Ok... so this situation is a bit odd. I was unable to further defer a CitiAssist private student loan after graduating from grad school in 2009 and as such it defaulted in June of 2009. Of course as most significant securitized debt, it was insured. As such Citi made a claim with the bond insurer who subsequently paid the thing off. I have had some half hearted attempts on the part of collectors to collect the debt including offers of 50-60% off and such, but I have not done it because I didn't have enough property for them to really do anything to me. I live in Texas where wage garnishment can not occur unless by government and up to 30k in personal property assets is judgement proof. We also have 4yrs for contracts, so I think under state law they'd be out of luck anyhow, though I'll cross that bridge if anyone ever tries to sue me. My question more pretains to the reporting to the CRAs. It is listed as "Collection Paid", but in the status reasons it is listed as "Government Debt; Government secured guaranteed; Defaulted, Closed 11/09." I am going for a mortgage and I was concerned this would upset the mortgage company. The mortgage banker didn't care and got the pre-qual no problem based on my other financials and considerable income (now) and low debt/income ratio. If this poses a problem further down the line I will definately dispute with "Student Loan Corporation SLC," but I'm wondering if anyone else has had this and if they have disputed it and what did the status change to? Did they just delete the comments in the comment field? Again... please understand the nature of my question. A government default and a private default in which a bond insurer, not the government, made payment are two different things. Reporting the later as the former seems like a serious fraudulent status to me.
