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HELP getting fedloan delinquent payments off credit score!

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Anonymous
Not applicable

HELP getting fedloan delinquent payments off credit score!

Hello, I had to withdrawal from school due to medical issues(severe substance abuse) and attend a medical facility for rehabilitation. Due to being in said school I could not enroll in courses for 10 months thus payment on my student loans was due. I did not educate myself, and therefore my credit score has been hit for a whopping negative 178 points. After doing some research I have done the following- I will be enrolled in 7 credit hours this semester thus meeting the minimum of part time school to put payments in deferment and I will be contacting my lender to see if they can remove said delinquent marks on my credit report. 

 

I need some advice. I have read a bit on forbearance and retro forbearance, but I need guidance. Please, I was just rebuilding my credit and had gone from a 450-580 and was on my way to a 600. This sets me back really bad and I need to know if I have any chance of this being rectified. 

Thank you,

 

ps. Yes I can provide the lender with documentation that I was in said facility and could not attend classes OR afford the payment of 1,900.00 dollars to keep my account up to date. 

Thank you for any and all information you guys have.

 

my account has been past due for 120 days.

 

 

I have read that people being granted retro forbearance for the delinquent dates have had their credit score updated and the negative marks taken off. 

How do I know i qualify for this? what do I need to do?

 

I also read this 

 

-Definitions: 
Furnisher of information - this is any lender or servicer or institution who furnishes information to a credit bureau. 

Credit Bureau (CB) – Any of the three Credit Reporting Agencies

-Scenarios:
1. You, the student, were late/not up to date with your student loan payments for a period - 30, 60, 90, 120 days. You were in fact late. A deferment/forbearance was granted, at a subsequent date, and applied retroactively covering the time frame you were late on your payments. 

Section 623 of the Fair Credit Reporting Act governs the responsibilities of furnishers of information to consumer reporting agencies. Specifically, Subsection 623 (a)(2) imposes a "[d]uty to correct and update information." 

Here, in Scenario 1, a student fell behind on payments. As a result, the furnisher of information (the lender) informed CB of the late payments. CB then updated the student's credit report with the delinquent payments. At this time the information is accurate andupdated. It reflects the records provided by the furnisher of information.

However, student was granted a deferment/forbearance that applied retroactively covering the period of delinquent payments. This deferment has changed TWO things. First it has brought the account up to date and current on payments. As a result the account is no longer delinquent. 

Second and most important the lender's records now show that your account is current on payments for the periods that include previously reported delinquent periods. In example if you were late on your payments for the month of January February and March – the retroactive deferment has brought your account current on payments INCLUDING January February and March. Now this is key. It is important to note that as of now – with the updated information – your account is current with the lender. It is no longer delinquent because the deferment was applied retroactively. 

As a result the furnisher of information has a duty under Section 623 (a)(2) to provide this updated information to the CB and CB is obligated under Section 607( to report this updated information on the consumer's credit report. 

Some lenders will try to argue that you were in fact late – therefore that information is accurate. However you need to remind them of their obligation pursuant to Section 623(a)(2) – a duty to correct and update information. They need to understand that the lender's current records show that the periods that were initially reported as delinquent are no longer delinquent due to the retroactive deferment. The payments are now, as a matter of fact, current during the previous delinquent periods.

Think of it this way – if you submitted a dispute with a CB regarding the delinquent periods being reported as delinquent – the furnisher of information has an obligation to provide updated information to the CB pursuant to 623(a)(2). They can't say – "oh by the way he was late at one point." That is contrary to the code – which imposes a duty to update information. The fact that at one point information existed that is NO LONGER current runs contrary to Section 623(a)(2) and its requirement to provide current and updated information. 

Because the deferment applied retroactively – the furnisher of information's records show that you are up to date for a period that INCLUDES those dates reported to the CB as delinquent. Therefore the lender has to update this information and the CB must report what the current record shows – that you are up to date on your payments including those dates previously delinquent. 


2. You were late/not up to date with your student loan payments for a certain period. You did apply for a retroactive forbearance/deferment prior to your late payments. Due to unknown/unspecified/other reasons your deferment/forbearance was not approved until after your late payments, resulting in negative marks on your credit report. 

See the above analysis – same arguments. However your position is stronger under these circumstances – you will argue that for some mistake by the lender – your request was NOT processed on time. As a result of their failure to process your request on time for a deferment – the delinquencies should be updated to show the current information – that you are up to date with payments during the period that the retroactive deferment applies. 

Ultimately – it boils down to the simple – if the current information shows that payments are up to date – for example – from January of 2010 through March of 2010 – a CB cannot report delinquent payments because of outdated information. Section 63 of FCRA was enacted precisely to prevent inaccurate or outdated information. It was intended to impose a duty on furnishers of information and CB to update information that is being reported. 

Message 1 of 4
3 REPLIES 3
Anonymous
Not applicable

Re: HELP getting fedloan delinquent payments off credit score!

Hello:

 

If you are looking into resolving or getting more information about Student Loans and what programs are available.  I know of a consultant group that could help you and guide you.

 

Its consolidating your loans to which you would be eligible for their new repayment program to which if you fall below the income poverty amount of $17,500 below, you may be qualified for a 0 payment amount to which your loan may also be qualififed for the Loan forgiveness program after 240 or 300 payments.  Depending if you are a G rad or Undergrad.  

 

In addition, if you work for a Government or Non Profit Organzation, you be qualified for the Loan Forgiveness Program after you have made all of your payment terms.

You can call 888.332.6121 ext 7003. 

 

You can reply back to me or email me directly, if it allows.

 

 


@Anonymous wrote:

Hello, I had to withdrawal from school due to medical issues(severe substance abuse) and attend a medical facility for rehabilitation. Due to being in said school I could not enroll in courses for 10 months thus payment on my student loans was due. I did not educate myself, and therefore my credit score has been hit for a whopping negative 178 points. After doing some research I have done the following- I will be enrolled in 7 credit hours this semester thus meeting the minimum of part time school to put payments in deferment and I will be contacting my lender to see if they can remove said delinquent marks on my credit report. 

 

I need some advice. I have read a bit on forbearance and retro forbearance, but I need guidance. Please, I was just rebuilding my credit and had gone from a 450-580 and was on my way to a 600. This sets me back really bad and I need to know if I have any chance of this being rectified. 

Thank you,

 

ps. Yes I can provide the lender with documentation that I was in said facility and could not attend classes OR afford the payment of 1,900.00 dollars to keep my account up to date. 

Thank you for any and all information you guys have.

 

my account has been past due for 120 days.

 

 

I have read that people being granted retro forbearance for the delinquent dates have had their credit score updated and the negative marks taken off. 

How do I know i qualify for this? what do I need to do?

 

I also read this 

 

-Definitions: 
Furnisher of information - this is any lender or servicer or institution who furnishes information to a credit bureau. 

Credit Bureau (CB) – Any of the three Credit Reporting Agencies

-Scenarios:
1. You, the student, were late/not up to date with your student loan payments for a period - 30, 60, 90, 120 days. You were in fact late. A deferment/forbearance was granted, at a subsequent date, and applied retroactively covering the time frame you were late on your payments. 

Section 623 of the Fair Credit Reporting Act governs the responsibilities of furnishers of information to consumer reporting agencies. Specifically, Subsection 623 (a)(2) imposes a "[d]uty to correct and update information." 

Here, in Scenario 1, a student fell behind on payments. As a result, the furnisher of information (the lender) informed CB of the late payments. CB then updated the student's credit report with the delinquent payments. At this time the information is accurate andupdated. It reflects the records provided by the furnisher of information.

However, student was granted a deferment/forbearance that applied retroactively covering the period of delinquent payments. This deferment has changed TWO things. First it has brought the account up to date and current on payments. As a result the account is no longer delinquent. 

Second and most important the lender's records now show that your account is current on payments for the periods that include previously reported delinquent periods. In example if you were late on your payments for the month of January February and March – the retroactive deferment has brought your account current on payments INCLUDING January February and March. Now this is key. It is important to note that as of now – with the updated information – your account is current with the lender. It is no longer delinquent because the deferment was applied retroactively. 

As a result the furnisher of information has a duty under Section 623 (a)(2) to provide this updated information to the CB and CB is obligated under Section 607( to report this updated information on the consumer's credit report. 

Some lenders will try to argue that you were in fact late – therefore that information is accurate. However you need to remind them of their obligation pursuant to Section 623(a)(2) – a duty to correct and update information. They need to understand that the lender's current records show that the periods that were initially reported as delinquent are no longer delinquent due to the retroactive deferment. The payments are now, as a matter of fact, current during the previous delinquent periods.

Think of it this way – if you submitted a dispute with a CB regarding the delinquent periods being reported as delinquent – the furnisher of information has an obligation to provide updated information to the CB pursuant to 623(a)(2). They can't say – "oh by the way he was late at one point." That is contrary to the code – which imposes a duty to update information. The fact that at one point information existed that is NO LONGER current runs contrary to Section 623(a)(2) and its requirement to provide current and updated information. 

Because the deferment applied retroactively – the furnisher of information's records show that you are up to date for a period that INCLUDES those dates reported to the CB as delinquent. Therefore the lender has to update this information and the CB must report what the current record shows – that you are up to date on your payments including those dates previously delinquent. 


2. You were late/not up to date with your student loan payments for a certain period. You did apply for a retroactive forbearance/deferment prior to your late payments. Due to unknown/unspecified/other reasons your deferment/forbearance was not approved until after your late payments, resulting in negative marks on your credit report. 

See the above analysis – same arguments. However your position is stronger under these circumstances – you will argue that for some mistake by the lender – your request was NOT processed on time. As a result of their failure to process your request on time for a deferment – the delinquencies should be updated to show the current information – that you are up to date with payments during the period that the retroactive deferment applies. 

Ultimately – it boils down to the simple – if the current information shows that payments are up to date – for example – from January of 2010 through March of 2010 – a CB cannot report delinquent payments because of outdated information. Section 63 of FCRA was enacted precisely to prevent inaccurate or outdated information. It was intended to impose a duty on furnishers of information and CB to update information that is being reported. 


 

Message 2 of 4
Anonymous
Not applicable

Re: HELP getting fedloan delinquent payments off credit score!

Hello:

 

If you are looking into resolving or getting more information about Student Loans and what programs are available.  I know of a consultant group that could help you and guide you.

 

Its consolidating your loans to which you would be eligible for their new repayment program to which if you fall below the income poverty amount of $17,500 below, you may be qualified for a 0 payment amount to which your loan may also be qualififed for the Loan forgiveness program after 240 or 300 payments.  Depending if you are a G rad or Undergrad.  

 

In addition, if you work for a Government or Non Profit Organzation, you be qualified for the Loan Forgiveness Program after you have made all of your payment terms.

You can call 888.332.6121 ext 7003. 

 

You can reply back to me or email me directly, if it allows.

 

 


@Anonymous wrote:

Hello, I had to withdrawal from school due to medical issues(severe substance abuse) and attend a medical facility for rehabilitation. Due to being in said school I could not enroll in courses for 10 months thus payment on my student loans was due. I did not educate myself, and therefore my credit score has been hit for a whopping negative 178 points. After doing some research I have done the following- I will be enrolled in 7 credit hours this semester thus meeting the minimum of part time school to put payments in deferment and I will be contacting my lender to see if they can remove said delinquent marks on my credit report. 

 

I need some advice. I have read a bit on forbearance and retro forbearance, but I need guidance. Please, I was just rebuilding my credit and had gone from a 450-580 and was on my way to a 600. This sets me back really bad and I need to know if I have any chance of this being rectified. 

Thank you,

 

ps. Yes I can provide the lender with documentation that I was in said facility and could not attend classes OR afford the payment of 1,900.00 dollars to keep my account up to date. 

Thank you for any and all information you guys have.

 

my account has been past due for 120 days.

 

 

I have read that people being granted retro forbearance for the delinquent dates have had their credit score updated and the negative marks taken off. 

How do I know i qualify for this? what do I need to do?

 

I also read this 

 

-Definitions: 
Furnisher of information - this is any lender or servicer or institution who furnishes information to a credit bureau. 

Credit Bureau (CB) – Any of the three Credit Reporting Agencies

-Scenarios:
1. You, the student, were late/not up to date with your student loan payments for a period - 30, 60, 90, 120 days. You were in fact late. A deferment/forbearance was granted, at a subsequent date, and applied retroactively covering the time frame you were late on your payments. 

Section 623 of the Fair Credit Reporting Act governs the responsibilities of furnishers of information to consumer reporting agencies. Specifically, Subsection 623 (a)(2) imposes a "[d]uty to correct and update information." 

Here, in Scenario 1, a student fell behind on payments. As a result, the furnisher of information (the lender) informed CB of the late payments. CB then updated the student's credit report with the delinquent payments. At this time the information is accurate andupdated. It reflects the records provided by the furnisher of information.

However, student was granted a deferment/forbearance that applied retroactively covering the period of delinquent payments. This deferment has changed TWO things. First it has brought the account up to date and current on payments. As a result the account is no longer delinquent. 

Second and most important the lender's records now show that your account is current on payments for the periods that include previously reported delinquent periods. In example if you were late on your payments for the month of January February and March – the retroactive deferment has brought your account current on payments INCLUDING January February and March. Now this is key. It is important to note that as of now – with the updated information – your account is current with the lender. It is no longer delinquent because the deferment was applied retroactively. 

As a result the furnisher of information has a duty under Section 623 (a)(2) to provide this updated information to the CB and CB is obligated under Section 607( to report this updated information on the consumer's credit report. 

Some lenders will try to argue that you were in fact late – therefore that information is accurate. However you need to remind them of their obligation pursuant to Section 623(a)(2) – a duty to correct and update information. They need to understand that the lender's current records show that the periods that were initially reported as delinquent are no longer delinquent due to the retroactive deferment. The payments are now, as a matter of fact, current during the previous delinquent periods.

Think of it this way – if you submitted a dispute with a CB regarding the delinquent periods being reported as delinquent – the furnisher of information has an obligation to provide updated information to the CB pursuant to 623(a)(2). They can't say – "oh by the way he was late at one point." That is contrary to the code – which imposes a duty to update information. The fact that at one point information existed that is NO LONGER current runs contrary to Section 623(a)(2) and its requirement to provide current and updated information. 

Because the deferment applied retroactively – the furnisher of information's records show that you are up to date for a period that INCLUDES those dates reported to the CB as delinquent. Therefore the lender has to update this information and the CB must report what the current record shows – that you are up to date on your payments including those dates previously delinquent. 


2. You were late/not up to date with your student loan payments for a certain period. You did apply for a retroactive forbearance/deferment prior to your late payments. Due to unknown/unspecified/other reasons your deferment/forbearance was not approved until after your late payments, resulting in negative marks on your credit report. 

See the above analysis – same arguments. However your position is stronger under these circumstances – you will argue that for some mistake by the lender – your request was NOT processed on time. As a result of their failure to process your request on time for a deferment – the delinquencies should be updated to show the current information – that you are up to date with payments during the period that the retroactive deferment applies. 

Ultimately – it boils down to the simple – if the current information shows that payments are up to date – for example – from January of 2010 through March of 2010 – a CB cannot report delinquent payments because of outdated information. Section 63 of FCRA was enacted precisely to prevent inaccurate or outdated information. It was intended to impose a duty on furnishers of information and CB to update information that is being reported. 


 

Message 3 of 4
Anonymous
Not applicable

Re: HELP getting fedloan delinquent payments off credit score!

Consolidate your loans and will pay these old student loans and will be a plus on your cr. In addition by consolidating you will be able to take advantage of the REPAYE repayment plan which is based on your Annual Income and family size and also after 240 months of payment any any remaining balance will be forgiven.

I am a student loan consultant and I hope this helps
Message 4 of 4
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