1 missed payment = 9 derogs?

[Anonymous]

I have nine loans through Sallie Mae.  These loans are all paid each month with a single payment, which is disbursed to each loan.

2 1/2 years ago I became 150 days late in regards to payments.  Now my credit report says I have 9 accounts with delinquencies.  This seems unfair, since they all stem from one payment. 

Can they do this?  Is this a mistake, or common place?  Are these viewed as individual accounts by lenders?  Is there anything I can do (like add a statement or something) to better reflect what actually happened?

[tdbss]

yup, I have 8 loans though 8 semesters, I can't get jack for credit.  You would think it would all be one loan, but its not.

[laz98]

i understand your frustration, but it's not really unfair.  technically, you COULD pay them each individually, but of course, that would be silly for you to do.  i also pay all of my student loans with one payment.  but because they are in fact individual accounts, & are listed as such on your credit (they are, right?), then yes, you were in fact late on each account.

edited to add:  this is why sometimes a few accounts will get sold to different lenders, while others will remain the same.

Message Edited by laz98 on 12-15-2009 10:57 PM

[Hairy_Satchel]

Same here. I have 15 lates x 5 accounts. It is what's keeping my EQ score so low. NC College Foundation only reported to EQ. I asked them to report to TU and EX without the lates and they did. Moved my EQ from being my mid score to being my low score. Every little bit helps.

Message Edited by Hairy_Satchel on 01-07-2010 08:29 AM

[laz98]

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@Hairy_Satchel wrote:
Same here. I have 15 lates x 5 accounts. It is what's keeping my EQ score so low. NC College Foundation only reported to EQ. I asked them to report to TU and EX without the lates and they did. Moved my EQ from being my mid score to being my low score. Every little bit helps.

Message Edited by Hairy_Satchel on 01-07-2010 08:29 AM

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that's pretty nice of them!  i wish i could get some of my creditors to do that!  LOL

[LisaPA]

150 days late is not 1 missed payment. 150 days is 5 months, so you were behind or didn't pay 5 times. It's just like a credit card; if you miss your January payment and then pay the normal amount in February, you have really paid the January amount one month behind and now February is late. You have to pay double to catch up for 1 missed payment (not to mention interest!). Multiply that by 9 loans and you have 45 derogatory marks on your credit report.

Letting you make one payment is a convenience to you, but you are still paying back 9 loans/accounts. It is not unfair--it's not like you paid part of the amount and they could apply it to some of the loans, you missed the payment entirely. You might be able to convince them to change it to 5 30-day lates for each account, but that probably wouldn't make any difference to your score. And Sallie Mae will not respond to GWs (according to others on these boards), so no luck there either. Fortunately, since it was over 2 years ago, it is already affecting your score less and if you keep paying on time, it will have less and less effect.

[Hairy_Satchel]

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@LisaPA wrote:

150 days late is not 1 missed payment.

Lisa is correct. I know this because NC College Foundation wrote me a letter stating just that. But if they would have reported that way times the number of accounts I have, I would have about 375 lates. On a side note, I noticed my interest rate is now at 3.8% down from over 8%. Not sure if paying in full 3 of my 5 accounts has anything to do with it. Since I have become a resposible adult, Me thinks NC College Foundation loves me.