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Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008

Defaulted, then paid, Perkins loan -- help on reporting?

Hopefully, LynnInMN could possibly chime in on this ...

This is the situation. A Perkins loan was opened in '98 and defaulted on in '00.

No claim ever appeared on the person's CR.

The loan continued to be reported in good standing, despite the default status.

Then, in Feb '09, the borrower paid the loan in FULL. No rehab. No partial payments. Just paid it off to the DoE. Now, it's being reported as a collection/paid claim filed by government. It had NEVER reported as a collection prior.

The question is: Is this reporting correctly? What date is used in determining CRTP on this tradeline? The date the loan went default? Or the date the loan was paid in full?

Bottom line: If the loan was opened in '98, defaulted in '00 and was paid off in Feb '09, when should this item fall off the CRs? And should it already have done so?

 

And in asking for a GW (rots of ruck, I know, in succeeding), who would the GW be sent to?

 

Thank you ever so much for any advice!!

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Frequent Contributor
LynnInMN
Posts: 465
Registered: ‎06-13-2008

Re: Defaulted, then paid, Perkins loan -- help on reporting?

Loan was subrogated by the feds which starts the 7 year reporting cycle all over again.  This is a common occurance with Perkins loans if the school fails to collect ...usually happens in the 7-8 year mark.  Will continue to report from the date that the DOE paid the claim...7 years. DOE doesnt goodwill either.
Ex-Financial Aid Officer

Ex-Student Loan Collector
Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008

Re: Defaulted, then paid, Perkins loan -- help on reporting?


LynnInMN wrote:
Loan was subrogated by the feds which starts the 7 year reporting cycle all over again.  This is a common occurance with Perkins loans if the school fails to collect ...usually happens in the 7-8 year mark.  Will continue to report from the date that the DOE paid the claim...7 years. DOE doesnt goodwill either.


Well ... crap-on-a-stick. Yuck. That's what I thought (I've been reading your posts and doing my best to learn). :/

 

So, the "new" CRTP starts from the date the DOE paid the claim? In this case, would that be safe to assume that it's the '00 date (or somewhere around it)?

 

So, if the DOE paid the claim in '00/'01, wouldn't that mean that it should be off the CRs by now? That would be over the 7 year mark.

 

The loan defaulted in '00/'01 (the last payment was made on the account in '00 sometime)  - so would the claim have been filed around then? Is there any way to find out those dates?

 

Like I said earlier (I think I mentioned it), none of the uglies appeared on the CRs until after the borrower paid the balance in '09. So, as far as using CRs as a reference, there's no way to tell when a claim was filed or paid just from the CRs.

 

Honestly, thank you VERY much, Lynn!!  I really do apologize if I'm not making much sense -- or if I just seem dense. :/

 

But really, thank you!!!

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Frequent Contributor
LynnInMN
Posts: 465
Registered: ‎06-13-2008
0

Re: Defaulted, then paid, Perkins loan -- help on reporting?

Perkins loans are administered by the school...so it if was opened in 98, defaulted in 00, by my calculations the DOE would have subrogated probably in the last year.  The school always has it first
Ex-Financial Aid Officer

Ex-Student Loan Collector
Senior Contributor
BungalowMo
Posts: 4,237
Registered: ‎05-01-2008
0

Re: Defaulted, then paid, Perkins loan -- help on reporting?

[ Edited ]

Hi Lynn!!  That is my letter!!  (thanks Wonderin'...you rule!)

 

I have a letter that states that the DOE got my loan on April 17, 1998!!!!!!  They have HAD my loan since then.  Who would the subrogate to/from???  (did that make sense??)

 

Ok, this whole subrogated thing has me confused.

 

Is this legal?  Can they say it's a new collection as of the date I PAID it???

 

That's just wrong!  And, of course, to top it off, it's Experian...the only one reporting it!  So who knows how far my FICO score has sunk with that new glowing TL on there!  :smileysad:

Message Edited by BungalowMo on 05-04-2009 04:53 PM


Starting Score: 07/2011 TU 732 - EQ 717 - EX 702
Current Score: 06/2014 TU 739 - EQ '08 709 - EX 721
Goal Score: 850

Bury me in the garden...last app 06.18.14

Senior Contributor
BungalowMo
Posts: 4,237
Registered: ‎05-01-2008
0

Re: Defaulted, then paid, Perkins loan -- help on reporting?


LynnInMN wrote:
Loan was subrogated by the feds which starts the 7 year reporting cycle all over again.  This is a common occurance with Perkins loans if the school fails to collect ...usually happens in the 7-8 year mark.  Will continue to report from the date that the DOE paid the claim...7 years. DOE doesnt goodwill either.

Well, I had a letter ready to mail that took me 3 days to put together & several supporting documents with highlighted sections explaining my situation.

 

I have a woman's name that had sent me correspondance in the past & now she's the regional director of the collections in their Chicago office.

 

I have to try!   I'll post what I find out.  If they refuse, I'm out some time & a couple postage stamps.



Starting Score: 07/2011 TU 732 - EQ 717 - EX 702
Current Score: 06/2014 TU 739 - EQ '08 709 - EX 721
Goal Score: 850

Bury me in the garden...last app 06.18.14

Frequent Contributor
LynnInMN
Posts: 465
Registered: ‎06-13-2008
0

Re: Defaulted, then paid, Perkins loan -- help on reporting?

There is absolutely no way that the DOE got the loan in 98 if that is when it was opened.  Opened usually means when you borrowed it.  Perkins loans are ALWAYS administered by the school....the loans are from the DOE but the school holds the lending, billing, reporting  and collecting responsiblity.
Ex-Financial Aid Officer

Ex-Student Loan Collector
Senior Contributor
BungalowMo
Posts: 4,237
Registered: ‎05-01-2008
0

Re: Defaulted, then paid, Perkins loan -- help on reporting?


LynnInMN wrote:
There is absolutely no way that the DOE got the loan in 98 if that is when it was opened.  Opened usually means when you borrowed it.  Perkins loans are ALWAYS administered by the school....the loans are from the DOE but the school holds the lending, billing, reporting  and collecting responsiblity.

This loan was for one accelerated course.  From May 97 to Feb 98.

 

I had actually borrowed in 97.  I never paid anything to the original folks. (Mitchell Sweet & Ass.)

 

I want to attach the docs but can't attach a pdf!



Starting Score: 07/2011 TU 732 - EQ 717 - EX 702
Current Score: 06/2014 TU 739 - EQ '08 709 - EX 721
Goal Score: 850

Bury me in the garden...last app 06.18.14

Frequent Contributor
LynnInMN
Posts: 465
Registered: ‎06-13-2008
0

Re: Defaulted, then paid, Perkins loan -- help on reporting?

Inschool deferment would have appliked during your inschool period.....then 9 months deferment....so your loan probably didnt even come due until 99.
Ex-Financial Aid Officer

Ex-Student Loan Collector
Senior Contributor
BungalowMo
Posts: 4,237
Registered: ‎05-01-2008
0

Re: Defaulted, then paid, Perkins loan -- help on reporting?

[ Edited ]

First letter

 

Second letter

 

These are the first 2 letters I got.  This loan was barely held by 1st company.  It was almost immediately sent to Dep of Ed.

 

_____________________________________________________________________________________

 

Lynn...in another post you had mentioned.. "DOFD has no bearing with defaulted student loans...everything is based off the defaut or claim paid date."

 

With that being said...which date would be the one I'd go by for this nightmare to drop off?

 

 

Next Type of Loan: 1 FEDERAL PERKINS
Loan obtained while attending the LINCOLN TECHNICAL INSTITUTE

Date Entered Repayment: N/A
Loan Period Begin Date: N/A
Loan Period End Date: N/A
Amounts and Dates
Loan Amount   $800
Outstanding Principal Balance   $1
Outstanding Principal Balance As of Date   04/24/2009 
Outstanding Interest Balance   $0
Outstanding Interest Balance As of Date  04/24/2009
Interest Rate  FIXED
Canceled Amount  $0 
Canceled Date  
Disbursement(s) and Status(es)
 
Disbursement Date  10/31/1997
Disbursement Amount   $800
 
Loan Status                    Status Description                        Status Effective Date                 
DU                            DEFAULTED, UNRESOLVED                   04/24/2009     
PF                                    PAID IN FULL                                  02/23/2009     
DU                            DEFAULTED, UNRESOLVED                   05/12/2000     
ID                           IN SCHOOL OR GRACE PERIOD                05/13/1998 
 
Servicer/Lender/Guaranty Agency Information Contact This loan has been transferred to the Debt Collection Service of the Department of Education.
For answers to questions concerning this aid please contact
the service at 1-800-621-3115.<------ haha yeah, right
Message Edited by BungalowMo on 05-05-2009 03:33 PM
Message Edited by BungalowMo on 05-05-2009 03:42 PM


Starting Score: 07/2011 TU 732 - EQ 717 - EX 702
Current Score: 06/2014 TU 739 - EQ '08 709 - EX 721
Goal Score: 850

Bury me in the garden...last app 06.18.14


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