Sallie Mae Not Removing Old Delinquencies

[jthechamp]

Hi All, 

Hopefully someone here has suffered through the same thing and will be able to help a brotha out. 

I went through a Student Loan Rehab program in 2009. I was told that after successfully completing the program, all past negatives would be removed from my report. I made all the payments and have been up to date on my federal loan since. 

Pulling a current report last week, I see that the 4 loans (which were actually consolidated in 2005 and should be reported as 1 loan), are still showing on my report and keeping me from jumping over that 740 line. I called Sallie Mae and they told me I needed to call USA Funds, the current owner of the loan to dispute. USA Funds then informed me that I was current, always current, and it's up to Sallie Mae, the original creditor, to remove any negative reports (the reporting agency on the CR is Sallie Mae). So, I call back Sallie Mae and they inform me that I was last late on this loan in '07 and it will stay on my report for 10 years. I then tell them I was told that after rehab, all would be removed, etc etc. I am currently writing up a dispute letter in the hopes of getting all of this sorted. Does anyone out there have any similar experiences and/or advice? Much appreciated.

[IOBA]

Did you consolidate your loans before or after the rehab?

[jthechamp]

Loans were consolidated before the rehab

[currentlywinning]

Bumping- Id love to know the answer as well!

[IOBA]

jthechamp - the way I understand it, you were misinformed.

Because you consilidated the loans BEFORE you did the rehab, and the lates were BEFORE you did the consolidation, they will stay on your CR for the 7 yrs.

If you had done the rehab with Sallie Mae before consolidation, then Sallie Mae could have updated your report to remove the negatives.   They can no longer do that since they no longer own the loans.   (And they didn't own the loans when you did the rehab.)  When you consolidated the loans, you took Sallie Mae out of the picture and inserted the new lender.   The new lender did the rehab with you.   They can not go back and change what Sallie Mae reported.   

You could try to GW Sallie Mae and ask them to review that you did complete a loan rehab after you consolidated.  They may or may not be willing to update.

My personal experience with Sallie Mae is that once the loan is paid off on their books, they stop reporting period. 

[jthechamp]

Thanks for the reply. I am a bit confused though. When I did the consolidated, it was with SM, not the new lender. Does that make a difference? I did the rehab with a new lender, yes that is true. But since SM no longer owns the loan, can they still report? As you said, in your experience, when the loan is off their books, they stop reporting it. 

[IOBA]

jthechamp - When you consolidated the loans into one loan, it created a new loan number.   The old loans will still report for 7-10 yrs (the baddies will naturally fall off at about 7 yrs).  The old loans don't disappear becuase you consolidated.

My personal expereince with Sallie Mae is that they reported "PAID" balance zero, and never, ever, ever updated my CR again.   The last entry was to update to paid.   

That being my experience, I sincerely doubt that Sallie Mae will ever go back and change anything on the old account numbers/old loans.

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When I did the consolidated, it was with SM, not the new lender. Does that make a difference?   In this case, I sincerely believe it was because you consolidated BEFORE you did the rehab that the baddies will not be removed.

I did the rehab with a new lender, yes that is true.  The new lender can't change what happened on the old loans.   SM doesn't go back and update closed accounts.  (The accounts closed when you consolidated.)

But since SM no longer owns the loan, can they still report?  The old loans will still report for 7-10 yrs.   The baddies should fall off in about 7 yrs, give or take a month.  SM no longer UPDATES the accounts, but they are still on record with the CB's.   You should be able to see the last date SM updated, which should be about the time you did the loan consolidation.

As you said, in your experience, when the loan is off their books, they stop reporting it.   They stop UPDATING the account.  The accounts are still on file with the CB, they just don't get new information from SM.  

I think you are stuck with the lates.   After two years, they loose potency on the FICO score.   They will still affect the score, but it won't hurt as much.

[poohda23]

That is not always the case, I have an old student loan with Sallie Mae that was consolidated and closed 2/04.  Sallie Mae is still reporting late payments on my credit report.  They informed me that I would need to contact AES about the late payments and dispute them.  I was informed with AES that is incorrect and I need to contact Sallie Mae.  My question is if Sallie Mae closed the account in 2/04 how can they report late payments to present date, and how can an account that closed 2/04 still be on my credit report.  I have tried disputing the information and have had no luck.  Any suggestions?

[laz98]

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@poohda23 wrote:

That is not always the case, I have an old student loan with Sallie Mae that was consolidated and closed 2/04.  Sallie Mae is still reporting late payments on my credit report.  They informed me that I would need to contact AES about the late payments and dispute them.  I was informed with AES that is incorrect and I need to contact Sallie Mae.  My question is if Sallie Mae closed the account in 2/04 how can they report late payments to present date, and how can an account that closed 2/04 still be on my credit report.  I have tried disputing the information and have had no luck.  Any suggestions?

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As long as the account was not charged off, it can stay on your reports 10 years or sometimes a bit longer.  The late payments should drop off at their respective 7 year marks, though.

[poohda23]

How can they report late payments after the loan was closed?  They are not reporting lates prior to 2/04, they have been reporting lates from 2005 to 2012.  When I called them I was told that they do not show they are even reporting on my credit report