DOFD Nelnet

[Anonymous]

I'm trying to get an understanding of how DOFD works. I went into delinquency in June of 2012. Per my Nelnet payment record there was no activity until January 2014. Now, since January 2014 I have remained in goodstanding and am still paying off my loan.

My credit report currently states, "Current account/was delinquent 180 days or more past due date".

I'm curious, since I meet the 7 year mark this June, will the entire status of "was deliquent...." come off of my report? I'm sorry if this has been repeatedly answered. I really need it broken down. The posts I've found are different situations or using the terminology I'm not quite familiar with just yet. What I did gather is that the removal completely applies only if the account never becomes current.

Thank you!

[Tazman81]

Hi Alicia:

Great question.  Here is some info on DOFD.  This typically only applies to accounts that have gone deliquent and there has been no other activity on that account, including no payments made.  Then what happens is in most cases that account falls off your credit report 7 years after DOFD.

This is not the same case for current accounts where payments are being made.  Any baddies that you have on this account will remain for 7 years.  To give you an example.  Lets say that you had a 30day late on this account back in March 2010.  Well, since that 30 day late is now 7 years old, it will be falling off your report.  But if you had another 30 day late in December of 2010, that would remain on your report until it's 7 years old because it's a current account.

So, the good news is that the report is more favorable because it's no longer in a deliquent status and shows current.  Also, it's favorable if your most current payment history (especially the most current 2 years) has no late payments.  This then makes your older late payments hurt your score less as they continue to age.  Keep doing what you are doing to continue making on time payments.

As a second part to this, you may want to check with Nelnet to see what type of forebearance scenarios they support because if one of those scenarios applied to your situation during the times the account was deliquent, you could possible submit paperwork to them proving this in an effort to help clean up that file.  Otherwise, time will do the clean up for you, and most importantly, be sure to keep up on payments.  A current late payment hurts your score much more than the aged ones.