11-16-2012 01:06 PM
I have six student loan accounts with Sun Trust/AES all reporting 60-day late from May 2006. It's a long story so I'll try to be succinct.
According to the AES representative, they automatically used my one-time grace period in 2005. I did not request it. It was automatically applied. Therefore, when they received notice that I was no longer enrolled, payment was due immediately - NO GRACE WHATSOEVER.
So, by the time my deferment was processed, 60 days had indeed passed. Incidentally, the last contact that they show with me was back in 8/2010.
My issue is the fact that I assumed there was a grace period that evidently did not exist. This results in six 60-day lates on my CR from 4/2011. As you can imagine, this is killing my attempt to rebuild.
I am VERY new to this endeavor. Please tell me what you would do if you were in my shoes. Am I simply SCREWED?
11-16-2012 05:04 PM
Welcome to the forums! Sorry it's because of a tough situation, though
You said they automatically used your grace period in 2005...but you didn't mention what you were doing in 2005. Were you out of school for a long time?
Also, you said your lates are from May 2006......but that you left school in Dec 2010 & that AES wasn't notificed until Feb 2011, resulting in a 60-day lapse. So are your lates from 2006, or from 2011? Because you said you also have lates from April 2011. I'm not following your post.
Regardless, it has been my experience that yes, the 6-month grace period is automatically started once you either leave school completely or start attending only half-time.
If these lates are from May 2006, then they should be coming off next year (approximately May 2013). In my opinion, it's really almost not worth worrying about, since you've already suffered the consequences for most of the 7 years that they would be hurting you anyway. Unless you are going to buy a house or something, I honestly would just wait it out. What's 6-7 more months at this point?
If they are from 2011, then they are hurting your score much more. But since you know that you were in fact late, & there was no real error on their part, all you would be able to do is write them goodwill letters asking them to kindly remove the lates from their reporting.
(Now I feel like MY post in confusing! I hope you are able to get my point.)
11-16-2012 05:48 PM
11-16-2012 05:55 PM
Okay, now I understand
So then your path will be goodwill letters. Good luck!
11-17-2012 10:07 AM
I've heard they count more like 30-day lates after 2 years, but I'm not sure. I didn't really notice a change when I had that situation, but that's not to say that it won't happen!
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.