topic Re: Removing Late Payments after Paying in Student Loans

Removing Late Payments after Paying

Anonymous — Sat, 11 Jul 2015 16:22:27 GMT

This site has a lot of great information and recently decieded to join after reading many threads about this subject. So here it goes:

I mistakenly let my student loans go into default. I had 3 loans from Fed Loan Servicing that went into default and was picked up by US Dept. of Education. Now my CR has 6 accounts. I called DOE and was told if I can pay the balance within 90 days all negative tradelines will be removed. I agreed. I paid off the balance when I made my last payment last month. I pulled my CR yesterday and noticed that they just changed the status to paid and all my late payments are still there. Did some searching on this board and I've read on here that they are not obligated to remove the late payments. Is this true? I was under the impression that all my late payments from DOE and Fed Loan would be removed.

Because I have Fedloan and DOE reporting late payments, I have 30 lates being reported from Fedloan and another 36 on behalf of DOE. That’s 66 total OUCH!!. Mostly are 90+ late. How can I get these removed? It’s stressing me out and I want to apply for a mortgage.

For those curious my score went up +33 on EX and +23 EQ when they changed the status of my loan.

Any help would be much appreciated!!!

Re: Removing Late Payments after Paying

SCF — Sat, 11 Jul 2015 23:28:50 GMT

I have never heard of the DoE offering to remove negative reporting in exchange for repaying the total balance in a short amount of time. Most of what you found here probably referred to the rehablitation process, which involves 9 on-time payments to the collection agency in order to bring the loans out of default status. Once the loans are back in good standing, some of the negative reporting is removed, but servicers are not required to remove the late payments leading up to the default.

Did you get your repayment agreement in writing? Who did you make this agreement with? (The DoE, the collection agency handling your defaulted loans?)

Re: Removing Late Payments after Paying

Anonymous — Sun, 12 Jul 2015 02:08:27 GMT

Unfortunately, I did not get that in writing. I made the agreement with DOE. If I had known what I've read on here I wouldn't have paid it so quickly. I'm going to call them back on Monday. We'll see how it goes...