifax- Investigated all 7 loans and ended up removing them from my credit report.

    TU- updated the status of 4 loans(paid collection accts) and deleted the other 3.

    Ex- Updated all 7 loans as paid collection accounts with zero balance.

    Why is their such a difference between the way the 3 CRA's report things? Was I just lucky with Equifax? How can I get TU & EX to delete the same items?

  2. Terry

    Terry Well-Known Member

    Trans Union and Experian will blatantly lie to you. Ask them for proceedures used to verify the tradelines. If Trans Union lied to you, they will remove the tradelines. Experian will take a little work. You might have to threaten litigation.
  3. roni

    roni Well-Known Member

    What Terry recommended may work. But I would also just try to dispute again in 3-4 months. I hardly have the time to send the chain of letters and threaten the credit bureaus. I had almost all my defaults removed by disputing but it took almost 9-10 months.
  4. EdG

    EdG Well-Known Member

    Thanks for the information roni and Terry.

    Would their be any advantage in going back to the original creditors and asking them to report to the CRA's that the loan was never late and not a collection account. I'm not sure that they would do this. Has anyone had any success removing bad zero balance student loans from their credit report?

  5. roni

    roni Well-Known Member

    I had the type of problem with three student loans. I made the mistake of listening to the collections person when they called saying either payup or they would garnish wages because Student Loans do not go away.

    I accepted their plan of making three ontime payments before the loans were consolidated into one new loan. She told me that after 12 payments all negative information would be deleted. I made the 12 payments, but was told that it was an either or situation. If I consolidated the loans, I could not rehab (have the negative info removed) them.

    I did a little research and actually that is not correct! You can challenge Student Loans with the other FCRA options, but you will also want to attack them using the HIGHER EDUCATION ACT of 1968 and ammended in 1998. Specifically, you're using section 674.39.

    I contacted the banks directly and explained the situation. One said that they were sorry for the problem and would delete the account when I challenged it. The other said they would do nothing. When I challenged with Experian, the six accounts dropped off. When I challenged with Equifax, the six accounts dropped off. When I challenged with Trans Union, the dorks dropped two of the three accounts at each bank, but updated the third. I've challlenged them again, but we're in the middle of 30 days now.

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