AES/PHEAA Goodwill

[queen_britt2003]

Hi Everyone,

This is my 1st time posting in the Student Loan forum.  I have a quick question.  I am working towards getting my FICO score up in preparation for home ownership.  I'm currently at 621 (middle score) and I would like to get up to 640.  My LO suggested getting two lates removed from AES/PHEAA.  The loans were opened in 2006 and consolidated in December 2008.  The lates occurred in June & July 2008.  Has anyone had any success with goodwill removals.  I called into customer service & they suggested I write a letter to the credit department and ask that my account be placed under review.  Anyone have experience with this?

[scvbd99]

If they're reporting accurately, you're at their mercy.  

In general, for any goodwill adjustment request, you should be succinct, humble, polite, and complimentary of the servicer's customer service.  Acknowledge that it's your fault, that you never plan on it happening again, and explain exactly what you want them to adjust.  If you're doing it by snail mail, DO NOT send it by certified mail, and especially NOT return receipt requested. 

That's my $0.01.  I'm sure others have more to say. 

[queen_britt2003]

Do student loan lates stay on 7 years like other lates or is there an extended reporting period?

[scvbd99]

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@queen_britt2003 wrote:

Do student loan lates stay on 7 years like other lates or is there an extended reporting period?

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Generally speaking, yes, 7 years.  They're installment loans like any other as far as the FCRA is concerned as long as they're NOT in default.

Default status for federal loans is governed by the Higher Education Act instead.  Defaulted student loans can remain on your credit reports for any of the following, depending on how the guaranty agency wants to report it:

- 7 years from the date they are paid, or

- 7 years from the date they were first reported, or

- 7 years from the date the loan defaults again

One thing to remember is the lates hurt significantly less over time.  I have a about a dozen lates right now on my reports, some of which are 120 and 150 days.  The lates were all 5 years ago, and they're the only negative items on my credit reports, and I'm in the 710s and 720s even with limited revolving credit history. YMMV of course, but they hurt less and less over time.