topic Re: Direct Loans in Student Loans

Direct Loans

Maldanado — Fri, 04 Nov 2011 18:31:35 GMT

For some reason I'm just noticing that this month my Federal Direct Loans are showing a $0 balance and saying transferred/sold on my reports. The account is in good standing for 13+ years, and the actual balance is roughly $40,000. I know eventually the balance will show back up, but will it kill my scores?

Re: Direct Loans

GoodCredBen — Fri, 04 Nov 2011 18:47:38 GMT

This would probably be best suited for the student loan forum, but all it means is that they sold it to someone else.

you cal call them and see who the person you wil now be paying is.

Re: Direct Loans

Anonymous — Fri, 04 Nov 2011 19:36:44 GMT

My Direct Loans say the SAME exact thing .. the first time i saw it i was like **bleep** !!!! the only thing I can think of is that they migrated their website within the last month and maybe they are changing names or something .. I have NO real decent reason ... but seeing transfer/sold definitely FREAKED me out ... mine is even under CLOSED ACCOUNTS with a $0 balance PAYS/AGREED... lol Oh how I wish that were so very true !!

Re: Direct Loans

MattieNumNums — Fri, 04 Nov 2011 21:23:24 GMT

Direct loans transfered all of there loans. Its showing up the same on my credit report but I was told that this would change once the loan information is all updated.

Re: Direct Loans

wednesdayaddamsd — Sat, 05 Nov 2011 11:18:24 GMT

Did anyone who had this loan show up with a zero balance have a score change at all? Up, down, or no change?

Re: Direct Loans

Anonymous — Sat, 05 Nov 2011 22:16:17 GMT

I had no score change when they changed my balance

Re: Direct Loans

Anonymous — Sat, 05 Nov 2011 23:00:02 GMT

Mine dropped and my AAOA when down 4 years as my student loan with Direct Loan is my oldest account....

Re: Direct Loans

Booner72 — Sun, 06 Nov 2011 04:00:34 GMT

No change

Re: Direct Loans

thebanjoman — Sun, 06 Nov 2011 15:14:14 GMT

@Anonymous wrote:
Mine dropped and my AAOA when down 4 years as my student loan with Direct Loan is my oldest account....

It shouldn't affect your AAoA until it drops off your report entirely, some sites like creditkarma will show an open AAoA which is contrived.

Re: Direct Loans

Jazzzy — Fri, 11 Nov 2011 16:13:11 GMT

@thebanjoman wrote:
@Anonymous wrote:
Mine dropped and my AAOA when down 4 years as my student loan with Direct Loan is my oldest account....
It shouldn't affect your AAoA until it drops off your report entirely, some sites like creditkarma will show an open AAoA which is contrived.

I agree. This account will still show and be counted in AAoA for your FICO scores. Doesn't matter whether it is open or closed. I'm going through this as well, and I don't think the account closing affected my score...if it did, then only a tiny bit. I'm curious to see if it is counted as a new account when they open it back up. That will make me angry because it will lower AAoA.

Re: Direct Loans

Anonymous — Sat, 12 Nov 2011 04:51:47 GMT

It shouldn't affect your score. It's no fault of yours. Usually they include a note that the account was transferred. This happened with several of my student loans too, and it was a nuisance trying to keep up with who had my account next. That's why i transferred all loans to Direct Loan in hopes that dealing with the Fed gov directly might stop all the account transferring - but I see i must've been wrong - that's disheartening. In any case, be sure to keep all statements or whatever paperwork you have. I agree with whoever said contacting them to find out who has the account, account details, etc. Make contact with the new loan holder for confirmation and payment schedule.

Re: Direct Loans

Maldanado — Thu, 17 Nov 2011 18:39:41 GMT

I called and spoke with a customer service rep for Direct Loans. She said that they are consolidating loans, and instead of having accounts A-Z it will be just one account. Either way she said it will post as a new account after your next payment, but the account will be aged properly. So I'll have 44k owed on a 14 year old account rather than a 1 month old account. She also said it shouldn't hurt my score, but if it does to call them back.

Re: Direct Loans

Anonymous — Wed, 23 Nov 2011 03:39:19 GMT

I just checked my CR and EQ is now showing the new/old loans.

Both 'new' loans in my case are backdated from '98 along with my old 'closed' loan. So it tripled AAoA in my case

Re: Direct Loans

Anonymous — Tue, 12 Jun 2012 18:14:43 GMT

Same thing for me. Also, I found on my Experian that they closed the old account, opened each loan separately and then did not update any of my payments since nov 2011. I suggest checking all three of your reports to make sure that with the new accounts, they have reported all your payments since the move. I have put in a dispute for them to update the balance and payment history.