topic Re: FYI NO MORE DIRECT LOANS in Student Loans

FYI NO MORE DIRECT LOANS

Anonymous — Wed, 09 Oct 2013 22:33:32 GMT

Apparently, direct loans is no longer servicing federal student loans. All accounts have been transferred to other servicers. There is no one available to fix errors and all disputes need to be done through the actual credit bureaus. Fortunately, nelnet has access to my account information and is sending me a letter that I was in deferment when a +120 day late payment was posted. My question is when this is fixed, how long will it take to show on my credit report and what kind of score boost could I be looking for since it was posted incorrectly on TWO accounts.

Re: FYI NO MORE DIRECT LOANS

Anonymous — Thu, 10 Oct 2013 02:03:40 GMT

The "Direct Loan Servicing Center" was run by ACS, which was a Direct Loan servicer whose contract with the Dept of Ed ended and was not renewed. All ACS-serviced loans were transferred to other servicers. Direct Loans are still Direct Loans and loans are still being made under the Direct Loan program. See this link for additional info. I know this doesn't answer your question but I wanted to provide clarification.

Re: FYI NO MORE DIRECT LOANS

Anonymous — Thu, 10 Oct 2013 21:23:07 GMT

they do not answer their phone number and the number will no longer be active sometime in november. I was trying to get a payment error fixed. But according to nelnet who now has the loan, i am going to have to send the papers to the credit reporting agencies.

Re: FYI NO MORE DIRECT LOANS

kayvee_ — Sat, 19 Oct 2013 17:50:58 GMT

@Anonymous wrote:
they do not answer their phone number and the number will no longer be active sometime in november. I was trying to get a payment error fixed. But according to nelnet who now has the loan, i am going to have to send the papers to the credit reporting agencies.

Do you have the papers now? Do you have them as hardcopies or electronic format? If you have them in electronic format, you can easily dispute the error online for any credit file you need. If it shows up on each agency, then you are looking at three disputes (one each). Disputes usually take 30 days to process and they will send you a letter letting you know the results.

If you have a hard copy, there should be instructions on each website on how to send in letters in to dispute.

Re: FYI NO MORE DIRECT LOANS

chan85 — Fri, 25 Oct 2013 19:53:48 GMT

@Anonymous wrote:
The "Direct Loan Servicing Center" was run by ACS, which was a Direct Loan servicer whose contract with the Dept of Ed ended and was not renewed. All ACS-serviced loans were transferred to other servicers. Direct Loans are still Direct Loans and loans are still being made under the Direct Loan program. See this link for additional info. I know this doesn't answer your question but I wanted to provide clarification.

When were the loans transferred? I only have 1 with them, the rest are with FedLoan, but haven't heard anything or received paperwork about it being transferred?

Re: FYI NO MORE DIRECT LOANS

shootingstar_81 — Wed, 05 Mar 2014 21:30:46 GMT

I was advised in November 2013 that since Direct Loans Servicing is no longer that when you dispute the account they will not respond. I disputed all of the past delinquent accounts as "not mine" and they were ALL deleted! This was awesome however I wish I has disputed as "never late" as removing them causedmyAAOA to drop. So make sure to dispute as "never late"!

Re: FYI NO MORE DIRECT LOANS

Bill2265 — Thu, 06 Mar 2014 00:58:08 GMT

Funny you mention that. I JUST finished disputed all my Dept of Ed loans and all the past payment history was deleted but the loans remained. I checked the box "I never paid this account late" worked like a charm! They deleted about 26 late payments total from five different tradelines. I tried the same "trick" with Edfinancial and they verified the late payments and also put the account description BACK to collection account AND 120 past due. SO i had to call customer service and have her put everything back the way it was post rehab. Just FYI

Re: FYI NO MORE DIRECT LOANS

SCF — Thu, 06 Mar 2014 03:51:19 GMT

@Bill2265 wrote:
I tried the same "trick" with Edfinancial and they verified the late payments and also put the account description BACK to collection account AND 120 past due. SO i had to call customer service and have her put everything back the way it was post rehab. Just FYI

A perfect example of why disputing information that is correct can result in unintended side effects. It's also not really honest to dispute accounts as "not mine" that did belong to you, or "never paid late" when they were indeed late and that information can still be legally reported. I don't think that's the right thing to do.

Re: FYI NO MORE DIRECT LOANS

SoshiHomie84 — Sun, 09 Mar 2014 07:09:07 GMT

Just FYI, I know of two other people besides myself who never defaulted but had multiple Direct Loans (for me 9 total) with 4 derogs on each loan. Over the last month we disputed and ALL lates were removed. Technicaly, the lates were correct (with some minor quibbles), but since no one is there to return an answer to the dispute, they get removed.

So anyone with Direct Loans lates really should dispute becasue they will be taken off your report. Mine showed up like this on the CRs -- U.S. DEPT OF ED - DIRECT LOANS.

Good luck!

Re: FYI NO MORE DIRECT LOANS

Anonymous — Sun, 09 Mar 2014 07:54:33 GMT

@tomas247 wrote:
Just FYI, I know of two other people besides myself who never defaulted but had multiple Direct Loans (for me 9 total) with 4 derogs on each loan. Over the last month we disputed and ALL lates were removed. Technicaly, the lates were correct (with some minor quibbles), but since no one is there to return an answer to the dispute, they get removed.

So anyone with Direct Loans lates really should dispute becasue they will be taken off your report. Mine showed up like this on the CRs -- U.S. DEPT OF ED - DIRECT LOANS.

Good luck!

Disputing valid derogs is considered unethical and a violation of myfico's User Guidelines and TOS. The advising of such behavior is also prohibited.

Further, lates can be re-inserted at a later time.

~Lexie, myFICO Moderator

Re: FYI NO MORE DIRECT LOANS

SoshiHomie84 — Sun, 09 Mar 2014 08:23:52 GMT

Welp, technically some of the dates were reporting incorrectly. For instance how it is possible to be 120 late in May, and 90 late in June without making a payment and no late at all in April, lol? So it's their fault for reporting inaccurately. Sure it was late, but they didn't report with accuracy, so they lose. I win.

The point is that Direct Loans is not checking and people should be able to have lates removed when the rules are not being enforced. Are we not to take advantage of opportunity? I'd say not to is naive.

Re: FYI NO MORE DIRECT LOANS

SCF — Sun, 09 Mar 2014 16:46:46 GMT

@tomas247 wrote:
Welp, technically some of the dates were reporting incorrectly. For instance how it is possible to be 120 late in May, and 90 late in June without making a payment and no late at all in April, lol? So it's their fault for reporting inaccurately. Sure it was late, but they didn't report with accuracy, so they lose. I win.

The point is that Direct Loans is not checking and people should be able to have lates removed when the rules are not being enforced. Are we not to take advantage of opportunity? I'd say not to is naive.

Actually, the situation you describe is possible if a partial payment is made, a loan is about to be transferred to another lender, or some type of new payment agreement/deferment or forbearance is agreed on. Your general rule of thumb, with credit reporting as with all things should be to tell the truth and act ethically. If your dipuste to the CRA stated that you were never late, then you lied, and I don't think that is right, and as Lexie pointed out, it's also again the TOS for this site.

I totally understand that you want to improve your credit, and why, but I've never understood the attitude of "I've commited to not making any more mistakes, so I shouldn't have to deal with the consequences of my old ones anymore."

Re: FYI NO MORE DIRECT LOANS

Anonymous — Tue, 22 Jul 2014 23:27:45 GMT

Hello happy ppl! This is my first post after months of lurking I came upon this particular thread after inserting "Direct Loans" in the search box. I want to attest to the fact that Direct Loans were wiped off of my CR after only dispute (via TU website). I honestly did have issues with the way in which the information was listed. After submitting my dispute (via TU website), in a matter of hours, i received notification that changes were made to my CR. Now, IDK if it was due to the information shared by User: shootingstar , but the 3 (Direct Loans) TLs were deleted nonetheless. I do hope someone gets some confirmation or atleast some assurance from my experience.

PS. My TU scored did drop 2 points immediately after

Again, all you guys are awesome for your input, I've Learned SOOOO much about Crediting and Finances from yall!!!!

Re: FYI NO MORE DIRECT LOANS

Anonymous — Thu, 24 Jul 2014 03:27:12 GMT

So I should dispute any US DOE late payments right now? I have a couple 60 days that happened when I was really sick...I'm in the process of rebuilding my credit now. It's either dispute the late payments or send a GW letter. Is this an acceptable route?

Re: FYI NO MORE DIRECT LOANS

SCF — Thu, 24 Jul 2014 23:52:54 GMT

@Anonymous wrote:
So I should dispute any US DOE late payments right now? I have a couple 60 days that happened when I was really sick...I'm in the process of rebuilding my credit now. It's either dispute the late payments or send a GW letter. Is this an acceptable route?

The dispute process is there to help you correct inaccurate information on your credit report. If the lates are accurate, the appropriate course of action is to pursue a goodwill adjustment.

Re: FYI NO MORE DIRECT LOANS

mmmlive1999 — Sat, 20 Sep 2014 04:57:35 GMT

Thank you for this information, I wondered what had happened .... because I had been fighting for corrections to be made to my TL for 2 years with no luck, then on this latest round of disputes Direct Loans was deleted.