Paid Defaulted Student Loans Can They Be Goodwilled?

[Madoffed]

Update.  They didn't remove the derrogatory items, they put me in a loop between the ombudsmans office and DRG.  Sounds like they're going to screw me...

[Madoffed]

Update 2.  They did remove it after all!!  2 of 3 CRAs got it right.  Equifax has not removed it as yet.  Spoke with Dept. of Ed. and they said I should dispute it with Equifax and it should be taken care of when they go to verify.  The agent I spoke with did say that it was extremely rare for them to do what they were doing for me.  As in, he'd only heard of one other case.  So, ymmv.  I'll post one more time when - hopefully - Equifax removes it as well.

[Madoffed]

Update 3:  Came back on one CRA, now Experian is the only one that has removed it.  So frustrating.

[Madoffed]

Another Update:  On the advice of the Dept. of Ed. I disputed the debt so that they would have the opportunity to remove it for me.  Trans Union did so this weekend.  Ponied up another $20 so my app would show me that shiny new score well into the 700s...did not move a single point for removal.  Ahh well, having the derrog gone feels good enough.  Is it possible that the negative effects of that derrog were perfectly balanced with the positive effects of such an old debt that its removal had zero impact??

[Madoffed]

Update 4:  As you can surmise from my signature line, one of the agencies will not remove even though the Dept. of Ed. has instructed them to do so.  Filed the dispute, they put it under review...changed nothing.  Lame.  About to spend the hour on the phone it will take to get the Dept. of Ed rep up to speed, then file another dispute.  Don't let the bastards grind you down.

[jacksont1981]

I really appreciate you keeping this thread up to date. Its really helpful for others to see how all this works and how extremely tough it is to get the DOE to fix anything on your credit let alone delete it LOL

[Anonymous]

Glad I found this thread. I'm in basically the same exact situation. Long story short, I had 14 individual student loans (disbursements) for doctorate school totalling approx $165k. Deferred them and then was financially strapped for awhile and the loans went bad. Got my proverbial crap together and finally faced the music. Balance for principal and interest had grown to $225k at the beginning of this year, along with another $60k in collection fees added on top. 

I was able to get the collection fees waived completely, but only by paying in full on the defaulted loans. At that point, they were held at 3 different collection agencies. So at this point, I've completely paid off the student loans. I owe NOTHING!!

Bad news is that during my time of burying head in the sand and hiding from the problem, the loans changed hands like 2-4 times each. What started out as 14 tradelines ballooned into 39. All 39 of these tradelines are "negative" marks even though they show balance owed as $0.

I've called companies I didn't even know ever had my loans and been told at pretty much every turn that I'm basically out of luck and sorry can't help. I fully understand that I screwed up big time and did not fulfil my end of the bargain. But at the same time, I could have rehabbed them and probably never paid the entire loan off and been in a better position credit wise. Frustrating!! Not to mention how annoying it is that I'm being punished 3 fold for the same loans/debt due to the selling off of my balance over the years. I've pretty much given up on getting rid of all the negatives at this point. Just wanted to share my pain and maybe make some others in the same boat not feel like you're the only ones