topic Rebuilding Credit- defaulted student loans in Rebuilding Your Credit

Rebuilding Credit- defaulted student loans

Anonymous — Thu, 26 Jan 2017 03:55:33 GMT

I am in the process of starting to establish/rebuild credit after defaulting on my federal student loans roughly 8 years ago. I was under the impression my credit would still be very poor because of the loans, but after checking my score, I found otherwise. My scores are actually good. I dont have any active credit except for a joint account with a relative.

Im still very confused about how my scores can be high with that type of history. i was told by a few people that because it was over 7 years ago that it may have stopped affecting my credit score. It seems that my credit started to climb around the begining of last year, which would have been about 7 years.

i was under the impression that federal loans never stop affecting credit. Am I incorrect?

Does anyone have any experience with this?

I am also wondering about the best way to rebuild/ establish credit

Re: Rebuilding Credit- defaulted student loans

gdale6 — Thu, 26 Jan 2017 23:00:11 GMT

Federally backed SLs are subject to the Higher Education Act and CRTP may be different for them.

Re: Rebuilding Credit- defaulted student loans

RobertEG — Fri, 27 Jan 2017 01:37:48 GMT

Did you ultimately pay the student loans after your default?

Federal student loans are exempted per the Higher Education Act from SOL and from the normal credit report exclusion periods while the debt remains in default.

The lendor is additionally required under the Higher Education Act to report to at least one CRA.

Is the loan still in default, and is it still showing in your credit report?

Re: Rebuilding Credit- defaulted student loans

Anonymous — Fri, 27 Jan 2017 01:46:27 GMT

I did not pay on them at all. No action was taken on my part. It shows that it was removed. Roughly a year ago