Dept of Ed Student loans

[Anonymous]

Hello all!!,
So I'm in the process of rebuilding my credit. Scores started at about 505 on all 3 CB's. I have a student loan that went into default, I payed the loan off in full although it's still being reported on all 3 CB's as "sent to collections-more than 120 days past due" with a amount of 2,722.22. Will a dispute letter solve this and do you guys think there's a good chance it will get deleted?

Thanks for all your help in advance.

[Anonymous]

It likely won't get deleted.  You may get the balance dropped to $0 and have it marked closed.  Just because it's paid in full doesn't mean that it's wasn't sent to collections or wasn't 120 days past due.

[Anonymous]

See that's the thing, there's an entirely different listing on the report from the Dept of education listing the account as paid. Should there be 2 separate listings?

[Anonymous]

If it went to collections, yes.  There's the original defaulted TL, and then the collection.  This is why it's imperitive to pay things before the go to collecitons, or get the OC to recind the collection and pay them directly.  Collections = at least two negative TLs for the same account. 

[Skye12329]

If you paid the original account holder of your loan in full. They should contact the collection agency or you can prove that you paid it in full to the collection agency and have the collection removed then. The 120 days late would stay on the account. Because if the original account is PIF there should be no reason to need to pay it again. Unless the collection says paid, then it would stay.  

[Anonymous]

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@Skye12329 wrote:

If you paid the original account holder of your loan in full. They should contact the collection agency or you can prove that you paid it in full to the collection agency and have the collection removed then. The 120 days late would stay on the account. Because if the original account is PIF there should be no reason to need to pay it again. 

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A CA isn't required to remove a collection just because the OC was paid directly if it had collection authority at the time it was paid.  The collection just has to be listed as a paid collection.

[Anonymous]

Account never went to a collection agency, both items listed are from the U.S. Dept of Edu

[Anonymous]

Most student loans are broken out by dispersement.  Was your loan dispersed in two payments?  My original loan was recorded as 7 individual tradelnes.

[gdale6]

If you want to try and remove the lates on the paid loan you have to send the reporting entity a GW letter

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Sto...