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How to determine DOLA for default/collection student loans

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badmice1
Member

How to determine DOLA for default/collection student loans

Hello all:

I finally paid off the remaining balance of my defaulted student loan in 2010. TU and EX reports are both saying the record will fall off in 2017, and as I undestand it this baddie stays for 7 yrs and marked as "Paid collection". I am starting to get really concern about how long this is staying on. It is unclear to me what is consider day 1? Is the falloff date being calculated correctly? My original loan was opened in 1997. 

 

Secondly, does anyone have success stories or strategies on how to negotiate the "paid collection" mark?

 

many thanks

 

Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: How to determine DOLA for default/collection student loans

The information will remain on your account for 7years from the DOLA. If you already have your credit report it should list the DOLA on the account in question.

 You might have a problem getting that paid off collection mark remove. The thing is once you paid of the collection you lost all your bagging power. The collection agency is not required to remove the information from your CR, but sometime they will agree to do a PFD because they want to get paid. You can try sending them a GW letter but there is no grantee, they will remove it.

Message 2 of 5
Anonymous
Not applicable

Re: How to determine DOLA for default/collection student loans


@Anonymous wrote:

The information will remain on your account for 7years from the DOLA. If you already have your credit report it should list the DOLA on the account in question.

 You might have a problem getting that paid off collection mark remove. The thing is once you paid of the collection you lost all your bagging power. The collection agency is not required to remove the information from your CR, but sometime they will agree to do a PFD because they want to get paid. You can try sending them a GW letter but there is no grantee, they will remove it.


 

Actually, no.

 

There are various triggers that begin the CRTP when it comes to student loans.  As a result, the DOLA and also the DOFD may be irrelevant.  There are circumstances that quite commonly allow student loans to remain on your credit reports for over 20 years from DOLA or the DOFD.

 

20 U.S.C. 1080a(f):

 

Notwithstanding paragraphs (4) and (5) of subsection (a) of section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)(4), (a)(5)), a consumer reporting agency may make a report containing information received from the Secretary or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower's defaulted account on a loan guaranteed under this part until -

(1) 7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty;

(2) 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or

(3) in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan entered default such subsequent time.

Message 3 of 5
badmice1
Member

Re: How to determine DOLA for default/collection student loans

Thanks. How are these reporting timeline being determined? It looks like option #1 is applied for my defaulted loan. I think in the short team choice #2 would be more helpful in respect to how long it would stay on the CR...
Message 4 of 5
Anonymous
Not applicable

Re: How to determine DOLA for default/collection student loans


@badmice1 wrote:
Thanks. How are these reporting timeline being determined? It looks like option #1 is applied for my defaulted loan. I think in the short team choice #2 would be more helpful in respect to how long it would stay on the CR...

You have no choice whatsoever in determining which trigger event they utilize.  That's why at the end of (2) you will see the word "or".

 

You do not give enough details in your post to allow anybody to determine which of the three methods they are using in your case.

Message 5 of 5
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