topic Re: Direct Loan Magically Reporting Clean? in Student Loans

Direct Loan Magically Reporting Clean?

shane82388 — Mon, 29 Aug 2011 08:53:30 GMT

So i checked my Experian report just for the heck of it and I noticed that my Direct Loan Student Loan that I know had late payments on it is magically now reporting as "OPEN/NEVER LATE"....

I havent made a late payment in a long time but definitely not the 7 years or whatever it takes to completely fall of the report...do you think they "forgave" or is this just a weird thing on Experian and its not going to be the same on my other reports probably?

I havent even good-willed for this student loan because I've read everywhere online that they simply just do no change reporting no matter what because its the federal govt, etc...

anyone got an idea whats going on?

Re: Direct Loan Magically Reporting Clean?

shane82388 — Mon, 29 Aug 2011 09:57:42 GMT

i decided to check my TransUnion score and report tonight and its still reporting some baddies on it....is there a chance that Direct Loans just stopped reporting to Experian for some reason?

Re: Direct Loan Magically Reporting Clean?

Tazman81 — Thu, 01 Sep 2011 00:57:13 GMT

It is possible that it was misreported to Experian. If you know the late is valid I would just let it be for now. You may see it pop back up just as quickly as it disappeared.

That happened to my brother before, but it was with a carloan. It was gone for a good 6 or 8 months, and then suddenly showed back up.

Re: Direct Loan Magically Reporting Clean?

shane82388 — Thu, 01 Sep 2011 01:38:13 GMT

Its just odd it can be gone off their record and somehow they get it back...hmm...thats annoying lol.

Re: Direct Loan Magically Reporting Clean?

Tazman81 — Thu, 01 Sep 2011 02:19:13 GMT

yeah, it normally comes with a "glitch" in the reporting record. So the company may change the format of their reporting, or put an extra comma somewhere when sending the data and poof your info is gone. Then through QA or whatever, poof, it's back. Or it may even stay gone the entire 7 years.

Re: Direct Loan Magically Reporting Clean?

Anonymous — Tue, 13 Sep 2011 21:30:50 GMT

Mine did the same thing with cleaning up the late payments. Also stopped reporting to experian but im happy about that because it raised my score about 50 points so im not sayin a thang! i also have direct loans.

Re: Direct Loan Magically Reporting Clean?

shane82388 — Mon, 03 Oct 2011 03:35:17 GMT

it might have something to do with this possibly?

http://ed.gov/offices/OSFAP/DCS/rehabilitation.html

basically make 9 payments in a row on time and they erase the baddies? how has this never been mentioned on here before? or how have i not heard of this...?

Re: Direct Loan Magically Reporting Clean?

gamegrrl — Tue, 11 Oct 2011 12:25:19 GMT

@shane82388 wrote:
it might have something to do with this possibly?

http://ed.gov/offices/OSFAP/DCS/rehabilitation.html

basically make 9 payments in a row on time and they erase the baddies? how has this never been mentioned on here before? or how have i not heard of this...?

I did have a defaulted student loan fall off one of my reports for three months, but it returned.

I hate to be the bearer of bad tidings, but the student loan rehabilitation program does NOT work as it's stated in this description.

Rehabilitation is a very long process, made even longer these days by the extended wait to find a new buyer for your loan. I'm just starting my work day, so I don't have enough time right now to go into great detail. Suffice to say that the Student Loan Rehabilitation Program does NOT remove the negatives from your credit reports. I just did a quick check, and I see that they have changed the old wording (which said, in effect, that the negatives would be removed from your credit reports) to new wording that says "Your loans will no longer be considered to be in a default status". That is much more accurate than the old wording.

So instead of saying "This person IS in default", your credit reports say "This person WAS in default". The negatives will fall off your reports following the same schedule as any other baddie. They are NOT erased.

Frankly, I feel they have mislead people for years by putting forth the notion that if you go through their rehabilitation program all negative info associated with the defaulted loans disappear. Not only that, but it can be a battle just to get your credit reports to reflect the fact that you are no longer in default. The absolute best you can hope for is to have the "paid through insurance" notation removed from the accounts.

The student loan program is evil and, in my opinion, misleads and outright lies to people.

I had three student loans that I defaulted on in 2006. As soon as I had income again, I entered their "official" loan rehabilitation program. I paid on the loans for 12 months in a row in 2007, and it took over a year for them to find an entity to buy my loans. Someone has to buy your loans for your loan rehab to be complete. With no buyer, you could make 1,000 on-time payments in a row and you still wouldn't have rehabbed loans. They finally sold the loans and I expected the negatives to magically drop off my credit reports. That did not happen, and I was told by the Ombudsman office at the Dept of Ed that what their website says (or said, if they have changed it) was misleading.

Good luck.

Re: Direct Loan Magically Reporting Clean?

FicoTron — Thu, 13 Oct 2011 18:23:26 GMT

gamegrrl - it depends on who you originally borrowed from. Its seems to me that anyone other than Direct Loans/USDoE sticks it to you as far as keeping baddies on for the long haul. Direct Loans, however is in the process of removing mine, and has put a positive tradeline that says that my payments have been on time for the past 7 years, which is an absolute fallacy, but I'm not complaining.

Re: Direct Loan Magically Reporting Clean?

Anonymous — Fri, 09 Mar 2012 14:48:57 GMT

I discovered today that Direct Loan Servicing is having some problems reporting to Experian. For those of you using Direct Loan Servicing you'll remember they made a switch to a new system back in October of 2011. My student loan was coming up as "closed/transferred" as of September 2011 and although I've made on time payments ever month since then up to and including Feburary 2012 they are not showing up. I knew this wasn't an isolated incident because the same exact thing was happneing on my wife's credit report for a similiar loan from them. I called Experian and they told me to call Direct Loan Servicing. They admitted they had a problem and are working on resolving it.

Re: Direct Loan Magically Reporting Clean?

Anonymous — Fri, 09 Mar 2012 23:18:07 GMT

Sometimes the reports are just slow, or they get back logged in the office making reports. It is definitely not something to worry about, but I wouldn't bet on it staying clean forever. If you want some more tips on how to clean up bad credit from student loans, then check out this website. It has a lot of great information. Mod Cut!

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