Retro Deferment remove 30-day lates?

[MBOhio2]

My husband had 4 SL accounts that were reported 30 days late to the CBs on 01/31. However, last week he was approved for a deferment on these loans that now dates back to before the time that the loans were 30 days late. When the creditor (AES) updates their reporting with the CBs next month, do you think they'll remove the 30-day lates? ARe they required to since now, the loans were considered in deferment at that time?

I'm going to wait to see what happens, but I'm trying to prepare myself for the worst case scenario where I have to fight with AES over this.

[Anonymous]

short answer, yes.

the report will look as though the forbearance started before the lates happened.  if there was no payment due, the payments could not have been late.

if they do not erase the lates, start writing letters.

in the meantime, do not dispute the accounts.  let them adjust on their own.  if you eventually have a dispute, write directly to AES, not the CRAs.

[MBOhio2]

Thanks for the insight... waiting to see what happens and then, if needed, disputing with AES was my exact plan!

[MBOhio2]

As an update, it looks like the forbearance did not cover the first 30-day late. We still need to figure out the exact time when the forbearance went into effect and compare it to when the account officially became 30 days late, but it looks like it may have been our mistake and the forbearance did not cover that first late payment. If this is true, is the best approach a GW letter requesting deletion of the 30-day late?

[Tazman81]

Yep, if the forbearance didn't cover that date, then it would be best to try to GW.  Unfortunately not many people have had success with student loans and GW letters, but it still doesn't hurt to try.  I would first try to determine the dates to see if you have an avenue that way as it would probably be easier to have the 30day late removed if it was their error.

[MBOhio2]

MDfive & others - This month the SL lender updated my husband's credit report (now says account is current & in forbearance), but the 30 days lates remained. So I reached out to the lender and asked for 1) the date the forbearance was backdated to; and 2) the date the account became 30 days late. I also explained that I understood the forbearance would cover all past due payments and therefore, no lates would exist.

Here is the the reply we received:

Thank you for contacting American Education Services (AES). Your request for a forbearance was approved and applied to your account on February 16, 2011. A forbearance will cover any payments that were past due however it will not remove any negative credit reports that were submitted to your account as you are still responsible for the payment of your account until a deferment or forbearance is approved and applied to the account.

You were negatively credit reported 30 days past due for your payments that were due on December 21, 2010.

This response from AES is in direct contrast with the advice others provided below. Does it appear that their reporting is actually incorrect now? How should I proceed?

[Tazman81]

Though other peoples experience may have been different from yours I am not too sure if you have any recourse here. Do you have a copy of the forbearance paperwork? It may have a clause in it which explains that you are responsible for all payments until the forbearance has been approved, which sounds like what AES is saying as well.

[Anonymous]

hmm.  my sallie mae experience was different.  i'm sorry to hear that aes is defining forbearance in that way.