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Posts: 68
Registered: ‎08-21-2013
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Need help removing old student loan TLs...

[ Edited ]

I have two TLs on my credit report relating to some old student loans and I’m wondering what the best next steps are.  I’ve attached images of the TLs as appoint of reference:

 

So here’s the story:

 

Many moons ago Xpress Loan Servicing held my student loans.  Since then I rehabbed with AES and am now in good standing with them.  Intending to contact XLS to plead for mercy and/or have them remove the TLs since they no longer owned them, I went digging for their contact information only to learn that effective 3/14/2011, all XLS loans were transferred to AES.  So now, I’m guessing these TLs are for the same loans and am wondering what to do with the ones from XLS.  Do I dispute with the CRAs?  AES?  Do I even have a leg to stand on?  Any help will be GREATLY appreciated.  These baddies were questioned on my call for my CLI with BOA so I guess they are still having somewhat of a negative effect so I would love for them to get gone.

 

Thanks in advance!

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Re: Need help removing old student loan TLs...

If you rehab'd, the default notation is supposed to be gone, and some lenders will remove the old tradelines entirely.  Not what I usually advise, but since the company is out of business, and AES isn't generally super-helpful or responsive (at least to the folks who post around here), I'd jump straight to disputing it with the CRAs.  Hopefully they won't be able to verify and you'll at least lose the notation if not the whole negative tradeline.

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Posts: 68
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Re: Need help removing old student loan TLs...


SCF wrote:

If you rehab'd, the default notation is supposed to be gone, and some lenders will remove the old tradelines entirely.  Not what I usually advise, but since the company is out of business, and AES isn't generally super-helpful or responsive (at least to the folks who post around here), I'd jump straight to disputing it with the CRAs.  Hopefully they won't be able to verify and you'll at least lose the notation if not the whole negative tradeline.



Thanks, @SCF.  That's something I'm definitely considering.  I really appreciate your feedback!

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Fico Scores: EX 677 (11/13) | EQ 684 (10/13) | TU98 708 (10/13)
Last App 1/2015 | Goals: Reduce util and obtain BT card to cut down on interest
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Registered: ‎07-28-2014
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Re: Need help removing old student loan TLs...

I have a smiliar issue.  I was with xls and they got bought out by Aes.  I have two federal loans that went into default in 2009 and show several 120 day lates between the two of them.  I was in the peace corp and in deferment but this never was processed correctly.  I did eventually get a back deferment. 

 

I refianced the loans with Mohlena and have been current ever since.  But I believe these closed collections are still hurting my credit score 5 years later.  They are scheduled to delete in 2016. I dont plan on making any major purchases until then but I was curious if I should dispute the payement history on the closed collections with Aes and XLS?  I have read where sometimes this can actully result in an update of the debt and hurt your credit score even more?  What should be my next move?

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Re: Need help removing old student loan TLs...

Did you rehab your loans or just consolidate them?  Rehab offers credit improvement benefits, but you have to make 9 on-time payments to the collection agency before your loan is rehabilitated and the default notations are removed.  With consolidation, your loans come out of default immediately, but you don't get the same benefits.  If you just did a consolidation the collection accounts and default status on the original tradeline can remain for the 7 to 7.5 year reporting period.

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