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CRA reporting Student Loans


ctmgr
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I need your advice.

I had a student Loan with GA Higher Education Assistance. On my CR, it shows that it was opened 7/1/2002 for 1 month.

Afterward, they sold it to a horrible collection agency and in the end (2004),I took a loan with Direct Loans to pay off the former loan and have no lates on that loan.

The original loan is showing paid as of 2004 (when I took out the new loan), but is also showing key derrogs from 2002 until then.

Also, the same loan is being reported 3 times on my credit report.

Do I validate the debt as with any other creditor? Is there anything else i can do about this?

One other question... I went to the NSLDS site and the oustanding principle is the balance of my Direct Loan account (which again I have been faithfully paying with no lates since Oct 2004). Is there anything I can do to have the tradelines from the former accounts removed?

Thanks for your help

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Upon further reading, this is what I have surmised:

1. Student Loan Creditors, unlike other creditors, keep very accurate records and maintain strict rules about accurate reporting. In effect, begging and pleading and good will letters won't really help to remove tradelines and could worsen the situation if you have other lates not being reported.

2. It is better to rehab a loan than to consolidate. Rehabbing is reported to CRAs differently.

3. If you take out a new loan for each year that you are in school, these are reported as different loans even if you are only making one payment during payback. Also, if the loan is turned over to collection, it is reported as different collections.

4. If you have trouble paying back the loans, there are numerous opportunities to work with the lender through forebearance and deferring payments, but once the loan has been defaulted the you may have your tax returns redirected to pay loans, your paychecks garnished and there is no SOL on collecting on Student Loans.

So, the answer to my original question, is yes there is something I can do. Wait until 7/2009 when the derrogs are no longer reported.

Do I have it right?:confused:

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I need your advice.

I had a student Loan with GA Higher Education Assistance. On my CR, it shows that it was opened 7/1/2002 for 1 month.

You had a defaulted student loan. GA Higher ED paid your default claim.

Afterward, they sold it to a horrible collection agency and in the end (2004),I took a loan with Direct Loans to pay off the former loan and have no lates on that loan.

They did not sell it to a CA...it was assigned to a CA. Government loans are never sold to CA's.

The original loan is showing paid as of 2004 (when I took out the new loan), but is also showing key derrogs from 2002 until then.

Also, the same loan is being reported 3 times on my credit report.

Do I validate the debt as with any other creditor? Is there anything else i can do about this?

One other question... I went to the NSLDS site and the oustanding principle is the balance of my Direct Loan account (which again I have been faithfully paying with no lates since Oct 2004). Is there anything I can do to have the tradelines from the former accounts removed?

Nope.

Thanks for your help

The credit report is correct. You will have the origninal lender or servicer that defualted you. It will have zero balance and government claim/default as a notation. Then you will have the guarantor GA. They paid the claim and since the loan is defaulted, payments cannot be reported as current. Their balance should be zero with same default/government claims notations as above. Direct Loans is your current lender.

There is nothing you can do about this. Each have their own legal right to report...this is the consequences of defaulting on a student loan. Time will age them off

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