Defaulted Student Loans

[pizzadude]

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@Anonymous wrote:

@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.

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Ok, so since they never reported the loan as charged~off or collections, the credit reporting time period ( CRTP ) is 7 years for negative items, so each late payment will disappear at the 7 year mark.    This is really strange that they would keep an account on their books for this long, but it seems like student loans operate differently than the rest of the credit world.  

If you can find some basis to challenge the reporting of the account as being in collections or charged~off rather than open for the past 10+ years, then that is probably the best thing to try.     Or you could try sending the creditor a GW request asking them to remove the negative account.  

[laz98]

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@pizzadude wrote:

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@Anonymous wrote:

@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.

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Ok, so since they never reported the loan as charged~off or collections, the credit reporting time period ( CRTP ) is 7 years for negative items, so each late payment will disappear at the 7 year mark.    This is really strange that they would keep an account on their books for this long, but it seems like student loans operate differently than the rest of the credit world.  

If you can find some basis to challenge the reporting of the account as being in collections or charged~off rather than open for the past 10+ years, then that is probably the best thing to try.     Or you could try sending the creditor a GW request asking them to remove the negative account.  

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If it's just reporting as a regular open account, then as pizzadude says, the lates will fall off at the 7 year mark.  Once the last one comes off, then at least in theory this account should become a positive account.  It is definitely a strange scenario that I've never heard about.

[Anonymous]

Thanks for all the help. I don't think I'll be able to get these off any sooner, but that doesn't mean I won't give it a couple more tries. I'll try the suggested GW letter with the OC based on FCRA 605(c)(1) and 605(a)(4) since this account was placed for internal collections back in 2000, more than 7 years ago. The OC. Is my only hope since the CRAs have dismissed my disputes. The glass is still half full since these loans are paid and my score is slowly recovering as time goes on. Thanks again to those who have offered advice and insight.

[Anonymous]

So here is my first attempt at a goodwill letter, any suggestions/feedback would be appreciated. I plan to mail this out on Friday.

 1 April 2012 Alaska Commission on Postsecondary Education PO Box 110505 Juneau Alaska 99811 RE: Request for removal of outdated entries ID#: AL00 01, AL00 02, AL00 03, AL00 05 Dear Sir/Madame: I am writing to request a “goodwill” deletion of four negative trade lines on my credit report due to the age of the entries. I in no way dispute the accuracy of any items listed aside from the total amount of time reported. As of August 2011, all outstanding balances have been satisfied, and show as $0 balance/Was 180+ days past due. My issue is total time of reporting. These accounts have been showing in a Past Due/Delinquent status since 1999, and are scheduled to stay on record for seven years post payoff, or August 2018. The total reporting time will be approximately 19.5 years. I do not believe this request is unreasonable, as the financially irresponsible person that I was twenty years ago no longer exists. As the original creditor, it is legally within your rights to have these items removed, and I respectfully request this action. Sincerely,

[Anonymous]

Sorry I've been away for a while. "We", as in my wife, bought a house with only her name on the mortgage due to my credit woes. And since it is a fixer upper, i've been a bit busy. In any event, I finally got around to emailing the customer service dept at ACPE (The original creditor) about getting a DOFD reported to the CRAs in an attempt to get it off due to age. Before I emailed cust service, I requested a complete payment history and specifics on when I became delinquent and defaulted. They responded with a complete payment history and a letter stating that I became 180 days past due and defaulted on Nov 29, 2000, and so I originally became delinquent on or about June 2, 2000. That's accurate. Since this information seems to be missing from the tradelines at the big three, I sent the following email requesting that the dates be forwarded to the CRAs:

To whom it may concern,

My name is Ambrose Mazion, and I had an account with ACPE (Loan Account Number XXXXXX) beginning in 1996. I took out four loans before leaving school and eventually defaulting on those loans on November 29, 2000. I accept responsibility that my default was due to my own actions, and have since been able to get the loans paid in full during 2011. These defaulted loans have all been reported to the credit bureaus, and have been reporting on my credit record since approximately 2001. It is now 2013 and the credit bureaus intend to continue reporting these  loans until 2018, seven years after the last payments were made. No debt is intended to reflect negatively on an individual past 7.5 years. What I request is an updated reporting that is a more accurate and reflective of the actual circumstances. All four of these loans defaulted on 29 November, 2000. I would like to have the actual date of default reported to all three credit bureaus, along with the fact that these are private, not federal loans.  These items have been disputed twice with all three credit reporting agencies, to no avail. Their response is that based on the information reported, there is nothing they can do. I would like to move forward past the mistakes I made many years ago, getting these antiquated tradelines removed will allow that to happen.

[Anonymous]

Well their response was less than encouraging.

March 29, 2013

Dear Mr. Mazion:

This letter is in response to the inquiry received by the Alaska Commission on Postsecondary Education (ACPE) on March 27, 2013.  You have claimed probable errors maybe present in the submitted data and have requested ACPE to substantiate account information transmitted to the three consumer reporting agencies.  This letter provides formal validation of the furnished data.

The tradelines that appear on your credit report at the three major consumer reporting agencies, Experian, Equifax and TransUnion, are for educational loans you applied for and received.  They are not a result of a consumer product, but are in fact sigoature loans; no collateral was required. The debt was legally incurred when you sigoed your master promissory notes; your sigoature constitutes a legal obligation to repay your education loan debt.  You may request a copy of your promissory notes by submitting a sigoed request.

You applied for and were awarded education loans from the Alaska Commission on Postsecondary Education to attend the University of Alaska/Fairbanks for the 1996-1998 academic years.

Alaska State Regulations specify that information regarding the status of a loan may be reported to credit bureau organizations.  Accounts that are 60 days or more past due are reported as "delinquent" and the level of delinquency is provided in number of days past due.  ACPE does not report "default" to the credit bureaus as that is an internal term used to identify borrowers

who fail to meet their loan obligation and who become ineligible for certain repayment options or

future loans.

The last time your account was reported delinquent was when it was more than 120 days past due, in the October 2010 transmission. Your account was brought current through administrative wage garnishment, so the subsequent report in November 2010 showed your payment status to be current. The tradelines for the Alaska Student loans on your credit report reflect "Paid/Current/was 180." This is an indication that your account was reported to be paid in full as of August 31, 2011, and although your account was current, it had been 180 days delinquent in the past.

There has been no administrative error in the data furnished to the consumer reporting agencies. Your loan repayment history reflects a neglected repayment obligation to ACPE.  Revising your reported information to reflect a current status or removing correct information prevents creditors the ability to accurately assess your repayment behavior.  The Fair Credit Reporting Act mandates fiduciary responsibilities of furnishers to accurately report all  loans to consumer reporting agencies; consequently ACPE is unable to comply with your request to either remove derogatory information or remove the tradelines in their entirety

Sincerely,

Heather M {Removed last Name}

Customer Service Supervisor

Well I dont believe I asked for her to magically make my failure to pay dissapear. I asked that ACPE report the date of default to the CRAs. It's almost amusing how they will send me a letter stating that I was 180 days past due and defaulted on X date, but ehy won't report that same info to the CRAs.

[Anonymous]

Reporting time for student loans has to be the most confusing thing in the world. Default 12+ years ago, check. Sued 10+ years ago, check. Paid off loan via wage garnishment 2 years ago, check.

Default - Never reported to CRAs

Sued - Used default/delinquency as grounds to sue

Credit report has delinquent loans + court judement listed

Court Judgement has fallen off due to age, but the account the judgement was based on will stay on credit report until 2018.

Doesn't make sense. I'm not a criminal, but I could have robbed a bank and been "free" faster than defaulting on a student loan.

[Anonymous]

@PizzaDude , I have a question that yo might be able to answer. Even though these loans were never reported as collections or default, would the fact that they sued and won a judement againt me show that this was a collections account? And could the date of the judgement  and the fact that it has fallen off due to age be used in some way.