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New Contributor
stillworking
Posts: 72
Registered: ‎09-25-2013
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FYI NO MORE DIRECT LOANS

Apparently, direct loans is no longer servicing federal student loans.  All accounts have been transferred to other servicers.  There is no one available to fix errors and all disputes need to be done through the actual credit bureaus. Fortunately, nelnet has access to my account information and is sending me a letter that I was in deferment when a +120 day late payment was posted.  My question is when this is fixed, how long will it take to show on my credit report and what kind of score boost could I be looking for since it was posted incorrectly on TWO accounts.


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dta
Posts: 68
Registered: ‎07-08-2013
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Re: FYI NO MORE DIRECT LOANS

[ Edited ]

The "Direct Loan Servicing Center" was run by ACS, which was a Direct Loan servicer whose contract with the Dept of Ed ended and was not renewed. All ACS-serviced loans were transferred to other servicers. Direct Loans are still Direct Loans and loans are still being made under the Direct Loan program. See this link for additional info. I know this doesn't answer your question but I wanted to provide clarification.

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New Contributor
stillworking
Posts: 72
Registered: ‎09-25-2013
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Re: FYI NO MORE DIRECT LOANS

they do not answer their phone number and the number will no longer be active sometime in november.  I was trying to get a payment error fixed.  But according to nelnet who now has the loan, i am going to have to send the papers to the credit reporting agencies.


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Regular Contributor
kayvee_
Posts: 147
Registered: ‎06-29-2013
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Re: FYI NO MORE DIRECT LOANS


stillworking wrote:

they do not answer their phone number and the number will no longer be active sometime in november.  I was trying to get a payment error fixed.  But according to nelnet who now has the loan, i am going to have to send the papers to the credit reporting agencies.


Do you have the papers now? Do you have them as hardcopies or electronic format? If you have them in electronic format, you can easily dispute the error online for any credit file you need. If it shows up on each agency, then you are looking at three disputes (one each). Disputes usually take 30 days to process and they will send you a letter letting you know the results. 

 

If you have a hard copy, there should be instructions on each website on how to send in letters in to dispute. 

Established Contributor
chan85
Posts: 554
Registered: ‎03-13-2011
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Re: FYI NO MORE DIRECT LOANS


dta wrote:

The "Direct Loan Servicing Center" was run by ACS, which was a Direct Loan servicer whose contract with the Dept of Ed ended and was not renewed. All ACS-serviced loans were transferred to other servicers. Direct Loans are still Direct Loans and loans are still being made under the Direct Loan program. See this link for additional info. I know this doesn't answer your question but I wanted to provide clarification.


When were the loans transferred? I only have 1 with them, the rest are with FedLoan, but haven't heard anything or received paperwork about it being transferred?

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Valued Member
shootingstar_81
Posts: 39
Registered: ‎09-12-2013
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Re: FYI NO MORE DIRECT LOANS

I was advised in November 2013 that since Direct Loans Servicing is no longer that when you dispute the account they will not respond. I disputed all of the past delinquent accounts as "not mine" and they were ALL deleted! This was awesome however I wish I has disputed as "never late"  as removing them causedmyAAOA to drop. So make sure to dispute as "never late"!




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Valued Member
Bill2265
Posts: 33
Registered: ‎06-19-2013
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Re: FYI NO MORE DIRECT LOANS

Funny you mention that. I JUST finished disputed all my Dept of Ed loans and all the past payment history was deleted but the loans remained. I checked the box "I never paid this account late" worked like a charm! They deleted about 26 late payments total from five different tradelines. I tried the same "trick" with Edfinancial and they verified the late payments and also put the account description BACK to collection account AND 120 past due. SO i had to call customer service and have her put everything back the way it was post rehab. Just FYI



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SCF
Posts: 1,095
Registered: ‎06-09-2008
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Re: FYI NO MORE DIRECT LOANS


Bill2265 wrote:

 I tried the same "trick" with Edfinancial and they verified the late payments and also put the account description BACK to collection account AND 120 past due. SO i had to call customer service and have her put everything back the way it was post rehab. Just FYI


A perfect example of why disputing information that is correct can result in unintended side effects.  It's also not really honest to dispute accounts as "not mine" that did belong to you, or "never paid late" when they were indeed late and that information can still be legally reported.  I don't think that's the right thing to do.

New Contributor
tomas247
Posts: 66
Registered: ‎02-02-2014
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Re: FYI NO MORE DIRECT LOANS

Just FYI, I know of two other people besides myself who never defaulted but had multiple Direct Loans (for me 9 total) with 4 derogs on each loan. Over the last month we disputed and ALL lates were removed. Technicaly, the lates were correct (with some minor quibbles), but since no one is there to return an answer to the dispute, they get removed. 

 

So anyone with Direct Loans lates really should dispute becasue they will be taken off your report. Mine showed up like this on the CRs  -- U.S. DEPT OF ED - DIRECT LOANS.

 

Good luck!


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Moderator
09Lexie
Posts: 26,321
Registered: ‎09-13-2012
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Re: FYI NO MORE DIRECT LOANS


tomas247 wrote:

Just FYI, I know of two other people besides myself who never defaulted but had multiple Direct Loans (for me 9 total) with 4 derogs on each loan. Over the last month we disputed and ALL lates were removed. Technicaly, the lates were correct (with some minor quibbles), but since no one is there to return an answer to the dispute, they get removed. 

 

So anyone with Direct Loans lates really should dispute becasue they will be taken off your report. Mine showed up like this on the CRs  -- U.S. DEPT OF ED - DIRECT LOANS.

 

Good luck!


Disputing valid derogs is considered unethical and a violation of myfico's User Guidelines and TOS.  The advising of such behavior is also prohibited.

 

Further, lates can be re-inserted at a later time.

 

~Lexie, myFICO Moderator 


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