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Debt being paid through insurance??


gypsie
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I have 2 government student loans thru Sallie Mae. I defaulted in 2003, went thru the loan rehab in 2004 with Pioneer, the loans were then taken back by Sallie Mae. For the past 2 years I have been paying my student loans on time (auto debit monthly payments), no missed payments, no lates.

I looked at my tradeline yesterday and the description says Debt being paid through insurance. What does that mean?

The debt is being paid thru my checking account, no insurance involved. Why would they report that?

SHould I dispute? or is it something that's really no big deal?

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I have 2 government student loans thru Sallie Mae. I defaulted in 2003, went thru the loan rehab in 2004 with Pioneer, the loans were then taken back by Sallie Mae. For the past 2 years I have been paying my student loans on time (auto debit monthly payments), no missed payments, no lates.

I looked at my tradeline yesterday and the description says Debt being paid through insurance. What does that mean?

The debt is being paid thru my checking account, no insurance involved. Why would they report that?

SHould I dispute? or is it something that's really no big deal?

Your loans are federally insured. It mean that a claim was filed with the guarantor. These are most likely your original, pre default tradelines. Upon completion of rehab, the guarantors tradeline will reflect positively but the original servicer, in your case Sallie Mae stays the same. There is a 7 year reporting SOL that will apply from the date that the default was paid out on. Disputing it will not change anything.

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