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What happens to private student loan info if credit reporting 7 years runs out but SOL hasn't

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What happens to private student loan info if credit reporting 7 years runs out but SOL hasn't

Hi

 

I have 2 private student loans in default that is set to be removed in Apr 2021 (7 year mark). But here in Illinois, private student loans are considered written contracts and has 10 year SOL. 

 

I am in dark as to what will happen after Apr 2021. 

 

Will these 2 private student loans be removed forever after Apr 2021, even though SOL hasn't ran out yet? 

Message 1 of 4
3 REPLIES 3
Moderator

Re: What happens to private student loan info if credit reporting 7 years runs out but SOL hasn't


@Sharkrider wrote:

Hi

 

I have 2 private student loans in default that is set to be removed in Apr 2021 (7 year mark). But here in Illinois, private student loans are considered written contracts and has 10 year SOL. 

 

I am in dark as to what will happen after Apr 2021. 

 

Will these 2 private student loans be removed forever after Apr 2021, even though SOL hasn't ran out yet? 


SOL has nothing to do with the 7 year time frame. If these are not federally backed then they will be gone at the scheduled time while SOL continues on. Federally backed SLs are governed by the higher ed act.

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Message 2 of 4
Frequent Contributor

Re: What happens to private student loan info if credit reporting 7 years runs out but SOL hasn't

The short answer is that they'll be off your credit report, but they could still come after you legally until the SOL runs out...



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Message 3 of 4
Community Leader
Legendary Contributor

Re: What happens to private student loan info if credit reporting 7 years runs out but SOL hasn't

Derogs that are reported by the original creditor under you account with them have exclusion periods of 7 years plus 180 days (max) for any reported charge-offs, and 7 years for monthly delinquencies.

Those exclusions must occur, regardless of your state SOL or regardless of whether or not the debt is paid/settled.

 

However, if they sue and obtain a civil judgment, the judgment has its own, separate exclusion period under FCRA 605(a)(2), which is at least 7 years from the date that the court enters the judgment.  It is entered as a public record derog, and not a derog reported by the creditor.

 

The judgment can thus have an independent exclusion date that is long after the exclusion of derogs reported on the OC account.

Message 4 of 4