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Perkins loan GA legal?


credithopeful
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Hello,

I am desperately trying to ask my school to make a goodwill adjustment on my credit report for 2 late payments on my Perkins loan.

I sent an email and said that the Fair Credit Reporting Act does not demand that all accounts be reported, only that any account that is reported to be reported accurately. Therefore, The school has the legal discretion and permission to remove any account it chooses from the credit report.

He responds , "The federal guidelines for Perkins Loans require that all delinquencies be reported to the credit bureaus, so we are not permitted to exclude that category of loans.* Furthermore, I cannot tell ECSI (third party servicer) to change accurately reported information without violating federal regulations.

Is this true?

Also, he informed me that can have a "loan rehab" and if I make 9 timely payments, then the adverse claim can be removed... But doesnt that mean I first have to default?? Is it worth it? I'm trying to tidy up my credit report to get a mortgage, but this alternative sounds like it'll do more damage.

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It is my understanding that a good standing student loan must be reported with each payment, meaning that if a payment is late it must be reported as such which would make it impossible to change that status on your credit report.

Additionally, the Federal Rehabilitation Program is only available to defaulted loans, so you are correct in that if it is not defaulted it does not qualify. Do not let it default if at all possible. There is about a 20% collection fee attached to the balance unless you pay the balance in full within 30-60 days, depending on the loan holder.

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