Paid off defaulted student loan - credit report wrong

[Anonymous]

Hi Everyone, 

I posted this in the studen loan section but didnt get a response so trying here - 

Long stort short I had a studnet loan  (perkins) that I believe I paid off 12 years ago come back on my credit report as defaulted.  It was for $2000 and I paid it off again in May.  My credit report was not updated so I desputed the listing and the dispute came back today as the following listing:

U S DEPT OF ED/GSL/ATL

Account Number

1221XXXX

Account Type

Installment Loan

Terms

36 Months

Date Opened

12/31/0000

Account Status

Closed

Payment Status

Paid

Payment Status Details

Paid, was a collection account, insurance claim or government claim or was terminated for default

Status Updated

07/01/2015

Payment History: 2015 JUL C

Account History: Collection as of Jul 2015

This is how it was reported before:

U S DEPT OF ED/GSL/ATL

Account Number

1221XXXX

Account Type

Installment Loan

Terms

36 Months

Date Opened

12/31/0000

Account Status

Closed

Payment Status

Late

Payment Status Details

Seriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection department

Payment History

It has C entries in June '12 and '13 (like what was just added to my new report).

So now it is being reported as a collection as of July 2015, when it should now read OK right?  By paying this off my score droped from 702 to 652 since it shows as a late collection this month.  This loan went in to default in 2002, paid in full in May 2015.  Shouldnt it show when it went to collection then show when it was paid?

I really would appreciate the help, this has been a nightmare for me as I have called and written the ES Dept of Ed and the omsbudsman before despuiting and got no help.  So I disputed and got dinged by 50 pts for paying off the loan!  What should I do next??  Thanks, Im bummed out since this is the only negative i have and it just got worse.  Advise please!?!

Thanks!  

[gdale6]

Hi OP, I removed the posting in SLs. A topic should only be posted in one forum please refrain from this in the future. I thank you for your understanding. If you think you might get a response in a better forum you can PM any mod and ask that it me looked into for a possible move or use the report inappropriate content line under topic options to notify a mod.

[RobertEG]

It should, upon your payment, have become excluded from your credit report.

\Normal delinquencies are excluded at 7 years from date of occurence.  However, federally insured or guanranteed student loans have their own, extended exclusion periods under special provisions of the Higher Education Act, and can remain past the normal 7 year period if they are unpaid.

Since the debt has now been paid to its certan death, the derogs should now be excluded.

The creditor (Dept of Ed) has no part in credit report exclusion of the adverse reportings under the loan.  That is the responsibility of the CRA.

Notify the CRA that the adverse information, whatever it is, that remains under the account must now be excluded per FCRA 605(a) and the Higher Education Act.

It should not be a problem.

[Anonymous]

Hi RobertEG,

Thank you so much for your response, a couple of comments:

1 - The loan unfortunately is a Perkins loan which is Federally backed so it can report past 7 years, I believe

2 - That said, the loan has been paid off now and it is reporting incorrectly - it should not be an open C as of July.  I suppose worst case it should be reported as a collection account that was paid and "OK" since May.   Of course I would like it removed completely.

A side note, this loan is over 15 years old but since it is reporting an unknown date opened it doesnt count on my AAoA.    

Should I disupte with the CRA or should I appeal to the Dept of Ed to change their entry?  OR perhaps both?  Thanks!