I'll try to make this as short and clear as possible.
I graduated in 2007 with 2 Perkins loans from 2 different colleges. Both were handled by ACS education. Both were eligible for cancelation because I work full time in a designated career field. July 1st 2012 was when the final cancellation was applied, and both accounts are now shown as full paid off, obligation met.
In 2011 the paperwork for one of the loans became messed up. Someone the cancellation was only applied to 1 loan, and not the other. Many many times I sent in copies of what they needed, only to have them again, apply it to the “other” loan, not the one that was messed up.
Fast forward to the beginning of July 2012. The trouble free loan is showing as completely paid off, obligation met. The loan with issues is FINALLY closed, and the last 2 years of cancellations are applied correctly. July 15th I receive a letter from ACS saying that both loans are cancelled. July 16th I receive a loan from the DoE saying I owe them $3500 for my defaulted loan.
I have spent multiple hours on the phone between DoE, ACS, and now the college which problem loan originated from. I can’t get a straight answer on who started the default process, who can fix it, and what will happen to my credit report.
Currently my EQ credit report is showing the loan as being last as of January 2011. But on both the college side and the ACS side, it’s paid on time and closed. It sounds like I’ve finally made headway on getting it straightened out—I filed a dispute which allows the college to respond and “fix” the mistake.
I guess what I’m wondering is what are my chances of getting this removed from my credit? The loan was never late. There were issues handling the paper work that were beyond my control. But reading stuff on here as me scared re: changing what was reported in the past. What do you think?
I’ll be relieved once the DoE stops sending me bills for money that I don’t owe, and I’ll be ecstatic if I can get this removed from my credit report.
Thanks for any input or experiences!
If you feel like you've exhausted your best efforts to get the school and loan servicers to help you, I think your next steps would be to contact the Consumer Financial Protection Bureau (they have a tool on their website for reports) and also to contact the Student Loan ombudsman. Both of these offices have people who can help you navigate the process and get to someone who can fix your issue. If you have documentation, they should be able to get things set straight for you, hopefully without too much more trouble.
Thank you for the information. I've spoken with the school again and they still can't seem to get things figured out. So it looks like I'll be researching the options you gave me. Thanks again!