Advice on Closed Navient accounts with no lates and no negative info.

[Anonymous]

Hey everyone,

Long story short: Originally defaulted on 2 separate FFEL Federal Stafford loans back in 2007. Both accounts Eventually fell off all 3 CB reports sometime in 2014 and reappeared (only on Experian report) in 2016. Both Navient accounts show very minimal information and no negative info (or late payments) what so ever. My questions are as follows::

1. Will both of these Navient solutions accounts stay on my credit report for the next 7 years even though there is no negative Information and both basically report as “Closed accounts” which were transferred to another office?

2.Being that I am currently in the process of consolidating both of these through the DE, would the Navient accounts be removed automatically when the new loan (from consolidation) pops up on my credit report?

3 Can I dispute both of these accounts once they have been consolidated, servicer has received payment in full and new loan shows up on credit reports, being that there is no negative payment history?

Any information would be gladly appreciated.

Thank you

[calyx]

1.   These are (proably) negative (collections) accounts.  They would stay on your file until 7y or 7y+180d from your DOFD.    Chances are, they'll be deleted at 7y because the CRAs are pretty automated.   Technically they could stay on your account until the entire student loan debt is repaid, but they probably won't (HEA requires them to stay reporting, but I also consolidated defaulted loans and they dropped right off).

2.  Probably, because your DOFD is likely >7y (if your default is 2007)

3.  It's not the negative payment history that is marking them as derogatory, but that they're collections accounts.   I would wait to see what happens after those accounts are closed and your new consolidation is reporting.   This could take a few months, it could be quickly (in my case, my collections closed very quickly, but it took 4 months for the new loan to show).

[Anonymous]

1. No. They are reporting that way because they are in default. The accounts are still valid and will either fall off in 7 years, usually only when the loan is paid in full (like it will be through consolidation). I'm curious why you would want them to though since there is no negative history reporting. I'm pretty sure they are helping your credit score/ history.

2. No, this only possibly happens with rehabbing. Consolidation is basically taking out a new loan. Everything will be reset in terms of past payments and any possible current or future disputes inaccuracies will no longer be possible. You'll lose the FFEL benefits and gain the Direct loan benefits. You might also want to check out if you'll be losing your benefits of other plans other than income-contingent repayment, which can have quite high payments. It could possibly be more beneficial to you to rehab, then consolidate when they are in good standing. I'm not sure if that would help you retain access to IBR, REPAYE etc. if you have interest in that. That's just likely to lead to forgiveness, if your details support it.

3. You could try, they are sometimes unpredictable. But no, you wouldn't have a right to have them removed.

[Anonymous]

There is such an abundance of useful information here thank you for clearing that up. I’m not necessarily set on having them removed since they don’t report any negative info but I guess at some point one becomes a bit obsessive in what we see on our credit reports while trying to reach for that highest score and cleanest slate possible. Total current balance owed on these loans is just below 10k and overall DTI is the best it’s ever been for me so I’m not concerned about the loan benefits I’ll be losing. I’ll be setting up a standard repayment plan and pay until I’m finally free. Consolidation is my best and only option right now only because Im hoping to be a homeowner very soon using my VA home loan benefits but I’m currently on the CAIVRS system and need to be removed from that ASAP in order to be considered .