01-06-2014 07:12 PM
I originated 7 student loans during school, some a couple hundred and some in the thousands. All of which were bundled up and sold to Nelnet prior to graduation. While in graduate school (2006-2007), I was granted forebearance from the loans. I landed a job, moved away and started working in May 2007. I made the mistake in not notifying Nelnet of my new address and lost track of the forebearance deadline. After checking my credit report in the fall of 2007, I realized there was a problem. Nelnet had reported to the bureau's that I was 90+ dpd and not only that, I was 90+ dpd on all 7 loans. There were 7 separate items of delinquency, all adversely impacting my score. Now, I understand that I should take responsibility for not updating my address and understanding the forebearance period at the time. BUT, I feel slighted by the nature of the reporting process. From my standpoint, I missed ONE payment, NOT 7 payments. This simply doesn't accurately reflect my credit worthiness. Because of this reporting method, my credit has been stuck under 650 for the past 6 years. My report still shows each of these items which I'm still paying on. It displays each as (Current, was 90 dpd).
My question is whether anyone else has experienced a similar issue. I'm wondering when, if ever, the negative reference to the 90 dpd will be removed?? I tried to write the letters to the bureaus, claiming I was not properly notified, but it didn't work. Does it benefit me at all to pay these loans off completely? Starting with the smallest balances, if they let me do that?
Thanks so much for any help anyone can provide.
01-06-2014 07:42 PM
Pretty much everyone has multiple loans when they graduate because the money is actually disbursed on a semester or annual basis. It's one of the reasons why it's so important to stay on top of student loans - they can do a lot of damage to your report if neglected.
The good news is that negative items can only remain on your report for 7 years, and it sounds like you should start to see them fall off in the fall of this year. It can take up to 7.5 months for the baddies to fall off, but once they are gone, you'll be left with the positive payment history you've built over the past 6 years and a good boost to your score.
Paying the loans off won't have much impact on your score - these are installment loans and don't really factor into your utilization. If you do want to pay some of them off though, Nelnet should let you choose which loan to apply any extra payments to through their website. Or you can call them and make a payment that way.
It sounds like you're on the right track, and should be seeing the benefits of your hard work soon.
01-07-2014 03:46 PM - edited 01-07-2014 03:49 PM
Yeah, each of the loans is a separate tradeline, so they're reporting accurately.
You might try a goodwill letter or email to an account executive there. Instead of accusing them of not informing you, try asking humbly and politely to make an adjustment to your reports, omitting some or all of the late payment history. I don't know about Nelnet at all, but I had success doing that with one of my loan servicors.
Paying any of the loans off completely won't make the delinquencies go away.
Getting back to your late payments, It's weird that you're under 650 and the 90 day lates are all 6 years old.
Late payments hurt, of course, but they hurt less and less over time. If they're all 6 years old, they shouldn't be hurting you too badly now.
I'm assuming you have other problems on your credit report. You should check them out.
02-08-2014 01:15 PM
The same exact thing happend to me with NelNet ... and my situation was almost identicalto yours, being that I had moved and forgot to updatenew address and contact info with NelNet .... I was sooooo confused just as you because even though I had 9 individual student loans, the entire time they were in deferment, NelNet ONLY reported ONE paid as agreed BUT the moment I become late they report it NINE individual times...... I was super pissed, and there is NOTHING we can do about it. Unlike you, however, mine were more recent (2012) so I have approx 5 more years before they begin to Fall Off My report .... In the meantime I have to suffer with the 100+ point DROP in my credit score because of the 9 individual late reporting smh