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Issue With Student Loan After CH7 and it's Effect on Credit Score

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New Contributor

Issue With Student Loan After CH7 and it's Effect on Credit Score

Hello. CH7 was dicharged 10/2017. The student Loan from over a decade ago was closed IIB and then reinstated in good standing on EX and EQ. However, the student was closed and never reinstated on TU. Does this omission have a negative effect on my TU credit score? My Fico 8 TU score is about 50 points lower than EX and EQ. Any advice would be helpful. Thanks. 

Message 1 of 7
6 REPLIES 6
Valued Contributor

Re: Issue With Student Loan After CH7 and it's Effect on Credit Score

Hi,
I'm not familiar with CH7 at all but I do understand federal student loans. If you can explain what happens with the loans I might be able to help.
Was the loan in default? Was it picked up by a new servicer?
If the loan was in default and is now listed as picked up by a servicer again, this can give you a huge increase on your score. As that new tradeline ages, your score will continue to get better. The TU report is completely missing out on these benefits, even more so if a record of default or late payments are still on there. You've got nothing positive to replace it with.
However I know that it can sometimes take a few months to report. If it's been longer than that I'd definitely call up your servicer and find out what's going on. To my knowledge they all report to all 3.
I've found the first person you talk to generally had very little access, so ask for an account specialist. This might take a while to fix but it'll be worth it for the score improvement.
Hope this helps.



Message 2 of 7
New Contributor

Re: Issue With Student Loan After CH7 and it's Effect on Credit Score

Hello, Sabii. I contacted the student loan provider yesterday and a nice rep told me that they have been reporting my student loan in good standing to all three credit bureaus on a monthly basis. They advised me to contact TU to clear up the issue. I spoke with someone at TU and they opened up a dispute and said that they will contact the student loan provider to verify that the account is indeed open and in good standing (results could take 30 days). I look forward to the correction and a dramatic uptick in my TU credit score. Thanks for your reply.  

Message 3 of 7
Valued Contributor

Re: Issue With Student Loan After CH7 and it's Effect on Credit Score

Which servicer? Did you speak with the account specialist?
I could be wrong in your case but I always take what they say with a grain of salt and assume they're not telling me the whole story.
If they were reporting it to TU it would be there. It sounds like there is an error within the servicer's system. That's not uncommon. I think they're giving you the run-around but luckily it might work by getting TU involved. If not, I would stay on your servicer. It's their error, not TU's, and they need to fix it.



Message 4 of 7
New Contributor

Re: Issue With Student Loan After CH7 and it's Effect on Credit Score

Cornerstone is the student loan servicer and the service rep did put me on hold a few times during the call. Hopefully the issue will be resolved quickly.

Message 5 of 7
Community Leader
Super Contributor

Re: Issue With Student Loan After CH7 and it's Effect on Credit Score

I would say its on TU's end at this point if the other two are reporting it correctly, and the rep said they have been reporting it in good standing to all three. Hopefully things work out, keep us posted!

My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 6 of 7
New Contributor

Re: Issue With Student Loan After CH7 and it's Effect on Credit Score

Yes. I will update the forum when the results come back.

Message 7 of 7
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