Student Loan Delayed Reporting

[Anonymous]

Hi Everyone, new to the board. 

I had a couple federal student loan that ended up defaulting several years ago. It somehow never managed to appear on my credit report... until today. It's showing closed as of this month, even though I haven't touched it or made a payment on it for probably 6 years now. Any idea what's going on here? Is this something I need to contest as inaccurate? Seems to me a closure date of this month isn't accurate, but I may be misunderstanding what's really going on. 

[RobertEG]

The key is that the loan is a federal student loan.

Federal student loans are exempt under provisions of the Higher Education Act from SOL on the debt, from the normal credit report exclusion periods while the loan remains unpaid (meaing derogs can remain forever until the loan is paid), and delinquencies are requried to be reported to a CRA.

Thus, it is highly unlikely that any derogs reported on the loan will be removed.

Closed status for a defaulted loan simply means they are calling the loan due.

A dispute of accuracy of that reporting must show how it is inaccurate.

Open or closed wont affect any other reporting, and wont be basis for removal of the account from your report.

They will eithr verify its accuracy as reported, or corrrect so as to overcome any agreed inaccuracy.

Personally, I dont see a substantive issue for dispute, open or closed is not the current status, which reports its delinquency level, not its open or closed status.

I dont see its relevance to payment history scoring.

[Anonymous]

Same thing happened to me.  I was informed that Dept. Education had not reported for years to Transunion and began last week.  I am still trying to find out if there's anything I can do about it.

[RobertEG]

Not having reported for years was only a benefit to the consumer, and did not unfarily damage them.

Thus, not having been penalized for prior years when they could have reported would not be basis for asserting that current reporting is inaccurate or unfairly damaged the consumer.

They have become aware of the error, and now made proper reporting.

You dodged prior bullets. 

Be thankful.