topic Re: What is the Credit reporting SOL for Default Student loan (federal) in Student Loans

What is the Credit reporting SOL for Default Student loan (federal)

Student_Loans_Kill — Fri, 16 Mar 2012 16:54:44 GMT

Does anyone know the Answer to how long a Federal Defaulted Student Loan can be reported or stay on your CR after it is paid. No one can seem to answer the actual question here, Mods included. What is the credit reporting time for a former defaulted loan that has been paid by consolidation?

My Research Tells me:

Per the Fair Credit Reporting Act (FCRA), most negative information will stay on your credit report for a minimum of seven years. There are exceptions to these credit reporting time limits for certain types of negative information.

Delinquency information like late payments and collections has a credit reporting time limit of seven years from the date of delinquency.
Student loan defaults, 6 years 9 months
Charge-offs, seven years + 180 days from the date reported to the credit bureau (Student Loans can not be charged off, this doesn't apply)

Re: What is the Credit reporting SOL for Default Student loan (federal)

MarineVietVet — Fri, 16 Mar 2012 19:02:01 GMT

Part of FCRA 605 says:

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 students. See sections 430A(f) and 463(c)(3) of the Higher Education Act of 1965, 20 U.S.C. 1080a(f) and 20 U.S.C. 1087cc(c)(3), respectively.

20 U.S.C. Section 1080A: Reports to credit bureaus and institutions of higher education

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.

And this is about as much as I can tell you.

Re: What is the Credit reporting SOL for Default Student loan (federal)

Student_Loans_Kill — Fri, 16 Mar 2012 19:23:57 GMT

I am not sure how to read this. How is the time lengthened? From what I interpret, they can report a default foreve BUT, if its paid then

7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty (DCS actualy said rule is 6.9) or 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency (that DoFD from initial missed payment) or after defaulting on a loan and subsequently goes into default (7 years from next defualt after making account normal, which is the only extension)

Re: What is the Credit reporting SOL for Default Student loan (federal)

MarineVietVet — Fri, 16 Mar 2012 20:08:03 GMT

I wish I could help you more with this but I've never had a SL and I'd rather remain silent than tell you something incorrect.

SL's are a different creature as you've found out and the rules on them don't seem to match other types of negatives.

Re: What is the Credit reporting SOL for Default Student loan (federal)

Student_Loans_Kill — Sat, 24 Mar 2012 00:39:50 GMT

MarineVietVet wrote:
Part of FCRA 605 says:

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 students. See sections 430A(f) and 463(c)(3) of the Higher Education Act of 1965, 20 U.S.C. 1080a(f) and 20 U.S.C. 1087cc(c)(3), respectively.

20 U.S.C. Section 1080A: Reports to credit bureaus and institutions of higher education

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.

And this is about as much as I can tell you.

20 USC Sec. 1080a

http://uscode.house.gov/uscode-cgi/fastweb.exe?getdoc+uscview+t17t20+3710+20++(family%20educational%20right%20privacy)