Student Loans

[strong_lady]

Hello Everyone

I have accounts with United Student Aid Funds as well as with the CT Student Loan foundation.  They are all reported as being closed.  Will taking them off my credit score decline or improve my score?  Also...I also have one from Cals that says " charged off as bad debt" however.. Im 0 days late ?

This account is also closed?

Any information would be greatly apprecaited

Thanks

Strong

[LynnInMN]

The Higher Education Act requires that these accounts report for 7 years from the default or claim paid date. If you dispute the, they will simply come back as verified as they are valid tradelines.

[Wonderin]

TBH, I don't think anyone can give you a straight "yes" or "no" with the info you've given.

For one thing, how OLD are these accounts? Are they "closed, with lates" showing, or just closed? Are they charge-offs?

Also, if they're just loans that were paid off by a consolidation loan, they're supposed to stay on there, they should just be marked "paid and closed."

Hubby had a total of about 8 loans in his 6-7 years of schooling (each one about $4K) and except for the ones that we paid off prior to consolidating, each one is still on his reports marked as "Paid, closed" ... and then the consolidation loan that paid them off is there.

In our case, we never suffered lates with those (or at least, they don't show lates!) and they add to DH's credit history length. In that area, they're good!!

[strong_lady]

---

Wonderin wrote:
TBH, I don't think anyone can give you a straight "yes" or "no" with the info you've given.

For one thing, how OLD are these accounts? Are they "closed, with lates" showing, or just closed? Are they charge-offs?

Also, if they're just loans that were paid off by a consolidation loan, they're supposed to stay on there, they should just be marked "paid and closed."

Hubby had a total of about 8 loans in his 6-7 years of schooling (each one about $4K) and except for the ones that we paid off prior to consolidating, each one is still on his reports marked as "Paid, closed" ... and then the consolidation loan that paid them off is there.

In our case, we never suffered lates with those (or at least, they don't show lates!) and they add to DH's credit history length. In that area, they're good!!

---

They are about 5 years old.  They have been conslidated but are still being read as charged off as bad debt then paid in full? 

[strong_lady]

---

LynnInMN wrote:

The Higher Education Act requires that these accounts report for 7 years from the default or claim paid date. If you dispute the, they will simply come back as verified as they are valid tradelines.

---

That sucks!!! thanks for the information though (laugh)

[Wonderin]

Then everything seems to be as it's supposed to.

I agree that it sucks (oooh, trust me, I do!), but its actually the right thing, as much as it sucks (sucks enough to mention twice!).

Now, what I'm not sure of is whether they'll fall off in 7 years from "default" date or report for 10 (since being closed and paid in full, they might "read" as a positive account -- those stay on for 10). Anyone know????

Our SLs were consolidated back in approximately '00 and yet the original loans are still on our CRs (with the last original loan taken out in circa '94). Which, since they were paid with never late, I guess is a GOOD thing!!

[Timothy]

They should drop 7 years after DOFD.

Look on your EXP and TU reports directly from the CRA's to see the drop date.

https://annualcreditreport.transunion.com/user/returnUser.jsp

https://www.experian.com/consumer/cac/InvalidateSession.do?code=DISPUTE

---

Wonderin wrote:
Then everything seems to be as it's supposed to.

I agree that it sucks (oooh, trust me, I do!), but its actually the right thing, as much as it sucks (sucks enough to mention twice!).

Now, what I'm not sure of is whether they'll fall off in 7 years from "default" date or report for 10 (since being closed and paid in full, they might "read" as a positive account -- those stay on for 10). Anyone know????

Our SLs were consolidated back in approximately '00 and yet the original loans are still on our CRs (with the last original loan taken out in circa '94). Which, since they were paid with never late, I guess is a GOOD thing!!

---

[Wonderin]

As I understand it, ours will continue to report for another 2 years, right? Ours were closed by consolidation loan and NEVER late.

Yeesh, I hope they continue to report for another 2 years. They're what gives my hubby a long credit history length ... and they're in perfect standing!