How to handle to get deleted?

[Anonymous]

My husband has a student loan that went into default. Two more collection entries were then added to his report for the subsidized and unsubsidized portions of the loan, so a total of 3 negative entries are on his report for the one student loan. The last payment he made on them before they went into default (after which they were paid off in full) was October 2003, and I have an account summary from the Federal Student Aid website showing this date as his last loan payment. On Transuion and Equifax the original entry shows that it should be falling off this September.

On Experian we made the mistake of disputing the original entry (this was in my pre-educated days, and I thought it could be disputed as a duplicate entry) and the fall of date was changed to March 2012. Should I send them the statement I have showing that the last payment made was 10/2003? Should I wait til it falls of Equifax and Transunion? 

The other problem is that the two collection account entries seem to show that they'll fall off December 2012. I'm getting this from Transunion because Equifax and Experian don't say fall off dates. The collection accounts were first reported 06/2006, but on Equifax it shows DOFD as 01/2006, so I guess that's what the 12/2012 date is being based on. But since these are just collections on the original student loan, shouldn't they fall off at the same time as the student loan? How can I go about making this happen?

[Anonymous]

Also, should he expect to see an increase in his credit? He currently is around 650 with 4 baddies - these 3 and a BOA charge off (that makes me want to poke my eyeballs out every time I think about it, lol). At least on TR and EQ, when he goes down to 3 baddies should he see a bump in score? 

[RobertEG]

Be aware.  In section 605(a)(5) of the FCRA, there is footnote included in the statute that states, with regard to the continued CR inclusiion dates, that, and I quote:

"The reporting periods have been lengthened for certain adverse information pertaining to U.S. Government insured or guaranteed loans, or loans pertaining to national direct student loans.  See sections 430(A)(f) and 463(c)(3) of the Higher Education Act of 1965, 20 U.S.C> 1087cc(c)(3), respectively."

You might want to check these out before assuming the normal 7-year period applies.

[Anonymous]

When it comes to credit bureau reporting, student loans and child support obligations are general exceptions to the rules.

Student loans report:

1.  7 years from the date lender received reimbursement from the government as guarantor;

2.  7 years from the date the government, lender or subsequent holder first reported the
account to the CRA; or

3.  7 years from the date of last default.

[RobertEG]

Thanks for the specifics, O6!

[Anonymous]

I read over the things mentioned, and believe number 3 from O6's post is what applies to this situation. This sounds basically like the same way most collections are handled - if you went late but then caught back up again, and then went late again and then ultimately didn't come out of default, the fall of date would be based on the last time you went late, not the first time.

The student loan went into default for so long that it was turned into collections. They were then eventually paid off, but never came out of default, so to speak. The last payment made  was on 10/2003, but the two collection accounts show DOFD (i.e. the date it first went delinquent and never came out again) as 01/2006. But that isn't true. It may have been turned over to collections on that date, but the DOFD happened long before that date, as the loan never went current again after the 10/2003 payment. The CA should remove 7 years from the default date on the OC, right?

[Anonymous]

How does one know which of these 3 apply to their situation?

My wife has a Sallie Mae loan (shows up as "EDUCATION" on her report but she thinks it was private?) that was charged off and is showying up on her credit reports.

The reports show:

"Closed Account"

Status: Charged off, Variable adjustable Rate

Date reported 07/2011

last payment on 10/2004

DOFD on 11/2007 (seems wrong if the last payment was on 10/2004??)

Major Del on 06/2008 (seems wrong if the last payment was on 10/2004??)

Charged off on 07/2011

Bonus questions:

Interestingly enough, since she changed her last name to mine, her most recent Transunion report only shows 1 line of credit...a business credit card I opened using my name and added an additional card for her. What I think is happening is she has not reported to the CRA's that she changed her name so they now have 2 seperate files on her. If this Sm loan is workign against her, is it ideal to just not report the name change? (yes, I understand this means starting her credit again from scratch) I didn't even realize that would show up on her credit history but is it safe to assume the regular use and payment on it will help her credit?