what happenes once you pay a defaulted student loan off?

[memee1978]

my student loan is in default.what happens once i pay the ampunt in full out?

[LynnInMN]

When you pay your account off, it will be marked as a paid default/collection, whatever the language is on that credit report.  It will naturally age off 7 years from the claim paid date.

[Anonymous]

I paid a defaulted SL (Sallie Mae) and my account now says paid as agreed.  There is nothing on my reports to suggest that I was ever in default.

[LynnInMN]

---

lawskool09 wrote:

I paid a defaulted SL (Sallie Mae) and my account now says paid as agreed.  There is nothing on my reports to suggest that I was ever in default.

---

Federal or private loan?? It is absolutely impossible to default on a federal loan and have SM report as paid as agreed.  They will file a default claim with the guarantor.  Even if rehabbed back to SM, a new tradeline will open with the old one still appearing.

[Anonymous]

It was a federal loan.  It's the only TL reporting.  I'm not sure why it's reporting that way.  I assumed it would report like you stated above....

[weezie]

Yep, I've had the exact same experience as Lawskool. Federal loans with SM in default for almost 2 years. As soon as I started paying again, it was like the loans had never been in default. No duplicate tradelines, no "default" or "collections" tag.

[memee1978]

i finally paid it off last month.I'm waiting for the status to reflect in my fico report and score.