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Posts: 7
Registered: ‎04-05-2013
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Sallie Mae: Debt being pd thru insurance

Hi everyone.:

On my TU report, I notice that Sallie Mae is reporting "Debt bein gpaid thru insurance; claim filed with government". Now, my loans did go into default, for roughly 6 months and thankfully i was able to catch it and Direct Loans then serviced my loans. In fact I have more loans now (post default) as I am in grad school.

The issue I have is, that the Sallie Ma's statement sounds like it is presently being paid through insurance and that is not the case. I see US Department of Education listed under my Satisfactory section as having my loans (although they were with Direct Loans before) and they are in deferment until 2016.

Can I dispute that incorrectly reported Sallie Mae information?

Also should I start my repayment on my deferred loans? I will be finished with school in July. I have $66k in student loans and I really want to aggressively pay this to get the, out of my life!
Valued Contributor
Posts: 1,653
Registered: ‎06-09-2008
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Re: Sallie Mae: Debt being pd thru insurance

Did you rehab the loans?  If so, Sallie Mae should remove the default notation.  If not, (it sounds like you may have just consolidated them), then the notation will remain on your report unless you can get them to GW it off.  I know it sounds "active" but that notation is just one of the many ways that lenders have of indicating that they reported your loan in default and transferred it back to the DOE for collection, I doubt any of them are worse than the others.  Is the tradeline correct otherwise? Does it show the loan as closed/zero balance?  If so, you'd be disputing an accurate account.


If you are loans are unsubsidzed, they are accruing interest now.  The sooner you start paying, the less interest you will owe over the life of the loan.  If you can make payments now, do so, your lender will accept them even though you are in deferment.

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