Can student loans be reported longer than 7 years. I defaulted on mine in 1992 & they dropped off my credit report. However, I had a twinge of conscience and contacted NCO to try to make arrangements this February. I paid them $200 & now I'm wondering if the clock is reset & they will be able to report for 7 more years. They've been so harrassing that I don't even want to pay them what I originally wanted to. I have a credit report from 1998 that lists the student loans (before they were transferred to NCO). It lists the DLA as 2/92 with the entries added on 9/98. Upon reading the FCRA, it looks like items added after 1996 cannot have their clock reset - but it also talks about another document that extends the time for student loans. I don't know how to find this. Any advice will be appreciated.
Guaranteed student loans are a special case and they can harrass you to the grave. (Don't screw with Uncle Sam) There is basically is no statue of limitations on them and the guarantor can take 'special' collection actions against you including wage garnishment without a judicial judgement. They can even intercept your tax refund if they want to. My advice: Pay the damn things off and get the signed off promissary notes back and keep them forever.
I love NCO! Funny I posted this last night, because today I got a letter from NCO saying that the account had been reported to a collection agency. I'm going to pay this off, but what can I do to make sure it comes off my credit report after I pay? After all, it already ruined my report for 7 years. Am I just stuck with this on my credit report?
RE: I love NCO! First, verify that they do indeed show up on your credit report. If they don't show up, then you have a little more playing room, and just pay it off as you can. If they do, the ball is in your court. You could offer to settle and make part of the deal be the removal of the item from all three CRAs. Make sure you get this in writing before you pay them if you do this. Good luck.
RE: I love NCO! Be carefull. It seems Equifax thinks it necessary to report people as having a zero balance but 120+ days past due current status if you repay a formerly defaulted student loan. But you should know it is illegal for a student loan servicer to report derogatory credit to the bureaus about you after the debt is no longer enforceable or a repayment arrangement has been entered into acceptable to the guarantor. So, watch what happens carefully after you pay the loan off and be ready to have to go to court to defend yourself. I suggest doing everything certified mail since even faxes can be questioned.
