topic How bad are those Sallie Mae 180 lates hurting my score after three years in Student Loans

How bad are those Sallie Mae 180 lates hurting my score after three years

danny4l — Fri, 01 Mar 2013 16:14:13 GMT

I'm under the impression now that Sallie Mae will not make a goodwill adjustment and remove my lates.

The lates will stay on my report till mid 2017.

I have 11 medical collection accounts on my account, a medical judgment, a 30 day BOA late, and a 60 day chase late. My FICO score is 646 right now. How much are those student loans affecting that score?

Re: How bad are those Sallie Mae 180 lates hurting my score after three years

Simply827 — Fri, 01 Mar 2013 17:46:14 GMT

Still pretty badly and will likely have an effect for the whole 7 years they're on your report. I'm in the same boat. So is life.

Re: How bad are those Sallie Mae 180 lates hurting my score after three years

danny4l — Fri, 01 Mar 2013 17:59:22 GMT

Can you give me an idea how badly they will affect my score for the 7 years?

I thought the damage diminishes as the time goes by so that it affects the score less by the 7th year.

Do you think I could have a 740+ score in 1-2 years with those 180 lates on file?

Re: How bad are those Sallie Mae 180 lates hurting my score after three years

Simply827 — Fri, 01 Mar 2013 18:05:43 GMT

I don't exactly know how badly, but they don't diminish as much as a 30 or 60 day late.

If you take care of the rest of your file you can definitely get into the low 700s. I'm not so sure about 740+. In order for that to happen the rest of your report would have to be spectacular.

Edit: How many accounts were you 180+ late on?

Re: How bad are those Sallie Mae 180 lates hurting my score after three years

danny4l — Fri, 01 Mar 2013 18:07:43 GMT

five 180 day lates and three 90 day lates from three years ago.

Re: How bad are those Sallie Mae 180 lates hurting my score after three years

Simply827 — Fri, 01 Mar 2013 18:29:25 GMT

I could see if it was only 1 account, but 5 will drag you down for a long time. Just focus on the other areas of your report for the best possible score.

Re: How bad are those Sallie Mae 180 lates hurting my score after three years

danny4l — Fri, 01 Mar 2013 18:46:00 GMT

Do you know if there is a way that I can consolidate all those student loans into one big loan with only one payment so that in the future if something bad were to ever happen, I would only have one account to be worried about as opposed to the 9 or so that I currently have?

Re: How bad are those Sallie Mae 180 lates hurting my score after three years

SCF — Fri, 01 Mar 2013 19:03:24 GMT

You can consolidate your federal student loans at any time. Generally, a consolidation loan will put all of your loans under one lender, and allow you to make one payment each month. You may still have more than one tradeline however, because different types of federal loans (for instance, subsidized vs. unsubsidized) will be put into different tradelines. My consolidation loan was two tradelines before I paid one portion of it off.

Re: How bad are those Sallie Mae 180 lates hurting my score after three years

danny4l — Fri, 01 Mar 2013 19:12:00 GMT

Do you recommend that I consolidate the loans? Whenever I look at the Sallie Mae statement, all those different loans confuse me.

Am I thinking correctly in wanting to consolidate those loans into one or two loans?

Re: How bad are those Sallie Mae 180 lates hurting my score after three years

WhyDidntIListentoMom — Fri, 01 Mar 2013 19:57:03 GMT

Are these 'Federal' loans or 'Private' Sallie Mae loans? Private loans would be called: Signature Student or Smart Option.

I am in the same boat as you and have great experience working with our 'friends' at Sallie Mae.

Re: How bad are those Sallie Mae 180 lates hurting my score after three years

Simply827 — Fri, 01 Mar 2013 20:45:57 GMT

danny4l wrote:

Do you recommend that I consolidate the loans? Whenever I look at the Sallie Mae statement, all those different loans confuse me.

Am I thinking correctly in wanting to consolidate those loans into one or two loans?

If your loans are Federal you can indeed consolidate them. Note that this won't make the negative information on your old tradelines disappear. Also note that if you consolidate you may be limiting yourself in terms of flexible payment plans, payment term, etc. Do your research and make an informed decision.

You can call Sallie Mae and have them put your loans into specific billing groups so that they are easier to keep track of. For example I made billing groups separating my Private and Federal Loans. You may also choose to do it based on Sub/Unsub, or based on interest rate.