08-28-2013 01:18 PM
Hello I have some questions regarding my student loans. I know there are government loans and private loans. My government loans were garnished until a certain period of time, and then I proceeded to pay them off (on top of my garnishments). The private loans are held through Sallie Mae, and being that they're private they do not garnish. Instead, Sallie Mae has continued to hit me with very high interest rates at which are doubling and tripling my total amount due over the years. I can no longer run and hide, the more I hide the sooner my loans reach $100k mark. I am confused and not sure what to do, it seems if I start paying I will simply be paying the interest for years and years prior to even touching the principal amount due. Onto my question, and I have to ask because I don't know what to do. I have been told by many people that after 7 years and (3-4 months) private loans will fall off of my credit report. I am coming here to see if there is any truth to this and or what I should do to increase my score.
I'm financially stable at this point and need to get the credit score addressed immediately for it is affecting many points in my life. If this means tackling the loans head on, then so be it. It will be a long while before they are paid, but if that's what needs done so be it.
If you all tell me I should start paying them, will I see a increase in my score once I start making payments? Thanks all, sorry it's so brief but figured you didn't want a long read. Thank you all, if there is any information you need please let me know. Apprecaite any advice you can offer I'm simply looking for the most cost affective and best way to increase my score. Sadly I didn't even finish college due to a job offer at which I couldn't pass up and I am currently still employed with said company.
08-28-2013 01:27 PM
Welcome to the forums !
I am going to move this post to the Student Loans forum for better feedback.
08-28-2013 03:28 PM
Negative information does come off your credit report after 7 to 7.5 years from the Date of First Delinquincy (DOFD), which is the first time the loan went into a negative status and was never brought current again. You can usually find a DOFD or "Scheduled to Report Until" date on your report for each tradeline, and that will give you a good idea of when you can expect negative information to age off.
Private student loans, unlike federal loans, are subject to the statute of limitations, which are set by each state in their laws. The SoL can vary widely from state to state, so you'll have to do some research about what they are in your situation. Once the loans are outside the SoL, Sallie Mae can no longer collect on them, but until then, they could sue you to garnish your wages or take other collection action. Certain actions can also reset the SoL in some states. I'd poke around the Rebuilding Your Credit forum and look for resources specific to your state to decide how to proceed.
In and of itself, starting to make payments won't bring your score up immediately. It will help slowly, over time, and lates aging and eventually falling off your report will provide gains as well.