topic Re: Does student loan late payments age off? in Rebuilding Your Credit

Does student loan late payments age off?

gagirl82 — Tue, 11 Feb 2014 13:59:37 GMT

Hi everyone!

Does anyone know if student loan late payments age off credit reports? I was looking at my reports and I want to say it looks as though for every new month of payments reported the oldest month gets bumped off. Is this correct or do I just have wishful thinking lol?

Re: Does student loan late payments age off?

Anonymous — Tue, 11 Feb 2014 17:07:08 GMT

Yes, after 7 years a late is removed.

Re: Does student loan late payments age off?

RobertEG — Tue, 11 Feb 2014 17:13:55 GMT

If the student loan was guaranteed or insured by the U.S. government, then the exclusion period is greater than 7 years.

There is a footnote appended to FCRA 605(a) referencing the extended exclusion periods, whcih references the Higher Education Act.

Check out the provisions of the Act for the specific periods.

Re: Does student loan late payments age off?

Anonymous — Tue, 11 Feb 2014 17:19:33 GMT

Yes, there is but they are normally removed at 7 years from what I have seen.

Except in my case where it stayed forever and once paid the entire TL was removed.

Re: Does student loan late payments age off?

Anonymous — Tue, 11 Feb 2014 17:35:22 GMT

I thought that government funded student loans have no exclusion.

Re: Does student loan late payments age off?

Anonymous — Tue, 11 Feb 2014 20:03:19 GMT

In what respect are you referring to?

For mine they were on my report for way over 20 years. I defaulted early on and eventually paid them off through offset and they were removed.

ETA: The Higher Education Act decides how long defaulted loans will report. This is directly from them:

(1) 7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty;

(2) 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or

(3) in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan entered default such subsequent time.

Re: Does student loan late payments age off?

Anonymous — Tue, 11 Feb 2014 20:03:26 GMT

Oh, I was referring to them aging off. They will remain on your report until it's paid.

Re: Does student loan late payments age off?

Anonymous — Tue, 11 Feb 2014 20:04:41 GMT

Not necessarily. I edited my post at the same time you posted.

Re: Does student loan late payments age off?

Anonymous — Tue, 11 Feb 2014 21:05:06 GMT

I thought I understood this, but now after reading these posts, I'm confused...

If someone made late payments (on a Sallie Mae student loan, for example) more than 7.0 years ago, the late payments do not fall off the CR's?

Re: Does student loan late payments age off?

Anonymous — Tue, 11 Feb 2014 21:21:38 GMT

Yes, they will.

Re: Does student loan late payments age off?

Anonymous — Tue, 11 Feb 2014 21:30:21 GMT

@Anonymous wrote:
I thought I understood this, but now after reading these posts, I'm confused...

If someone made late payments (on a Sallie Mae student loan, for example) more than 7.0 years ago, the late payments do not fall off the CR's?

Yes they can be removed.

I failed to include the part that says the CRAs may report.....

Re: Does student loan late payments age off?

Libra85 — Tue, 11 Feb 2014 22:15:10 GMT

@gagirl82 wrote:
Hi everyone!

Does anyone know if student loan late payments age off credit reports? I was looking at my reports and I want to say it looks as though for every new month of payments reported the oldest month gets bumped off. Is this correct or do I just have wishful thinking lol?

Have you tired sending a GW Letter to your loan servicing company? I had late payments on 4 different accounts. (1) 60 days late on each. I sent a GW letter last month and I got a call back last Monday stating that the late payments have been removed and my credit report will update within 30-60 days.

Re: Does student loan late payments age off?

Anonymous — Tue, 11 Feb 2014 22:18:44 GMT

Yeah, that's what I would do instead of just waiting. You have nothing to lose.