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Question about late payments...

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Anonymous
Not applicable

Question about late payments...

I have four consecutive late payments on a student loan from 2011. They are reporting as late in March, April, May, & June. This is correct information but my question is, will these fall off one at a time for four consecutive months, or will they all fall off together after the last late payments 7 or 10 years is up? Also, is it 7 or 10 years for student loan late payments? I'm assuming it must be from the time the late was reported since the loan was opened in 2000. Thank you in advance!

Message 1 of 6
5 REPLIES 5
RobertEG
Legendary Contributor

Re: Question about late payments...

The FCRA sets a period of 7 years from individual dates of occurence for monthly delinquencies.  FCRA 605(a)(5).

They become excluded individually no later than 7 years from their month/yr of occurence.

The CRAs could choose to zap all delinquencies in the same chain once the first one reaches its exclusion date.  I have no specific data to confirm that is their practice, but they could choose to do so for admin reasons.  However, it is not a requirment of the FCRA,

 

The above applies generally to monthly delinquencies, with one exception.

If the delinquency is on a federally insured or guaranteed student loan, then the exclusion period extends indefinately as long as the debt remains delinquent.

That modification of the general exclusion period for delinquencies was separately set in the Higher Education Act, and is only mentioned by footnote in the FCRA.

 

Is the student loan private or federal?

Message 2 of 6
ladyjaye82
Regular Contributor

Re: Question about late payments...

I've seen EQ remove a string of lates on mine. I'm not due for anything else to fall off until the end of the year but I will definitely be looking to EE them later this year.

Message 3 of 6
Anonymous
Not applicable

Re: Question about late payments...


@RobertEG wrote:

The FCRA sets a period of 7 years from individual dates of occurence for monthly delinquencies.  FCRA 605(a)(5).

They become excluded individually no later than 7 years from their month/yr of occurence.

The CRAs could choose to zap all delinquencies in the same chain once the first one reaches its exclusion date.  I have no specific data to confirm that is their practice, but they could choose to do so for admin reasons.  However, it is not a requirment of the FCRA,

 

The above applies generally to monthly delinquencies, with one exception.

If the delinquency is on a federally insured or guaranteed student loan, then the exclusion period extends indefinately as long as the debt remains delinquent.

That modification of the general exclusion period for delinquencies was separately set in the Higher Education Act, and is only mentioned by footnote in the FCRA.

 

Is the student loan private or federal?


Thank you! The student loan is Federal and the loan was PIF in 2012. I unfortunately missed a couple of payments in 2011. I'm trying to set some expectations as to when and how these lates will fall off my reports. In the grand scheme of things it's only a 4 month difference between the 1st and last late payment and these are my only lates. By my calculation they should all be gone after about 25 months from now. It doesn't appear that the rest of the tradeline is reporting since it's not helping my AAoA, which is unfortunate that only the negative part of the tradeline is reporting.

 

Again, thank you for your response!

Message 4 of 6
RonM21
Valued Contributor

Re: Question about late payments...

I've sometimes seen reports that strings have been removed at the same time, but to.Rob's point, they do not have to do that. It would be up to the CRA on how they decide to handle it.


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Message 5 of 6
Anonymous
Not applicable

Re: Question about late payments...

It's to my understanding that a string of lates is really just 1 late.  That is if in Jan/Feb/March/April you are showing a 30/60/90/120 day late all for the same payment what's being counted against you is the 120 day late in April; the 30/60/90 are irrelevant as they are just showing the progression toward the April 120 day late.  That said, I would expect it to remain on ones report until April 7 years later.  Even if the 30/60/90 fell off in Jan/Feb/March 7 years later it's the 120 in April that matters, so it wouldn't really make a difference.  That's how I understand it anyhow.

Message 6 of 6
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