New Member
lonerganb
Posts: 3
Registered: ‎08-03-2012
Direct Loans and Cornerstone both reporting balances

I had 2 student loans through Direct Loans, which have been transferred to Cornerstone.  However, all 4 loans are reporting balances on my Equifax and Experian reports. Shouldn't Direct Loans be reporting as transferred with a  zero balance instead of open/never late with a balance?

 

How is this affecting my credit score? How many points is this decreasing my score? Wherein it looks as if my installment account balances are essentially doubled which would have a negative effect?

 

Also, all 4 are reporting a higher balance than what the credit limit reports; should this be changed? Is this affecting my credit score?

 

Any help or advice would be greatly appreciated.  I am in the process of obtaining a mortgage and just realized this possible double reportings and am wondering if this will help my score if corrected.

Established Contributor
thankfulheart
Posts: 618
Registered: ‎09-26-2011
Re: Direct Loans and Cornerstone both reporting balances

Not so much score, but you will take a hit on your DTI if all 4 loans are reporting a payment due.  I had to contact the Ombudsman office to get their assistance with DirectLoans that were paid off in consolidation.

Starting Score: 10/1/2011 EQ 568 TU 593
Current Score: EQ 664 TU 700 EX 701 (FAKO)

Regular Contributor
tburns
Posts: 151
Registered: ‎11-04-2010
Re: Direct Loans and Cornerstone both reporting balances

I have the same thing going on with Direct Loans and Mohela, On EXP and EQ it shows I have 5 loans open at once not the 2 that reality reflect.

 

Direct Loans had my 2 loans under 1 tradeline, Then last fall they split them into 2 loans and backdated it. Helped my AAoA's a ton but only showed closed on TU for the first loan. Then at the beginning of the year they transferred them to Mohela and to date they are still shown as open on all 3 from Direct Loans along with Mohela.

 

So my Installment debt is killing my DTI, I was denied a loan a few months ago due to it. My actual installments should be 18k (10k Car and 8k SL) But on 2 reports it shows I have over 39k installment debt.

 

I tried to contact Direct loans last month and their response was "We'll continue to reports loans and if a payment is late it will be reported" So apparently they didn't read my message.

Established Contributor
thankfulheart
Posts: 618
Registered: ‎09-26-2011
Re: Direct Loans and Cornerstone both reporting balances

tburns wrote:

So my Installment debt is killing my DTI, I was denied a loan a few months ago due to it. My actual installments should be 18k (10k Car and 8k SL) But on 2 reports it shows I have over 39k installment debt.

 

I tried to contact Direct loans last month and their response was "We'll continue to reports loans and if a payment is late it will be reported" So apparently they didn't read my message.


Read this page: http://studentaid.ed.gov/repay-loans/disputes

Then, contact the ombudsman office.  They were a great help to me (although somewhat slow) when I had the same issue. 

Starting Score: 10/1/2011 EQ 568 TU 593
Current Score: EQ 664 TU 700 EX 701 (FAKO)