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Defaulted student loan question

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Goblin
Regular Contributor

Defaulted student loan question

My friend constantly catches me reading myfico forums and makes fun of me all the time, but she finally gave in and asked me to help her fix her credit.  So I agreed.

 

I had her check her free annual credit report and I started to analyze.  She has a decent mix of credit: student loan, 1 BofA credit card, and a paid auto loan. I suggested she should app for another card or two, but after we fix her issues.  She's never been late on the auto loan or the credit card...it's all about the school loan which I don't know much about.  

 

There are a total of 7 school loan accounts.

 

5 of the accounts look like they're the same account number, but the loan amounts are different. Is this a normal practice to seperate each loan out instead of bundling them all together?

 

Another issue is that she missed the deferment date, so all 5 loans were sent to what looks like an school loan collection agency.  She then consolidated the collection account under Great Lakes which she is current.

 

So there are 5 derogs, 1 collection, and 1 current consolidated loan.

 

My first instinct was to goodwill the collection and the original loan accounts.  But I don't understand, are those 5 items counted as 5 seperate derogs when they're all actually the same account?   It just bugs me because it looks so messy! 

Starting Score: Ex: 495 Eq: 492 Tu: 497
Current Score: Ex: 708 Eq: 716 Tu: 710

Message 1 of 8
7 REPLIES 7
Goblin
Regular Contributor

Re: Defaulted student loan question

anyone?

Starting Score: Ex: 495 Eq: 492 Tu: 497
Current Score: Ex: 708 Eq: 716 Tu: 710

Message 2 of 8
Momof5
Frequent Contributor

Re: Defaulted student loan question

This is why you have to be careful of student loans.  Each semester you take out a new loan (single promissory note though) so you get 2 per year!  I told my children to immediately consolidate upon graduation.  In doing so, you have 1 loan and 1 payment.  If, sadly, you ever go late, you have *1* derog not *8*!  Your friend could try to GW with original SL company.

Starting Score: 472
Current Score: EQ:703 TU: 729 EX:737
Goal Score: 750


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Message 3 of 8
Anonymous
Not applicable

Re: Defaulted student loan question

That is greaqt information Momof5. I actually didn't understand why my bf had so many lates registered if it was just ONE student loan. Consolidating it now wouldn't make any difference right??

Message 4 of 8
Momof5
Frequent Contributor

Re: Defaulted student loan question

Unlikely unless a humble letter is received at the original lender's executive office and they are in a generous mood and change the reporting.

Starting Score: 472
Current Score: EQ:703 TU: 729 EX:737
Goal Score: 750


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Message 5 of 8
Goblin
Regular Contributor

Re: Defaulted student loan question

I agree, that's a great tip for a student trying to be proactive in their credit journey.

 

We're going to goodwill the loan originator.  Luckily the collection agency is no longer operating, so hopefully it will be deleted via validation route. 

 

Starting Score: Ex: 495 Eq: 492 Tu: 497
Current Score: Ex: 708 Eq: 716 Tu: 710

Message 6 of 8
Anonymous
Not applicable

Re: Defaulted student loan question


@Goblin wrote:

 

 

 Luckily the collection agency is no longer operating, so hopefully it will be deleted via validation route. 

 



Not sure how validation would result in deletion.... if there is no one 'there' to validate it, then there is no one 'there' to delete it either. You would need to dispute with the CRA's to get rid of this. 

Message 7 of 8
lavencedora
Frequent Contributor

Re: Defaulted student loan question

Hi Goblin -- I was going to say the same thing: those were definitely 5 different loans. Often times your account number is your social security # or some derivative thereof, so they'll *look* like the same account number for multiple loans. I had a similar issue where I thought I had one loan -- same company, same acct # (my social), but it was TWO. I put one account into deferment, not realizing there was a seperate account that DIDN'T get deferred. Bad stuff. Yes, goodwill original lender. If CA is no longer around, contact CRAs and say you were trying to reach CA with a concern about their reporting, but can't reach them. Chances are, they CRA will delete (I got one deleted this way). Glad your friend is on track with consolidation now! You are such a good friend to be helping like this. Yay, you!!!


Starting Score: TU 490 on 11/2012
Current Score:6/16/15:EQ 714, EX 704, TU 702 (all from myFICO)
New Goal Score: 740+ for all three
Message 8 of 8
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