Removing Fed Loans past dues

[Anonymous]

Has anyone had any luck removing past dues from Fed Loans?  I am caught up and making payments on time but those pesky past dues are still on there.  Thanks

[RobertEG]

The normal credit report exclusion periods under the FCRA do not apply to federal student loans.

The Higher Education Act explicity extended those exlusion periods and mandated that the lendor must report derogs on the loan to at least one CRA.

Most lendors will summarily dismiss any deletions of derogs based on the requirments of the Higher Education Act.

The exception to non-deletion is the federal rehab program, which permits the removal of derogs on currently delinquent loans by completion of ten consecutive timely payments.  Since your loan is currently in good standing, the rehab program does not apply.

[stargazer25]

I've done lots of research and followed a lot of posts. Nope, no ones been able to get them to remove. They are my only lates.

[Anonymous]

Just to add to the discussion about late payments and a possible loan rehabilitation, as RobertEG stated, if a loan is not in default, then loan rehabilatiation does not apply.  But also from something else from their website, is the statement below.  Please see the underlined sentence (Source: https://studentaid.ed.gov/sa/repay-loans/default/get-out)....

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Benefits of Loan Rehabilitation

Once your loan is rehabilitated, the default status will be removed from your loan. You will regain eligibility for benefits that were available on the loan before you defaulted, such as deferment, forbearance, a choice of repayment plans, and loan forgiveness, and you will be eligible to receive additional federal student aid. In addition, national consumer reporting agencies (credit bureaus) will be instructed to remove the record of the default from your credit history for the rehabilitated loan. However, late payments reported before the loan defaulted will not be removed from your credit history.

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[Anonymous]

Nope, mine have been paid off for 3 years and they don't even respond to my requests to remove the lates.

[trnj88]

I can absolutely assure you FedLoan will not remove lates, ever, unless you actually sue them. Threatening to sue does nothing, either.

I have a string of lates from 2015 that I had a retroactive forbearance granted to cover. The forbearance covered the month prior to the string of lates, the entire late period (approx. 5 months), plus one month after to make sure there was no discrepency.

Following the FCRA section 623 regarding "correcting and updating" information that has been reported to the CAs, legally, FedLoan should be notifying the credit bureaus that my loan was in a "forbearance" status and clear out the late payments. The reason is that the FCRA has NO exceptions for forbearance statuses, whether granted proactively OR retroactively. The bottom line is that if historical information changes on an account, it MUST be reported to the credit bureaus. Thus, any retroactive forbearance granted needs to also be updated to the credit bureaus which would essentially eliminate the late payments.

I have disputed to all three credit bureaus 11 times (33 total disputes), providing proof of my forbearance statuses and a copy of the FCRA section 623(a)(2) and 607(b). No luck, all 33 individual disputes denied.

I have complained through the Student Loan GOV Feedback Group twice, no luck. Dispute denied.

I submitted two complaints via the FTC/Consumer Financial Protection Bureau providing documentation and letterheads FROM FedLoan proving my account was in Forbearance during the entire late period. No luck. FedLoan verified I was late "at the time", and nothing was done.

Bottom line: There is zero hope. I consulted with two attorneys who agreed it is an open/shut case since the FCRA does NOT allow exceptions for retroactive forbearances. The only wording in the FCRA states that historical information must be updated if it changes.

I am suing them shortly, just prepping my case with an attorney over the next two weeks. I will let you know how it goes.

TL;DR -- There is no hope without a lawyer.