Your One Stop Resource for Saving Money.
Information on student loans on credit report - The Bills.com Blog
Bills.com Blog > Debthelp Questions > Student Loans on Credit Report
Information on student loans on credit report
Tuesday, Nov 20, 2007
Question: I have a student loan charge-off account that is about to fall off this June! However, there is a collection account that also reports on my credit report. When the original account falls off, will the other account fall off too?
Answer: Generally speaking, student loans will fall off your credit report seven years after the date of default. Both the original account listing and the collection listing should reflect the same date of default, since the two listings are actually reporting information on the same debt. Therefore, you should expect to see both accounts reporting the same payment history to all three major credit bureaus (Experian, Equifax, and TransUnion). You should review your credit reports to verify that the date of last payment and date of default appearing on the two listings are the same on all three reports. You can obtain a free copy of your credit report from each credit bureau once every twelve months by visiting www.annualcreditreport.com. You can also purchase a copy of your credit report directly from the credit bureaus anytime if you would like to review your report more often. Assuming that the dates of default appearing on the original listing
and the collection listing are the same, both listings should fall off your credit report at the same time.
You should be aware that this student loan falling off your credit report will not make the debt go away; the Department of Education can continue its collection efforts on any federally insured loan until the loan is paid off. You may want to consider rehabilitating your loan, which should allow you to resume payments on the loan and have the default removed from your credit report. The Department of Education may also offer other options to help you repay your loan at a rate you can afford; I encourage you to contact the Department of Education's collections office to discuss the repayment options available to you. For additional information
You should be aware that this student loan falling off your credit report will not make the debt go away; the Department of Education can continue its collection efforts on any federally insured loan until the loan is paid off. You may want to consider rehabilitating your loan, which should allow you to resume payments on the loan and have the default removed from your credit report. The Department of Education may also offer other options to help you repay your loan at a rate you can afford; I encourage you to contact the Department of Education's collections office to discuss the repayment options available to you. For additional information
on how to deal with a defaulted student loan, I encourage you to visit the DoE's Web site at www.ed.gov.
If you fail to resolve your student loan obligations, the DoE may begin garnishing your wages, levying your bank accounts, or attaching other property. If you cannot afford to make payments, or do not wish to do so, you may want to consult with an attorney in your area to discuss the risks associated with this unpaid student loan to help you determine if rehabilitating the loan is something that you should consider.
To learn more about student loans, I invite you to visit the Bills.com Student Loan Information page.
I wish you the best of luck in resolving this obligation, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
If you fail to resolve your student loan obligations, the DoE may begin garnishing your wages, levying your bank accounts, or attaching other property. If you cannot afford to make payments, or do not wish to do so, you may want to consult with an attorney in your area to discuss the risks associated with this unpaid student loan to help you determine if rehabilitating the loan is something that you should consider.
To learn more about student loans, I invite you to visit the Bills.com Student Loan Information page.
I wish you the best of luck in resolving this obligation, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
User Comments
Submit questions/comments about this post:
Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
Information provided by Bills.com is for general informational purposes only and is not be
construed as legal, financial, bankruptcy, tax or other professional advice. Should you
require more detailed information or specific professional advice tailored to your situation you
should consult an attorney, financial planner or tax advisor.
While we believe all information provided by Bills.com to be accurate as of the date of its posting, we cannot ensure its accuracy. Use of this site and any information contained on or provided through this site is provided without any representations, warranties or guarantees. Bills.com is not responsible or liable for any decisions or actions anyone may take based on the information provided. Please see Terms of Use.
While we believe all information provided by Bills.com to be accurate as of the date of its posting, we cannot ensure its accuracy. Use of this site and any information contained on or provided through this site is provided without any representations, warranties or guarantees. Bills.com is not responsible or liable for any decisions or actions anyone may take based on the information provided. Please see Terms of Use.
© 2006 - 2009Bills.com LLC. All Rights Reserved.
1. Posted by Michelle Nieves on Tuesday 21st April 2009 08:57
I have heard the the 7 year rule for delinquent items on your credit report does not apply to student loans. Is this true? A friend of mine has delinquent loans from TCI ... would you know anything about the validity of this?
2. Posted by Mike on Tuesday 21st April 2009 16:09
The bad news: Due to changes in federal laws in 1998 and 2005, collection on student loans now have no statute of limitation and - with very limited exceptions - can no longer be erased though bankruptcy. (For details on the exceptions, visit the Department of Education’s website. The good news: There are many, often flexible, options available for student loan resolution. Depending on the specifics of the situation, student loan borrowers may be eligible for programs that offer extended repayment periods, modifications that are income-sensitive (salary based), or graduated (starting small and rise over time). Some plans also offer possibility of "rehabilitating" a defaulted loan, so that some or all negative information about the loan is expunged from the borrower's credit report if certain criteria are met. A good place to start your search is with the US Department of Education. You can find information on addressing your student loan debt on their website at: www.ed.gov. Options for addressing your student loan debt can also be found at Bills.com. Visit http://www.bills.com/student-loans/ where you will find a wealth of information and links to sites covering a wide-range of student loan related issues, as well as our Saving Center tool where you can apply online to be matched with a Bills.com pre-approved provider specializing in student loan repayment solutions.
3. Posted by Jill on Tuesday 13th October 2009 09:40
what if the student loan payments were garnished from my wages and the loan is now paid in full. It is still appearing on my credit report as transferred to government. When will this show as paid?
4. Posted by Bill on Tuesday 13th October 2009 13:26
You do not mention when the debt was paid. Sixty to 90 days is common for a credit report to reflect updated information. If it has been longer than 90 days, dispute the listing. See the Bills.com debt self-help center for a sample dispute listing letter.
5. Posted by Jill on Tuesday 13th October 2009 13:51
the debt has been paid since Jan 2009. Thanks for the info and I will definitely be disputing this.