Defaulted Student Loans

[Nightrider_AK]

I'm new to the forum and thought someone might be able to offer some insight. I dropped out of school in 1999 and defaulted on my four student loans in late 2000. These have been reported on my CR ever since. I finally got a decent job  and paid off my loans in 2011. Since the CRAs are using the DOLA as the trigger event, these loans are scheduled to fall off in 2017, for a total of almost 17 years of being reported. Is there any legal way to get these off any sooner? the DOLA is recent but the actual default is ancient. I'm finally financially responsible and would like to purchase a home. the multiple 90+ past dues seem to be the major score killer.

[pizzadude]

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@Nightrider_AK wrote:

I'm new to the forum and thought someone might be able to offer some insight. I dropped out of school in 1999 and defaulted on my four student loans in late 2000. These have been reported on my CR ever since. I finally got a decent job  and paid off my loans in 2011. Since the CRAs are using the DOLA as the trigger event, these loans are scheduled to fall off in 2017, for a total of almost 17 years of being reported. Is there any legal way to get these off any sooner? the DOLA is recent but the actual default is ancient. I'm finally financially responsible and would like to purchase a home. the multiple 90+ past dues seem to be the major score killer.

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Are these private or federal student loans ?

[Nightrider_AK]

I wasn't sure so I called them and they stated that these are all state (private) loans via Alaska Student Loan Corp.

[Nightrider_AK]

All the loans have a default date of 11/2000, and I had a judgment granting wage garnishment in mid '04. I'm so glad these are behind me.

[pizzadude]

Ok, first I would recommend reading this recent thread:

http://ficoforums.myfico.com/t5/Student-Loans/statute-limitation-private-student-loans/td-p/1361091

Your situation might be a bit different though, because you paid the loans.   What status were the loans in before you paid ?  Were they charged~off or in collections ?   I think that makes a difference because of how the FCRA dictates that charged~off/collections drop at 7.5 years from the DOFD of account.     If the loans were never charged off prior to being paid then they could be reported negatively for 7 years from the most recent deliquency, which would likely have been the month prior to being paid.

[Nightrider_AK]

Before the loans were paid via wage garnishment, they were in collections with ACPE (Alaska Commission on Postsecondary Ed). They were never charged off, or sold. The only payments I made were back prior to default in '99. My thought process is as follows. Since these loans are private, they should "time out" 7.5 years from the charge off or DOFD or the court judgement against me, not the payoff date. None of the loans are listed as defaults, only 180+ days past due. But also have no DOFD listed. Aside from these loans I have only three lates in the last three years with a couple of medical charge-offs from '07. My score as of today is EXP 596 TU/EQ 600. The score is a bit low due to high CC utilization, but that will correct as I paid balances down below 50% on 1 May, payoff by 1 June.

[pizzadude]

If they weren't charged off then the DOFD doesn't apply ~ it is only applicable when the account is charged~off.    It seems like a lot of student loan creditors will hold deliquent loans for many years like this, without selling them or charging them off.    In this case I think that their reporting is accurate unfortunately.

I'd be interested to get other people's opinions though, I'm certainly not very experienced in the world of student loans.....

[laz98]

Are they still listed as open accounts?

[pizzadude]

Along the same lines of Laz's question ~ is the original account showing on your reports the only account ? You mentioned a judgement ~ is there a collections account or a judgment showing for this ? Also what shows on the original account, are there only monthly delenquencies showing or does it indicate any kind of collection status ?

[Nightrider_AK]

@PizzaDude That 's some of the weirdness in how it's being reported. The judgement is not listed, nor is a collections status. The late/missed payments are listed but thats it. so based on that it will be reported another 7 years. It seems like a tactic to keep things reporting for as long as possible. It seems like the "clock was restarted" at some point because i pulled a credit report in 2007 (have hard copies back to 2004) from TU that listed an estimated drop off date of 11/2010. At that point I was already defaulted, being wage garnished, my Alaska PFD was being taken, i was basically in the thick of it. So i'd like to know how the estimated drop off date moved back to 2017 between 2007 and now. I usually printed my CRs so I had a reference for changes, so i have a hard copy of the TU from annualcreditreport.com report with the DOD listed. S when I pulled another report I noticed that a DOD is not listed for those four tradelines.