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Anyone know how I can get student loan default reporting removed from CR after consolidation?

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Valued Member

Anyone know how I can get student loan default reporting removed from CR after consolidation?

Hello, I had a 30,000 student loan with New York State Higher Education Services(NYSHESC).I have consolidated with DIRECT loans program for a much better interest rate. However, the NYSHESC account shows on my credit report as a paid collection/chargoff account with a zero balance which is BAD!!!. I called and asked them if they would be willing to make a goodwill gesture and either delete the tradeline or change the payment status to paid as agreed since after consolidation with direct loans I have been making good ontime payments. They told me that it is not up to them how the credit agencies report it, and they said if I have a problem with how it is reported to the credit bureaus I must dispute it with them. This sounds kind of odd, you think they would have the authority so say how it should be reported, yet they told me they cant? So my question is that is there anything I can do to get this default reporting removed from my credit report? I think I read somewhere that if you have federal loans and that if you consolidated and your loans have been rehabbed that the last person that had your loan must either delete the listing or show paid as agreed. Problem is I never officially completed rehab, I just consolidated them when they were in default/chargoff status. Any suggestions would be appreciated, thanks.
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Valued Member

Re: Anyone know how I can get student loan default reporting removed from CR after consolidation?

I ended up defaulting while my husband was being treated for terminal cancer; a year after his death I consolidated, the old defautled line shows as paid in full, with one 90 day late from 2004. Weird thing about that is that the late shows for the month after the loan reports as paid.
Scores 9/2008: TU-720, EQ-695, EX-678
Scores 10/08/08: TU-721, EQ - 694, EX - 688
Message 2 of 5
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Regular Contributor

Re: Anyone know how I can get student loan default reporting removed from CR after consolidation?



aerospace10 wrote:
Hello, I had a 30,000 student loan with New York State Higher Education Services(NYSHESC).I have consolidated with DIRECT loans program for a much better interest rate. However, the NYSHESC account shows on my credit report as a paid collection/chargoff account with a zero balance which is BAD!!!. I called and asked them if they would be willing to make a goodwill gesture and either delete the tradeline or change the payment status to paid as agreed since after consolidation with direct loans I have been making good ontime payments. They told me that it is not up to them how the credit agencies report it, and they said if I have a problem with how it is reported to the credit bureaus I must dispute it with them. This sounds kind of odd, you think they would have the authority so say how it should be reported, yet they told me they cant? So my question is that is there anything I can do to get this default reporting removed from my credit report? I think I read somewhere that if you have federal loans and that if you consolidated and your loans have been rehabbed that the last person that had your loan must either delete the listing or show paid as agreed. Problem is I never officially completed rehab, I just consolidated them when they were in default/chargoff status. Any suggestions would be appreciated, thanks.

Im in the same boat as you are except my loans are with the Connecticut Student loans.  Have you figured out anything yet?
 
I would suggest calling the loan company and finding out who you could mail an GW letter to?  A specific department or something like that.  If that does not work I would say go to their website and look for someone who you can send the GW letter to and send it via certified mail.  Keep sending them until someone answers it.  It is only no more than 3.00 to send certified mail per letter at the post office.  GOOD LUCK  and let me know what happens. 
Message 3 of 5
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New Visitor tde
New Visitor

Re: Anyone know how I can get student loan default reporting removed from CR after consolidation?

You need to request loan rehabilitation http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html
Message 4 of 5
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New Visitor tde
New Visitor

Re: Anyone know how I can get student loan default reporting removed from CR after consolidation?

Let's try this again! All you need to do is request loan rehabilitation!


http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html
Message 5 of 5
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