Student Loan Transferred;concern for late payment reporting

[Beasley12]

Previously, my student loans were serviced by Direct Loans and they do not report until the account is 90 days late.  I know this because I tryed to GW a late from a few years back and they stated that they do not report late payments until 90 days late and that my late was at least 90 days.  Well, I found out a few days ago that my loan was transferred to Fedloan Servicing.  The problem.....my loan with Direct Loans was late 19 days at the time of transfer.  I called FedLoan Servicing and was told that I can not make a payment because my loan is not set up in their system yet and that if I make a payment to Direct Loans, they will not receive it until 60 days later.  They did mention that during the transition my loans are in a "transfer forebearance".  I HOPE that means that when my loan is completely set up they will not report the 30 day late since my loan was only 19 days at the time. 

THE PROBLEM: I am in the middle of buying a HOME! I am worried that once FedLoans set up my loan in the system they will trigger an automatic 30 day late. 

Someone with knowledge of this kind of thing please help me to understand this and/or how to proceed....please

[SCF]

Stay in contact with Fedloan Servicing so that you know immediately what your next payment due date is when they set it.  That way, you can be sure that first payment comes in on time.  You could also find out from them what the start date on the transfer forbearance is, and try to get that documented in writing.  That way, if they do report a late for a payment that was due in that timeframe, you'll be able to get it corrected.

[bahbahd]

Pretty certain that any few days late on a transferred loan will not report. Your prior loans are going to reflect an entire payoff with $0, you won't be able to send a payment to previous servicing agent. The new loan accounts with the new servicing agent are going to be put into a new billing cycle with new due dates. I am pretty sure you are in the clear. Just watch for the next payment due date with your new servicing agent. If forbearance or deferment is what you want, you still might have to pay the next due so you don't get behind before the paperwork is processed.

[Beasley12]

I also wonder if they will report the loans as new or use the original dates. Anyone know how it works with the dates?

[bahbahd]

The loans will report with the original dispursement dates as the originating dates. It is actually great for AAoA. 

[Beasley12]

Thank you so much for the info bah.....I was concerned about AAoA. WHEW!

[Quazar]

I have the same issue or concern. Just recently found out that Direct Loans servicing transferred my loans to FedLoan.org I had just recently went into re-payment with Direct, unable to get a forbearance and not able to start payments, so I immediately got 2 months behind. I talked to a rep at Direct about the situation as it was unfolding and she told me they don't report to CSR's until 90 days late, and helped me establish a set of repayment dates and amounts that I could catch up with a few months. So I made a few payments, but still not 100% caught up, when the loans got transferred. They were in limbo for almost 30 days, and finally when I was able to access the data with FedLoan and they were able to see the account, they are showing I'm 43 days delinquent. I explained the situation and told them I could pay half the past due now, and the remaining on July 19, 2013 (with July 21, 2013 as the due date for nect payment) ...but instead of them agreeing to that they said they could give me a "transfer delinquency forbearnace" .... I'm leary of how this might actually turn out. They said they would place the forbearance on the account, that would then bring it current and over the past due amount, then starting July 21, 2013 I can start fresh and just pay my normal payment of $261 .... but ever time I tried to get a very specific and direct answer to my question if they have or would still report the 43 day late on my credit report if I go with this option .... she wouldn't answer ...but only say the forbearance would "take care" of the delinquency and bring me current and I would only have to make a normal payment starting $261. So, not wanting to look a gift horse in the mouth ....and if transfer delinquency forbearance will really clear in past lates, NOT be reported, and allow me to start fresh ...that's great. But I have this fear that they are going to report me as having been 43 days late to the CSR's, and just start reporting as of July 2013 I was current again. I would rather go scrape up the total due right now ($459) and pay today and have assurances nothing is reported as late or negative ....but when I offered to do that the Fedloan rep said no need to do that ...she will enter the forbearance and it will "cover the delinquency and allow me to start making my normal payment ..." Any opinions or anyone else expeience this? Anyone take this offer of transfer delinquency forbearance ...and have a positive outcome, i.e. nothing negative reported?

[bahbahd]

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@Quazar wrote:
I have the same issue or concern. Just recently found out that Direct Loans servicing transferred my loans to FedLoan.org I had just recently went into re-payment with Direct, unable to get a forbearance and not able to start payments, so I immediately got 2 months behind. I talked to a rep at Direct about the situation as it was unfolding and she told me they don't report to CSR's until 90 days late, and helped me establish a set of repayment dates and amounts that I could catch up with a few months. So I made a few payments, but still not 100% caught up, when the loans got transferred. They were in limbo for almost 30 days, and finally when I was able to access the data with FedLoan and they were able to see the account, they are showing I'm 43 days delinquent. I explained the situation and told them I could pay half the past due now, and the remaining on July 19, 2013 (with July 21, 2013 as the due date for nect payment) ...but instead of them agreeing to that they said they could give me a "transfer delinquency forbearnace" .... I'm leary of how this might actually turn out. They said they would place the forbearance on the account, that would then bring it current and over the past due amount, then starting July 21, 2013 I can start fresh and just pay my normal payment of $261 .... but ever time I tried to get a very specific and direct answer to my question if they have or would still report the 43 day late on my credit report if I go with this option .... she wouldn't answer ...but only say the forbearance would "take care" of the delinquency and bring me current and I would only have to make a normal payment starting $261. So, not wanting to look a gift horse in the mouth ....and if transfer delinquency forbearance will really clear in past lates, NOT be reported, and allow me to start fresh ...that's great. But I have this fear that they are going to report me as having been 43 days late to the CSR's, and just start reporting as of July 2013 I was current again. I would rather go scrape up the total due right now ($459) and pay today and have assurances nothing is reported as late or negative ....but when I offered to do that the Fedloan rep said no need to do that ...she will enter the forbearance and it will "cover the delinquency and allow me to start making my normal payment ..." Any opinions or anyone else expeience this? Anyone take this offer of transfer delinquency forbearance ...and have a positive outcome, i.e. nothing negative reported?

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I think what you are wondering is if they are going to report 30 days late, which they would already be reporting if they were going to. You need to find out if they normally don't report until 60 or 90 late as a standard policy.  Right now you are 30 days late. Typically a retroactive forbearance does not overturn past late payments.  The key here is do they normally report 30 days late or not? My guess is they do not report 30 days late and the transfer forbearance that they are offering you will bring your account current and start off with a regular payment due on your next due date just like the CSR is stating.  

[rd2rebuilding]

you'll be fine. I had my loans transferred to fedloan from nelnet because of going under the PSLF program. My payment was due on 5/28 with Nelnet. When I went to pay it, I couldn't because balance had been paid off for transfer. By the time I had gotten any paperwork from Fedloan my payment was already 3 weeks late. On top of that, my IBR payment status didn't automatically transfer over, so I couldn't pay the past due and current amounts that Fedloan wanted. I called them, and was placed on a forebearance until the end of July that way they had time to process my IBR documents. Fedloan still hasn't tabulated the amount of credits I have towards the PSLF program, but my loans have been transferred several times, so i fathom it will take some time :-). Anyways, my next payment isn't due until August 28... so I'm happy about that.

[Quazar]

And they didn't report you 30 days late or anything?

That is my main concern....because as of today since they just got this setup I could fimd a way to catch it all up and take away any possibility they could report, but if I take it on good faith and let them do the transfer forbearance....I just wanted more assurance or "feel good" words from the csr that they will NOT report any late negative trade line by going the route of not paying now and waiting til July to make a fresh start on payments.

I went through some very rough years after a nasty divorce and BK and am finally on track again with good payment histories and my scores coming back up. Need to buy a house in next couple of months and don't need anything at this stage to set me back again.

Especially since the original student loan was only reporting as One tradeline several years ago and about 6 months ago they split it up and is now 20 seperate items on my credit report.

So that means them reporting a single 30 day late would now affect 20 trade lines on my credit report and that would devastate my entire file snd prob sink my score down into low 500's ir possibly high 400's.....I just can't have that happen because they loans got transferred and I coildn't access them for nearly a month.