I had a private loan through my University that I was making payments on , and as of recent , it has been transferred to the federal government for servicing. The account had some missed payments on it, but since it's been transferred, it's now on my credit report twice, under two different names. I spoke to the original servicer, and they said I no longer make payments to them, and that I will make my payments to the government entity.
My question to you is, should I dispute the original account now, or do I let both of them report ? Or will the original account go away on it's own? If I can no longer make payments to the orginal servicer , it shouldn't even be on my credit report, right ? It seems like the updated account doesn't have the past negligencies from the orginal servicer, which is a good thing. How do I go about this ? Should I just leave it alone?
I'll page @calyx our in house SL expert.
Hey @calyx , care to chime in ?
The original account should remain on your credit report.
I've noticed that CRAs sometimes remove old/closed student loans on the report when they are transferred to a new entity, but that's just their own internal housekeeping, but technically, it should remain.
The only time a closed loan would stop appearing is if it was defaulted and then the borrower successfully completed a rehab. And then it's not removed, just brought current with the default removed.