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Student loans & Re-aging

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First of all I love this site! I've learned TONS and appreciate everyone's sharing.

I'm not sure where to begin...

- I Finished college in 1995 and HAVE NOT ever paid on student loans.

- I HAVE NOT paid on credit cards since 1998 (that part I think I understand)

Now I would like credit again.

1) I've read that the reporting period of 7 years begins at the DOLA and have also read it begins when the loan goes into default. How does this pertain to student loans that have deferment and forbearance periods?

2) Also ALL of my student loans say they have been placed for collection in or have been transferred or sold in 99, 00, 02 & 04. Some even say I'm 90 days past due in 05!

They just keep transferring them around and creating new account #'s!!!

How do I establish the original date of the loan to get it off my report? I've got 15 (that's Fifteen, I just counted!) inquiries from "sallie may" and "sm servicing" ALL with different account #'s. I think they are all the same loan they just keep "re-aging" the debt!

Someone please give me some help! I'ts overwhelming and I don't know where to start!!

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  • 2 weeks later...

regarding student loans. they will never come off unless you pay them. they are not considered personal loans, auto loans, cc. they fall into their own separate category and i think the law is basically on their side. what i would do is contact the lien holder and start a payment plan to get back on track with your payments. there is no evading student loans.

i can be totally wrong, if so, please one of the experts shine some light.

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The 7 year reporting period should still apply unless they get judgment etc.

at least that is how I take it.... even the dept of Edu has to follow the FCRA.

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thanks skywarner, you see i learn something everyday. i was under the impression that with student loans they can report however long they liked, even w/a bankruptcy or not. lets say you just stop paying them, are they obligated under the sol also? meaning i live in ny, the sol here is 6 years, after six years if they decided to sue me would i be able to use the sol defense? not that im going to do that, i just consolidated my student bills, but just out of curiousity.


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§ 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c]

(a) Information excluded from consumer reports. Except as authorized under subsection (B) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:

(1) Cases under title 11 [united States Code] or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.

(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.

(3) Paid tax liens which, from date of payment, antedate the report by more than seven years.

(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.(1)

(5) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years.1

#4 references this...

1. The reporting periods have been lengthened for certain adverse information pertaining to U.S. Government insured or guaranteed student loans, or pertaining to national direct student loans. See sections 430A(f) and 463©(3) of the Higher Education Act of 1965, 20 U.S.C. 1080a(f) and 20 U.S.C. 1087cc©(3), respectively.

Title 20 ch18 sub IV part B 1080a "Reports to credit bureaus and institutions of higher education.


Paragraph (f) seems to contradict itself?!? Any thoughts?

(f) Duration of authority

Notwithstanding paragraphs (4) and (6) [1] of subsection (a) of section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c (a)(4), (a)(6)), a consumer reporting agency may make a report containing information received from the Secretary or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower’s defaulted account on a loan guaranteed under this part until—

(1) 7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty;

(2) 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or

(3) in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan entered default such subsequent time.

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  • 1 month later...

Althought I appreciate the feedback, I guess the answer is...YES, stay in Germany forever. Even though the mark would eventually go off my credit, they could still come after me for my student loans forever. I was supposed to start paying them back in 2001. Im not so much concerned with my credit report. I know the mark will be removed. I am more worried about moving back, finding a job, getting comfortable, and then out of nowhere in comes the Govt. suing me and garnishing my meager wages. So I guess Germany is my new home now.

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Dude it's not as bad as you might think... Even if they do garnish your wages they are limited to how much they can garnish! I'm not sure of the amount but it's a % between 10-20% thats the MOST they can take and I think they can also confiscate any refunds you might get but thats easy to get around just don't set yourself up to get any refunds.

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