topic Re: AES/Keybank Student Loan CO question... in Rebuilding Your Credit

AES/Keybank Student Loan CO question...

clemente21 — Fri, 11 Jun 2010 14:00:54 GMT

I have two student loans that were taken out with AES/Keybank on 12/1/2004. The DOFD is Apr 08.

The loans are showing up 4 times on my credit report. Here's how they are reporting:

AES/Keybank USA NA
- No Balance Information
- Account Status Closed
- Payment status is “Claimed filed with gov’t for insured portion of loan”
- Payment history ends Jan 09

AES/Keybank USA NA
- No Balance Information
- Account Status Closed
- Payment status is “Claimed filed with gov’t for insured portion of loan”
- Payment history ends Jan 09

Keybank NA
- $5,826.00 Balance
- Status Closed
- Payment Status is Charge-off
- Payment history begins Jan 09

Keybank NA
- $5,878.00 Balance
- Status Closed
- Payment Status is Charge-off
- Payment history begins Jan 09

These are 2 loans that I took out in Dec 2004 for $4500/each. Are these reporting properly? I don't understand why there's 4 lines on my credit report for two loans?

I’ve received a letter from a CA regarding these loans and I didn’t DV (I hadn’t found these forums until after I sent the first check to CA). I just sent a small payment of $100 each month since April. This month I sent $300 since I had a few extra dollars. The CA wants to settle, but of course wants a large chunk of change to settle, and I can’t come up with the cash right now. I am trying though and have kept the CA in the loop the entire time so nobody thinks that I am trying to avoid them.

Anyone have any advice as to what I should do? I’m lost here. Does the credit report look right? Also, when I do pay these off, is there any tips or tricks to have the charge-off removed? I know I can never get rid of student loans, and I’m trying to button these up and fix my credit.

Any help or advice would be greatly appreciated!

Re: AES/Keybank Student Loan CO question...

clemente21 — Fri, 11 Jun 2010 15:06:30 GMT

Forgot to add also, in case it helps, that the CA is not reporting...

Re: AES/Keybank Student Loan CO question...

Anonymous — Fri, 11 Jun 2010 16:06:36 GMT

I too defaulted a on student loan from AES in 2008. I wish I would never had done that. It was not a large payment, I was just neglectful and stupid and it has been hell fixing it.

I don't think they are each reporting twice on your credit report, there is more than once section on your credit report so it could be showing up in two different place, but it is only one entry.

Here is the approach I have taken with my defaulted student loan from AES. Mine was sent to a CA and they threatened to sue me. My balance was $5,500 and it is a private loan and there is no rehabilitating it. I believed their threats because that is a large balance and it is a student loan and they will be able to garnish my wages. They offered me a settlement for $3,500. However they refused to take the entry off my credit report if I paid. So I set up a one time payment with them (10% down I believe) and then $100 per month until it is paid in full. I have that in writing so they can't sue me, touch me or change the terms unless I don't send my $100 every month in.

I used the money I had to pay off other things on my credit report that would delete them. The damage is done from this student loan whether it is paid or unpaid it will not change my credit score any. So because they would not delete with my payment, they will get their $100 per month until it is paid off. After 7 years the entry goes away. I am going to pay this off though because the debt will never go away since there is no SOL. So I am going to ride out my $100 a month. It won't take 7 years for the damage on my score to ease and I will probably pay it off early to be done with it, but right now it is my last priority because they would not help me either.

Re: AES/Keybank Student Loan CO question...

clemente21 — Fri, 11 Jun 2010 17:08:56 GMT

Seems like we have really similiar experiences. I just can't understand why there's 4 tradelines for two loans? I think I've in other areas that a CO adds another tradeline, but I can't find any info anywhere now about it.

I'm guessing that I'm doing the right thing by sending them money every month though. Eventhough we didn't agree on a number, isn't sending them a few bucks better than sending them nothing? I'm hoping to settle at $3750 for each loan.

Good luck with everything. I hope you can get everything paid off and over with very soon.

Re: AES/Keybank Student Loan CO question...

Anonymous — Tue, 15 Jun 2010 19:03:49 GMT

The CA will add a tradeline. So it will show up under negative accounts and under the collections section. How the OC reports it will determine what they did with the bad debt (sold it or assigned it.) In my case they sold it and they removed the TL from my credit report. I just have the CA on there and only on Experian so I kind of lucked out.

I would think sending them something is better than nothing, but don't just throw money away either. I get a receipt each month from the CA I am working with that shows my payment and my new balance.

Good luck to you as well!

Re: AES/Keybank Student Loan CO question...

1gr8deal — Sat, 26 Jun 2010 03:06:25 GMT

I just went through a long process with AES, they refused to remove the "insurance claim paid" listing from my reports. You didn't said if these were private loans or government loans, mine were government loans and I was able to rehab the loans but AES still will not remove the claim paid status. After the successful rehab my loans were sold to SunTrust Bank and they are reporting a positive TL along with AES.

If you are able to rehab the loans I would recommend that you do. If not then you need to cut the best deal you can with the CA because they can garnish your wages.

As far as why there are 4TL on 2 loans; this is what AES explained to me, AES is not the lender but they are the servicer/guarantor on the loan thus the listing AES/KeyBank USA , when the loans defaulted the government paid the guaranteed portion of the loans and AES reported that to the CRA's that left the outstanding balance in default with the lender, in this instance KeyBank and they are reporting the CO of the loan balance as is their right So now you have both AES and Keybank

reporting negative information on the same loans and this will cause a problem but they are reporting it accurately.

Re: AES/Keybank Student Loan CO question...

1gr8deal — Sat, 26 Jun 2010 03:12:50 GMT

Oh and I forgot to tell you to be careful with the CA, when you make an agreement with them make sure they agree to not report to the CRA's unless you default on the agreement or they will put a 3rd (that would be 6) listing of these loans! They may remove there negative listing after you pif but you really don't want to wait that long. So get their agreement in writing.