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Student loan account dilemma ?

BM1990
Valued Member

Student loan account dilemma ?

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?



Experian: 626
Equifax: 596
Transunion: 628

3 REPLIES 3
FireMedic1
Super Contributor

Re: Student loan account dilemma ?

I'll page @calyx our in house SL expert.






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 2 of 4
BM1990
Valued Member

Re: Student loan account dilemma ?

Hey @calyx , care to chime in ? 



Experian: 626
Equifax: 596
Transunion: 628

Message 3 of 4
calyx
Super Contributor

Re: Student loan account dilemma ?

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.

F8 EQ: 807 | EX: 785 | TU: 790 | Accounts: 1/6 3/12 6/24 | Reporting: AZE8
Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 4 of 4
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